Results 1 to 9 of 9

Thread: DBS product guards against interest rates rise

  1. #1
    Join Date
    Dec 2011
    Posts
    1,763

    Default DBS product guards against interest rates rise

    Jul 31, 2013 - PropertyGuru.com.sg
    ***
    To help safeguard home buyers against rising interest rates and higher monthly instalments, DBS Bank has unveiled a first-of-its-kind mortgage insurance called DBS Interest Guard.

    The product is an add-on for new and existing mortgages pegged at the Singapore Interbank Rate (SIBOR), which follows the trend of global rates.

    According to DBS, the Interest Guard caps the three-month SIBOR at one percent for the next three years. Borrowers can now cap their interest rates for a specific period even if there is an increase in global benchmark rates.

    It costs between S$5 to S$23 per month for every S$100,000 loan quantum, depending on the type of insurance selected.

    At the moment, the three-month SIBOR is at 0.37533 percent.

  2. #2
    Join Date
    Apr 2011
    Posts
    1,099

    Default

    It's only on Sibor. Wonder who will take up? Banks do not offer options to lose money

  3. #3
    Join Date
    Dec 2011
    Posts
    1,763

    Default

    If u take on the insurance, the most u pay for the next 3 years till 2016 is 1.7% approximately.

  4. #4
    Join Date
    Feb 2009
    Location
    峨眉山
    Posts
    5,512

    Default

    Quote Originally Posted by indomie
    If u take on the insurance, the most u pay for the next 3 years till 2016 is 1.7% approximately.
    $3600 for 3 yrs of peace of mind, assuming loan 500k? Sure will have takers.
    click: 🏢shoeboxmickeymousehouse 🏢

  5. #5
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by indomie
    If u take on the insurance, the most u pay for the next 3 years till 2016 is 1.7% approximately.
    This means the Bank know the rate will not go beyond 1.7%. Will you sell something to lose money?

    We have a talk from a Banker from BNP Bank in France about the Saving rate at 4%. Lots of my colleague transfer SGD to EURO to get the 4% interest. I chose to TT my Euro back to Singapore instead.

  6. #6
    Join Date
    Feb 2009
    Location
    峨眉山
    Posts
    5,512

    Default

    Quote Originally Posted by Arcachon
    This means the Bank know the rate will not go beyond 1.7%. Will you sell something to lose money?

    We have a talk from a Banker from BNP Bank in France about the Saving rate at 4%. Lots of my colleague transfer SGD to EURO to get the 4% interest. I chose to TT my Euro back to Singapore instead.
    BNP Paribas was one of the first few to crack in euro crisis!
    click: 🏢shoeboxmickeymousehouse 🏢

  7. #7
    Join Date
    Apr 2011
    Posts
    1,099

    Default

    Quote Originally Posted by mcmlxxvi
    $3600 for 3 yrs of peace of mind, assuming loan 500k? Sure will have takers.
    Might as well take 3 year fixed avg 1.42

  8. #8
    Join Date
    Jun 2011
    Posts
    6,134

    Default

    banks love to prey on peoples ignorance so please do your own homework
    In the final analysis.....its NOT whether you have a diploma,degree,masters OR PHD....its whether you have a HDB/PC/EC or LANDED...

  9. #9
    Join Date
    Feb 2009
    Location
    峨眉山
    Posts
    5,512

    Default

    Quote Originally Posted by newbie11
    Might as well take 3 year fixed avg 1.42
    Aiyo... this option wasnt mentioned riiiight
    click: 🏢shoeboxmickeymousehouse 🏢

Similar Threads

  1. Interest rates here 'to rise at moderate pace'
    By reporter2 in forum Finance and Legal
    Replies: 0
    -: 11-12-15, 15:35
  2. Replies: 42
    -: 13-06-14, 07:32
  3. What to buy as interest rates are set to rise
    By reporter2 in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 15-05-14, 18:47
  4. What to buy as interest rates are set to rise
    By leesg123 in forum Coffeeshop Talk
    Replies: 5
    -: 11-05-14, 17:39
  5. Don't expect interest rates to rise: Experts
    By mr funny in forum Finance and Legal
    Replies: 1
    -: 23-11-09, 14:48

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •