DBS launches mortgage product to help shield borrowers from rising interest rates
THE public's fears that interest rates could start rising have prompted DBS Bank to introduce a product offering to help protect homeowners in case their instalments start increasing.
The DBS Interest Guard acts like an insurance policy for new and existing mortgages that are pegged to the interbank rate, which will increase if global rates rise.
The product means a borrower can cap his interest rate for a set period no matter what happens to rates in the open market.
It will cost from $5 to $23 per month for every $100,000 of loan depending on the form of protection picked.