Help to better manage home loan as rates rise

Mr Amos Koh with his dog Louie in his Bukit Batok flat. He says that after getting a fixed-rate package, the monthly instalment for his home has been reduced by $59 (from $1,567 to $1,508).
Mr Amos Koh with his dog Louie in his Bukit Batok flat. He says that after getting a fixed-rate package, the monthly instalment for his home has been reduced by $59 (from $1,567 to $1,508).

DBS scheme helps flat owner get peace of mind with switch to fixed-rate package

When public servant Amos Koh bought his four-room Housing Board flat in Bukit Batok in 2014 for $470,000, he took up a floating interest rate home loan pegged to the DBS Singapore Dollar Fixed Deposit rate, plus an additional component - a rate of 1.2 per cent which increases each year. By this month, this component will have increased to 1.25 per cent.

Mr Koh, 39, was fortunate that DBS Bank has a programme that engages customers whose fixed-rate package is expiring, so they can explore switching to another fixed-rate package. By doing so, they can better manage their home loan commitments when rates rise.

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A version of this article appeared in the print edition of The Sunday Times on February 25, 2018, with the headline 'Help to better manage home loan as rates rise'. Print Edition | Subscribe