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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