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View Full Version : DBS product guards against interest rates rise


indomie
31-07-13, 20:19
Jul 31, 2013 - PropertyGuru.com.sg
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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.
newbie11
31-07-13, 20:29
It's only on Sibor. Wonder who will take up? Banks do not offer options to lose money
indomie
31-07-13, 20:44
If u take on the insurance, the most u pay for the next 3 years till 2016 is 1.7% approximately.
mcmlxxvi
31-07-13, 21:12
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.
Arcachon
31-07-13, 21:28
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.
mcmlxxvi
31-07-13, 22:06
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!
newbie11
31-07-13, 22:22
$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
radha08
31-07-13, 22:46
banks love to prey on peoples ignorance so please do your own homework:cool:
mcmlxxvi
01-08-13, 08:16
Might as well take 3 year fixed avg 1.42

Aiyo... this option wasnt mentioned riiiight