DBS raises 2-year fixed home loan rate to 2.75% per annum, highest among local banks

DBS has just raised its rates on all home loan packages to 2.75 per cent per annum, placing it the highest among the trio of local banks.

This comes after both UOB and OCBC raised rates on their home loan packages. OCBC and UOB’s fixed rates for 2-year home loan packages are at 2.65 per cent per annum.

About 3 months ago, the DBS rate was 1.65 per cent for a 2-year fixed loan and 1.85 per cent for 3-year loans.

The higher interest rates come in an economic climate where most seem to be expecting further rate hikes from the US Federal Reserve after Fed chair Jerome Powell’s indication that more of such hikes may be on the cards in the near future. Singapore, being a small and open economy, is highly susceptible to influences by global market movements. This in turn greatly affects its domestic interest rates.

Representatives from local banks have advised consumers to review affordability before committing to their home purchases amid rising interest rates.