DBS joins UOB and OCBC in increasing home loan rates
Singapore. In an effort to tame the effects of inflation, DBS recently got rid of its five-year fixed rate package for public housing apartment owners. The bank raised its two-year and three-year fixed rate packages to 2.75% per annum, displaying a 0.3 and 0.15 increase, respectively.
DBS mirrored the same price increase as local banking peers UOB and OCBC. This signals the effort of banks to curb inflation as borrowing costs continue to rise around the globe.
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Due to Singapore’s nature as a small and open economy, the country is highly susceptible to movements from the global market.
Banks are expected to continue increasing their interest rates as a response to US Federal Reserve chairman Jerome Powell indicating that more hikes may be imminent in the near future.
In May, Singapore’s home sales displayed great results and achieved their six-month high. This demand for housing proves the country’s rebounding economy.
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