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.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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