Introduction
If you are a homeowner in Singapore, you may be looking for ways to reduce your outstanding home loan balance. One option available to you is partial repayment of your DBS home loan. This can help you save money on interest payments and reduce the overall duration of your loan.
Understanding DBS Partial Repayment
DBS partial repayment allows you to make an ad-hoc repayment to reduce your outstanding loan balance. The minimum amount for partial repayment is S$10,000, in multiples of S$1,000. The deduction date will be one month after the partial repayment request has been submitted. Prepayment charges and/or clawback of fees will apply if the repayment is made within the commitment period.
Eligibility and Requirements
To be eligible for DBS partial repayment, you must have an existing home loan with DBS. You must also have sufficient funds to make the partial repayment and meet the minimum repayment amount. Additionally, you must ensure that you are not making the partial repayment during the lock-in period, as this may result in prepayment charges and/or clawback of fees.
Key Takeaways
- DBS partial repayment allows you to reduce your outstanding home loan balance, saving you money on interest payments and reducing the overall duration of your loan.
- To be eligible for DBS partial repayment, you must have an existing home loan with DBS, sufficient funds to make the partial repayment, and ensure that you are not making the partial repayment during the lock-in period.
- The minimum amount for partial repayment is S$10,000, in multiples of S$1,000, and prepayment charges and/or clawback of fees will apply if the repayment is made within the commitment period.
Understanding DBS Partial Repayment
If you have a home loan with DBS and want to reduce your outstanding balance, you can consider making a partial repayment. This option allows you to make an ad-hoc repayment of at least S$10,000, in multiples of S$1,000, to your loan account.
Benefits of Partial Repayment
Making a partial repayment can help you reduce the amount of interest you pay over the loan tenure. By reducing your outstanding balance, you also reduce the interest charged on the remaining amount. This can result in a lower monthly repayment amount and a shorter loan tenure.
Additionally, making a partial repayment can also help you save money in the long run. By reducing the outstanding balance, you reduce the interest charged over the loan tenure, which can result in significant savings.
Partial Repayment Process
To make a partial repayment on your DBS home loan, you can submit an application via the digibot. The minimum amount for partial repayment is S$10,000, in multiples of S$1,000. The deduction date will be one month after the partial repayment request has been submitted.
It’s important to note that prepayment charges and/or clawback of fees will apply if the repayment is made within the commitment period. Additionally, if you have a fixed interest rate home loan, there may be a prepayment fee charged if you make a partial repayment.
In conclusion, making a partial repayment on your DBS home loan can help you save money and reduce your loan tenure. However, it’s important to understand the terms and conditions of your loan agreement before making a partial repayment.
Eligibility and Requirements
If you are considering making a partial repayment on your DBS home loan, there are a few eligibility criteria and requirements you should be aware of.
Age Criteria
To be eligible for a partial repayment, you must be at least 21 years old and not more than 65 years old at the end of the loan tenure. This age requirement applies to both the main borrower and the co-borrower, if any.
Loan Type Specifications
DBS offers a range of home loan products, including fixed and variable rate loans. However, partial repayments are only allowed for certain types of loans. If you have a fixed rate loan, you will not be able to make a partial repayment until the end of the lock-in period. On the other hand, if you have a floating rate loan, you can make a partial repayment at any time without incurring any penalty fees.
Minimum Repayment Amount
The minimum amount you can repay is S$10,000, and the repayment must be made in multiples of S$1,000. You can choose to make the repayment via cash or CPF funds. If you choose to pay in cash, the repayment amount will be deducted from your loan servicing account. If you choose to use CPF funds, you will need to log in to the CPF website and select the option to use your funds for home loan repayment.
Overall, making a partial repayment on your DBS home loan can help you reduce your outstanding balance and save on interest charges. However, it is important to understand the eligibility criteria and requirements before submitting your request. By meeting these requirements, you can ensure that your partial repayment is processed smoothly and without any issues.
How to Submit a Partial Repayment
If you have a home loan with DBS and would like to make a partial repayment, there are two ways to submit your request: online through Digibot or manually through the bank. Here’s how you can do it:
Online Submission through Digibot
Submitting a partial repayment request through Digibot is a fast and convenient way to do it. Here are the steps:
- Launch Digibot and complete the authentication process using your iBanking login or card and PIN.
- Select “Submit new request”.
- Verify that your contact information with the bank is up to date and select “Yes”.
- Select “Partial Repayment”.
- Choose the loan account that you would like to make the partial repayment on.
- Enter the amount you would like to repay.
- Review and confirm your submission.
After submitting your request, you can check the application status on Digibot to see if it has been approved.
Manual Submission Process
If you prefer to submit your request manually, you can do so by visiting a DBS branch. Here are the steps:
- Bring along the required documents (see below).
- Inform the bank officer that you would like to make a partial repayment.
- Choose the loan account that you would like to make the partial repayment on.
- Enter the amount you would like to repay.
- Review and sign the application form.
After submitting your request, you can check the application status on DBS’ website or by contacting their customer service hotline.
Required Documents
When submitting a partial repayment request, you will need to provide the following documents:
- A copy of your NRIC or passport
- A copy of your latest CPF statement (if you are using CPF funds for repayment)
- A copy of your latest home loan statement
Make sure to bring the original documents for verification purposes.
Submitting a partial repayment request with DBS is easy and straightforward. Whether you choose to do it online or manually, make sure to have all the required documents ready to ensure a smooth and hassle-free process.
Financial Implications
When it comes to partial repayment of your home loan with DBS Singapore, there are several financial implications that you should be aware of. Understanding these implications can help you make an informed decision about whether partial repayment is the right choice for you.
Understanding Interest Savings
One of the most significant benefits of partial repayment is the potential to save on interest payments over the life of your loan. By reducing your outstanding loan balance, you can reduce the amount of interest that accrues on your loan. This can result in significant savings over time, particularly if you have a long loan term or a high interest rate.
Fees and Charges
Before making a partial repayment, it’s important to be aware of any fees or charges that may apply. DBS Singapore may charge a prepayment fee if you repay your loan in full before the end of the lock-in period. However, partial repayment may not incur any prepayment charges. Additionally, there may be a loan servicing account fee if you choose to make regular partial repayments.
It’s also important to be aware of any clawback of fees that may apply. If you received any promotional offers or discounts when you took out your loan, these may be clawed back if you make partial repayments.
In conclusion, partial repayment of your home loan with DBS Singapore can have significant financial implications. Understanding these implications can help you make an informed decision about whether partial repayment is the right choice for you. By reducing your outstanding loan balance, you can potentially save on interest payments over the life of your loan. However, it’s important to be aware of any fees or charges that may apply, as well as any clawback of fees that may occur.
After Partial Repayment
Once you have made a partial repayment towards your DBS Home Loan, there are several things to consider. Here are some important points to keep in mind:
Adjusting Monthly Instalments
After making a partial repayment, your monthly instalment amount will be adjusted accordingly. You will receive a notification letter within two weeks after the payment deduction date, informing you of the revised monthly instalment. This will help you to manage your finances better, as you will have a clearer idea of your monthly expenses.
Loan Tenure Changes
If you have made a significant partial repayment, you may be able to shorten your loan tenure. This means that you will be able to pay off your loan faster than originally planned. However, please note that there may be fees associated with changing your loan tenure. You should consult with your DBS relationship manager to understand the full implications of changing your loan tenure.
Title Deed and Legal Considerations
When you make a partial repayment, the outstanding loan balance on your home loan will decrease. This means that the title deed of your property will also need to be updated to reflect the new outstanding loan balance. There may be legal fees associated with updating the title deed, so you should be prepared for this additional cost.
It is important to note that the information provided in this article is general in nature, and may not apply to your specific circumstances. You should always consult with your DBS relationship manager to understand the full implications of making a partial repayment on your home loan package.
Frequently Asked Questions
How can I contact DBS to discuss partial repayment options for my mortgage?
If you have any questions about partial repayment options for your DBS home loan, you can contact the bank’s customer service team at 1800 111 1111. They will be able to provide you with further information on the options available to you, and help you decide which option is best for you.
Where can I find a calculator to estimate my savings from making a partial repayment on my DBS loan?
DBS offers a calculator on their website that can help you estimate your savings from making a partial repayment on your home loan. You can access the calculator by visiting the bank’s website and navigating to the “Home Loan” section.
What fees are associated with making a partial repayment on my DBS home loan?
If you make a partial repayment on your DBS home loan, you may be subject to prepayment charges and/or clawback of fees if the repayment is made within the commitment period. The exact fees associated with making a partial repayment will depend on the terms of your loan agreement with DBS.
Can I utilise my CPF funds for a partial repayment of my home loan with DBS?
Yes, you can use your CPF funds to make a partial repayment on your home loan with DBS. To do so, you will need to key in your partial repayment CPF amount and indicate the deduction date as 5 working days before the processing date of your partial repayment request.
What is the process for making a partial payment towards my HDB loan?
To make a partial payment towards your HDB loan with DBS, you will need to submit a request for partial repayment via the bank’s digibot. The minimum amount for partial repayment is $10,000, in multiples of $1,000. The deduction date will be one month after the partial repayment request has been submitted.
What are the implications of early repayment on my mortgage in Singapore?
If you choose to make an early repayment on your mortgage in Singapore, you may be subject to prepayment charges and/or clawback of fees if the repayment is made within the commitment period. It is important to carefully consider the terms of your loan agreement with DBS before making an early repayment, to ensure that you fully understand the implications.