SINGAPORE – A POSB home loan package with an all-in interest rate of 2.6 per cent, similar to the Housing Board’s concessionary home loan rate, will be extended to the end of December to allow for more sign-ups.
The package is part of $40 million worth of measures announced by DBS Bank/POSB on Saturday to help Singaporeans with the rising cost of living.
It is available to those with a monthly income of $2,500 and under. New HDB home owners and those who wish to refinance their HDB mortgages are eligible.
On Saturday, Deputy Prime Minister Lawrence Wong said dealing with the issue of the rising cost of living is a joint effort by the Government, businesses and community groups.
He said that while the Government has rolled out a number of support measures such as the Community Development Council vouchers – with more help to be made available in the coming months – businesses can also play a part in uplifting vulnerable and disadvantaged families.
“There will always be challenges in our nation-building journey. The Government will do more, but we can’t just rely on government efforts. We hope community groups will do their part, and we want companies to do their part too,” he said at a digital literacy roadshow held at West Coast Food Centre, organised by DBS/POSB in support of the Infocomm Media Development Authority’s Digital for Life movement.
“Working together, we can have every confidence that we can overcome every challenge.”
Speaking in both Mandarin and English, Mr Wong encouraged seniors to pick up more digital literacy skills – such as making e-payments using their cellphones – and to be better protected against scams.
DBS/POSB on Saturday said its support measures are aimed at helping Singaporeans defray everyday expenses, reduce mortgage payments and bolster savings.
The 2.6 per cent interest rate loan package is targeted at those earning less than $2,500 a month, as a recent DBS study found those in this income bracket to be facing more financial distress, DBS said.
The expenses of that group outpaced income growth by 1.2 times, with insufficient savings compounding cash-flow woes. Their savings can last them for less than 1½ months, which is well below the recommended range of three to six months, said the bank.
Those who take up the home loan package will get a one-year complimentary fire mortgage insurance plan by Chubb Insurance.
Those earning $2,500 and under can also receive a monthly transport rebate of up to $20 if they are among the first 100,000 people to sign up for a transport rebate scheme. They will need to spend $80 every month on their DBS/POSB debit cards to get the rebate.
Today, eight in 10 people in this income bracket already spend more than $80 a month on groceries and shopping, said DBS.
Low-income and gig workers on the DBS Multiplier high-yield savings programme will also have their interest rate trebled to 1.8 per cent on higher balances.
These measures come on top of a $1 billion commitment announced by DBS on Friday, a sum that will go out over the next 10 years, starting in 2024, to programmes that support low-income and underprivileged families in Singapore and the bank’s other key markets.
Mr Wong said the initiatives by DBS/POSB are an example of its commitment to not just do well as a company, but also do good and be a good corporate citizen contributing to Singapore’s success.
Mr Han Kwee Juan, group executive and Singapore country head of DBS, said on Saturday that home loans and savings are two key areas where people could benefit from more assistance. “When we look at how we can help lower-income families, it is important to help them stretch their dollar and alleviate some of the financial stress.”
