Navigating Singapore’s Property Market and Accessing Start-up Financing: A Look at Mortgage Rates and DBS Temporary Bridging Loan

With inflation on the rise, the days of low mortgage rates in Singapore may be numbered. The property market in Singapore has seen a surge in sales and home prices, leading some experts to warn of a potential real estate bubble. Historically, interest rates tend to rise during recessions and continue to do so even after the recession ends.

Looking at the international market, both the UK and the US have recently experienced mortgage interest rates exceeding 6%. This global trend is likely to impact Singapore as well. Despite the global economic slowdown, Singapore’s property market has remained strong, with house prices increasing by 13.2% from the previous year. Borrowing costs in Singapore have risen, with the three-month average overnight rate in Singapore, which banks use to set mortgage rates, reaching about 2%.

However, there are also reasons why Singapore’s home loan interest rate may reach less than 6% in 2023. The Monetary Authority of Singapore (MAS) has tightened its monetary policy to curb inflation and ensure price stability. The resolution of the Russia-Ukraine war could also alleviate global supply chain disruptions and help stabilize inflation.

DBS Temporary Bridging Loan is a start-up-friendly loan offered by DBS Bank that allows young entrepreneurs to grow their businesses. One of the key advantages of this loan is its low minimum turnover and incorporation criteria, making it accessible to companies that have been in operation for less than two years.

Regarding charges, the DBS Temporary Bridging Loan offers competitive terms. The processing fees are 1% of the loan amount for existing DBS account holders and 1.5% for new customers. The annual interest rate is 4.5%, effective Singapore interest rate history, ensuring that the cost of borrowing remains manageable. Importantly, there is no lock-in period throughout the loan tenor, providing flexibility for borrowers, and no annual fees are charged.

To apply for the loan, certain eligibility criteria and documentation are required. This includes company operating account statements for the last six months, directors` and shareholders’ Notice of Assessments (NOA) for the last two years, the company’s financial report for the last two years, and directors’ and shareholders’ NRIC (front and back).

In conclusion, the property market in Singapore is experiencing a surge in sales and home prices, with experts warning of a potential real estate bubble. The rise in inflation and borrowing costs could increase mortgage interest rates, with the US and UK already experiencing rates exceeding 6%. Despite the uncertain economic outlook, dbs loan repayment offers start-ups an attractive financing option with competitive fees, flexibility, and a repayment period of up to five years. This loan could be the solution for young entrepreneurs to grow their businesses in these challenging times.