$DBS GROUP HOLDINGS LTD(D05.SI)$I'm sure most of you here would have seen the news that the local banks are increasing the interest rate for the housing loan. 

DBS, Singapore's largest lender, is raising the rates for its two- and three-year fixed rate packages to 2.75 per cent. Similarly, UOB raised the rate on its three-year fixed rate package to 3.08 per cent per annum, up from 2.8 per cent previously.

We have seen crazy buying spree for the HDB open market in the last few years and I'm sure most people would have switched over to bank loans (to take advantage of the low interest rate of 1+%). Now, the tide has turned. Too bad, it is impossible to take up housing loan from HDB again, and most home-buyers would have to suck thumb and pay for the higher interest rates. A typical loan duration for repayment of housing loan is ~25 years. If you have just switched to a bank loan recently, you will now need to worry about the increasing interest rate for your housing loan. 

Just a quick reference, for a $500,000 housing loan over a period of 25 years.

1.5% p.a = monthly instalment of $2,000 (you would have paid a total of $600,000) 

2.75% p.a = monthly instalment of $2,307 (you would have paid a total of $692,100) 

The bank would earn an extra 15.35% based on this increment from 1.5% to 2.75%. 

As of now, the share price of local banks are on a decline despite rising interest rates. Like what most people would know, the market is like a voting machine in the short-term and a weighing machine in the long-term. As it's a 1-way switch from HDB loan to bank loan, would the increasing interest from housing loan boost the net income of our local banks?? Do let me know your thoughts!