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Citibank Home Loan Review Singapore 2018 – Which Mortgage to Choose from Citibank

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Peter Lin

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Citibank home loan packages are a nice reminder of how things used to be in the home loan market, with very competitive SIBOR-linked home loan rates that increased dramatically after the third year, and fixed deposit packages that truly charge you a premium for the security and stability they bring.

If you’re buying a new property and looking for a Citibank home loan, here are the best packages they offer, whether your property is uncompleted or completed.

 

Citibank Home Loan for a private property, Building under Construction, with a purchase price of $625,000, loan tenure of 30 years

Home Loan Package Estimated Monthly Instalment Notes
Year 1: 1-mth SIBOR + 0.30%
Year 2: 1-mth SIBOR + 0.35%
Year 3: 1-mth SIBOR + 0.40%
Thereafter: 1-mth SIBOR + 1.10%
$1,749 No lock-in

No penalty for partial or full prepayment

Flexibility to switch between 3/6/12mth SIBOR base rates anytime

1-mth SIBOR option not available to HDB

Interest offset feature applicable

*updated as of 15 March 2018

For a building under construction, Citibank only offers one type of home loan package. However, to qualify for it, your loan amount has to be at least $500,000. Citibank is also offering better rates for larger loan amounts.

The SIBOR-linked rate is rather appealing at first glance, with an extremely relatively low spread for the first three years. Citibank’s rates remain one of the most competitive SIBOR-linked home loan rates in the market today.

However, pegging it to the 1-month SIBOR may be a bit of a risk, as it means choosing a volatile reference rate that is sure to rise in the near future. Fortunately, you have the flexibility to switch to a much more stable SIBOR base rate at any time, though of course, you would be expected to pay a bit of a premium for that stability.

Don’t forget, you should definitely watch out for the sharp increase in the home loan rate after the third year. Make sure you’re ready to refinance long before that rate kicks in.

For uncompleted HDB properties: This Citibank housing loan package is not available for uncompleted HDB BTOs, unless it’s expected to be completed within 3 months.

 

Citibank Home Loan for a completed condominium unit, with a purchase price of $1,000,000, loan tenure of 30 years

Home Loan Package Estimated Monthly Instalment Notes
Year 1: 1-mth SIBOR + 0.30%
Year 2: 1-mth SIBOR + 0.35%
Year 3: 1-mth SIBOR + 0.35%
Thereafter: 1-mth SIBOR + 0.90%
$2,793 2-year lock-in

Flexibility to switch between 3/6/12-mth SIBOR base rates anytime; Switch to 1-mth SIBOR not allowed

Interest offset feature applicable

Year 1: 1.75%
Year 2: 1.80%
Thereafter: 1-mth SIBOR + 0.90%
$2,914 2-year lock-in

1.5% penalty for partial or full prepayment during first 3 years

*updated as of 15 March 2018

For completed properties, Citibank offers 2 home loan packages – a SIBOR-linked rate and a fixed rate. This essentially allows them to offer customers options that fit their needs and cashflow requirements.

The Citibank SIBOR-linked package is the best in the market right now, with the lowest spread offered by any bank. Do note, of course, that these rates are dependent on the size of the loan. The rates for a smaller loan won’t be as competitive, while a larger loan might earn you an even more attractive rate.

That said, Citibank’s most competitive rate involves a 2-year lock-in period, which may be a bit of a gamble since it is a SIBOR-linked package. That said, the flexibility to switch to another SIBOR base rate gives you the option to choose a more stable home loan rate, at an extra cost. If you’re going for a SIBOR-linked home loan package, you should definitely consider a Citibank mortgage loan.

Citibank’s fixed rate home loan, on the other hand, is a little less competitive. While it is not the lowest in the market, it’s definitely among the top 10 – which is not saying much, honestly.

The main problem with the fixed rate home loan package is the fact that it eventually becomes a rather costly SIBOR-linked package after the fixed period. This means you’ll almost definitely be looking at refinancing options after just two years. Just be prepared for that eventuality should you choose to go with a Citibank fixed rate home loan.

For completed HDB flats: The same Citibank housing loan packages are available for resale HDB flat purchases as well.

 

Should you go with a Citibank home loan package?

If you’re keen on a SIBOR-linked home loan package, definitely go with a Citibank home loan. The Citibank home loan rates are one of the lowest in Singapore right now. However, do take note that these rates are only for home loans of $500,000 or more, so your property may not be eligible for the low rates.

Only go with the Citibank fixed rate home loan packages if you’re prepared to refinance as soon as the lock-in period is up, as the rates jump quite significantly after 2 or 3 years.

Are you interested in applying for a Citibank home loan? Speak to one of our mortgage specialists to find out which bank is offering the best home loan in Singapore for your particular needs.

Looking for home loans from another bank? Here are the other home loan packages we’ve reviewed.

Best Home Loans Singapore (2018) – Most Affordable Housing Loans Reviewed

DBS Home Loan Reviews Singapore 2018

OCBC Home Loan Reviews Singapore 2018

UOB Home Loan Reviews Singapore 2018

BOC Home Loan Reviews Singapore 2018

Maybank Home Loan Review Singapore 2018

Standard Chartered Home Loan Review Singapore 2018 *COMING SOON*

Keep updated with all the news!

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Peter Lin

I am the poster boy for reinventing one's self. I've been a broadcast journalist, technical writer, banking customer service officer and a Catholic friar. My life experiences have made me the most cynical idealist you'll ever meet, which is why I'm also the co-founder of a local pop culture website. I believe ignorance is not bliss, and that money is the root of all evil only if you allow it to be.