Home Loans

Citibank Home Loan Review Singapore 2019 – Which Mortgage to Choose from Citibank

Citibank home loan packages seem to hark back to 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 rates that truly charge a premium. 

While their fixed rates are nothing to get all too excited about, their floating rate packages offer competitive rates, if only for the first couple of years.

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 BUC home loans for buildings under construction

Citibank offers 2 home loans for buildings under construction, work-in-progress HDB BTOs included. Both are floating rates.

Years Citibank BUC Floating Rate Home Loan (min. $500,000) Citibank BUC Floating Rate  Home Loan (min. $1.5 mil)
Year 1 1.96%
(1M Sibor + 0.20%)
1.96%
(1M Sibor + 0.20%)
Year 2 2.01%
(1M Sibor + 0.25%)
2.01%
(1M Sibor + 0.25%)
Year 3 2.21%
(1M Sibor + 0.45%)
2.16%
(1M Sibor + 0.40%)
Year 4 2.36%
(1M Sibor + 0.60%)
2.36%
(1M Sibor + 0.60%)
Thereafter 2.36%
(1M Sibor + 0.60%)
2.36%
(1M Sibor + 0.60%)
Benchmark Rate 1M Sibor : 1.76% 1M Sibor : 1.76%

*updated 1 February 2019 

The two are mainly differentiated by the minimum loan amount.

The first BUC home loan is has a minimum loan amount of $500,000, and the second BUC home loan is has a minimum of $1.5 million. For the latter, you get slightly preferential rates from the third year onwards.

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.

While pegging 1-month SIBOR carry a bit of a risk, you have the flexibility to switch to a much more stable SIBOR base rate within 6 months from TOP. SIBOR is also likely to become more attractive again thanks to the relatively low spread now and stabilising effect from the Federal Reserves

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.

The below estimated monthly instalments are calculated for buildings under construction of a loan amount of $500,000 (minimum), with a loan tenure of 30 years.

Home loan package Interest rates Estimated monthly instalment
Citibank BUC Floating Rate

(min. $500,000)

Year 1: 1.96% (1M SIBOR + 0.20%)
Year 2: 2.01% (1M SIBOR + 0.25%)
Year 3: 2.21% (1M SIBOR + 0.45%)
Thereafter: 2.36% (1M SIBOR + 0.60%)
$2,109
$2,121
$2,166
$2,199

*updated 1 February 2019 

 

Citibank home loans for completed properties (private or HDB resale) 

Swipe left to see all 5 home loans

Bank Citibank Fixed Rate (Below 500k) 2 Years Citibank Fixed Rate (Above 500k, Private only) 2 Years Citibank Fixed Rate  (Above 500k, Private only) 3 Years Citibank Floating Rate (Below 500k) 2 Years Citibank Floating Rate (Above 500k)
2 Years
Lock-in Period 2.68% 2.60% 2.75% 2.11%
(1m SIBOR + 0.35%)
2.06%
(1m SIBOR + 0.30%)
Year 1 2.68% 2.60% 2.75% 2.11%
(1m SIBOR + 0.35%)
2.06%
(1m SIBOR + 0.30%)
Year 2 2.66%
(1M SIBOR + 0.90%)
2.66%
(1M SIBOR + 0.90%)
2.75% 2.21%
(1m SIBOR + 0.45%)
2.16%
(1m SIBOR + 0.40%)
Year 3 2.66%
(1M SIBOR + 0.90%)
2.66%
(1M SIBOR + 0.90%)
2.61%
(1M SIBOR + 0.85%)
2.46%
(1m SIBOR + 0.70%)
2.41%
(1m SIBOR + 0.65%)
Year 4 2.66%
(1M SIBOR + 0.90%)
2.66%
(1M SIBOR + 0.90%)
2.61%
(1M SIBOR + 0.85%)
2.46%
(1m SIBOR + 0.70%)
2.41%
(1m SIBOR + 0.65%)
Thereafter 2.66%
(1M SIBOR + 0.90%)
2.66%
(1M SIBOR + 0.90%)
2.61%
(1M SIBOR + 0.85%)
2.46%
(1m SIBOR + 0.70%)
2.41%
(1m SIBOR + 0.65%)

*updated 1 February 2019

For completed properties, Citibank used to offer 2 types of home loan packages – a SIBOR-linked rate and a fixed rate. Now, all 5 home loans are pegged to the 1M SIBOR. 

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.

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.

As for the floating rate home loans, 2.06% is very competitive, but that’s only for the first 2 years.

There’s a legal subsidy of 0.2% of the loan amount (capped at $2,500) you can take advantage of right now if you want to sign up for a Citibank home loan.

 

Illustration: Financing a $1 mil private property with Citibank

Home loan package Home Loan Package Estimated Monthly Instalment
Citibank Fixed Rate (Above 500k, Private only) 2 Years Year 1: 2.60%

Year 2: 2.60%

Year 3: 2.66% (1M SIBOR + 0.90%)

Thereafter: 1-mth SIBOR + 0.90%

$3,002
Citibank Fixed Rate  (Above 500k, Private only) 3 Years Year 1: 2.75%

Year 2: 2.75%

Year 3: 2.75%

Thereafter: 1-mth SIBOR + 0.85%

$3,061
Citibank Floating Rate (Above 500k) 2 Years Year 1: 2.06% (1M SIBOR + 0.30%)
Year 2: 2.06% (1M SIBOR + 0.30%)
Year 3: 2.16% (1M SIBOR + 0.40%)
Year 4: 2.41% (1M SIBOR + 0.65%)
Thereafter: 2.41% (1M SIBOR + 0.65%)
$2,794
$2,794
$2,830
$2,917

*updated as of 1 January 2019

 

Should you go with a Citibank home loan package?

If you’re all set on a SIBOR-linked home loan package, definitely go with a Citibank home loan. The Citibank SIBOR home loan spreads 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 – Most Affordable Housing Loans Reviewed

DBS Home Loan Reviews Singapore

OCBC Home Loan Reviews Singapore

UOB Home Loan Reviews Singapore

BOC Home Loan Reviews Singapore

Maybank Home Loan Review Singapore

Standard Chartered Home Loan Review Singapore

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