Citibank Home Loan Singapore | Attractive Home Loan Packages Singapore

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Purchasing a home is a life-changing event. But first, you must select a home loan to finance your property purchase. Choosing a home loan isn’t as thrilling as selecting furniture for your new home, but we’re here to help. In this blog, read about Citibank Home Loan in Singapore. 

Fixed-rate home loans, such as Citibank’s, allow you to lock in your interest rates for a set period of time, eliminating the need to worry about swings for a few years. In exchange, you will pay significantly higher interest rates than your floating rate loan peers, at least at the outset of the loan. In other words, stability comes at a cost. Citibank’s adjustable-rate loans have attractive interest rates right now, but they skyrocket after the third year. As a result, if you want to refinance in the future, they are worth considering.

Citibank Home Loan in Singapore

Citibank BUC house loans for under-construction buildings (floating)

Citibank offers two house loan packages for new developments, whether HDB or private. The package you receive is mostly determined by the loan amount, with loans of more than $1.5 million obtaining somewhat preferred rates. Both are tied to the SIBOR rate and begin with SIBOR + 0.20 percent in the first year, SIBOR + 0.25 percent in the second year, and SIBOR + 0.45 percent (or 0.40 percent for loans over $1.5 million) in the third year. You will pay SIBOR + 0.60 percent in the fourth and future years. This means that you will pay pretty attractive interest rates at first, with rates ranging from 2.12 percent to 2.33 percent, but these rates will rise over time.

Citibank home loan (floating/fixed 2-3 years) for completed properties

Citibank provides a floating rate home loan tied to SIBOR and a fixed rate home loan for completed properties. The fixed-rate house loan allows you to lock in rates ranging from 1.98 percent to 2.03 percent for two years (available for both HDB and private property) or from 2.04 percent to 2.09 percent for three years (private property only).

These are highly competitive interest rates when compared to what other banks are offering; however, keep in mind that after the fixed time, your interest rates will be pegged to SIBOR. As a result, be prepared to refinance later. Interest rates on the floating rate packages range from 2.11 percent to 2.20 percent. These starting interest rates are competitive with what other banks are now offering, but they grow very rapidly over time, from SIBOR + 0.35 percent in the first year to SIBOR + 0.45 percent in the second year to a stunning SIBOR + 0.70 percent in the third year. So, once again, be ready to refinance!

Citibank Home Loan in Singapore

Should you go with a Citibank home loan that is floating or fixed?

When deciding between fixed and floating home loan packages, the main factor to consider is whether you prefer to pay lower interest rates now but be subject to interest rate fluctuations (in which case you would choose a floating rate package) or pay a relatively high-interest rate now in order to lock in a fixed interest rate later (in which case you would opt for a fixed interest rate package).

If you believe interest rates will climb, you’ll be more likely to choose a fixed package. If you believe interest rates will continue low in the near future, you would be better off with a floating package.

Citibank is currently offering low starting interest rates on both fixed and adjustable-rate home loan packages. The problem is that these rates skyrocket in the third or fourth year.

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