Home Loan for BUC

[ironmanpower]

I've just recently signed an OTP for a new launch and I'm shopping around for home loan.

It appears that Citibank has the lowest rate right now for BUC home loans. It allows the flexibility to switch to to any SIBOR base rates at anytime but there is a lock in period of 2 years. DBS 3 months SIBOR has a slightly higher interest.

Is it a no brainer to go for the citibank 1 month SIBOR?

Floating Rates: 1 Month SIBOR (Private Properties and ECs under Progressive Payment Scheme)

1.5% penalty for partial or full prepayment during first 2 years
Flexibility to switch between 1/3/6/12mth SIBOR base rates at anytime
Not available for cash-out refinancing
No lock-in penalties if full prepayment made within first 2 years is due to sale of propertyLock in period of 2 years


Year 1-3

1-mth SIBOR (http://www.smartloans.sg/wizard/homeloan/step4#)
+ 0.90%
= 1.21%

Year 4 onwards
1-mth SIBOR (http://www.smartloans.sg/wizard/homeloan/step4#)
+ 1.15%
= 1.46%


how is this comparable to DBS 3 Months floating rate SIBOR? There is no lock in period for DBS

Floating Rates: 3 Month SIBOR

No penalty for partial or full prepaymentYear 1-3

3-mth SIBOR (http://www.smartloans.sg/wizard/homeloan/step4#)
+ 0.90%
= 1.27%

Year 4 onwards

3-mth SIBOR (http://www.smartloans.sg/wizard/homeloan/step4#)
+ 1.25%
= 1.63%

[DC33_2008]

The spread really gone up quite a bit.

[Superstar1]

1 month sibor more volatile compared to 3 rate.

[BigBoy]

The spread really gone up quite a bit.
Concur. I got mine (CitiBank also) last year, 1 Mth Sibor + 0.75 from yr 1 onwards.

[newbie11]

how does lock in affect you? do you intend to prepay or redeem loan within lock in period?

I don't think 1m sibor is volatile than 3m sibor, unless you look into the micro movements of 0.00X%.

depending on your loan amt and prop type, you may find a slightly lower rates. And since it's BUC, you can also consider a step-down loan if loan amt is met, such as this (http://www.findahomeloan.sg/package-details?fahlpid=155).

Our company is also running a promo for Trilinq, Sennett Residence and D'Nest with rewards for our customers.

[mcmlxxvi]

The spread really gone up quite a bit.

Eff Int rate rose over 30% over the last year or two and pple still buying like no tomorrow....

[Mbanker]

Hi TS,

If im not mistaken, DBS and most other banks usually offer a free conversion upon TOP and Citi does not. That would be something you might wan to look at.

Cheers!

[cnud]

BUC won't activate your loan until maybe 2-3 years later depending on how many % you loan.

If no free conversion, later when interest rates rises....

[DC33_2008]

How about those who has taken loan package two years ago with free switches? Does the new rules on tenure kicks in if you make a transfer?
BUC won't activate your loan until maybe 2-3 years later depending on how many % you loan.

If no free conversion, later when interest rates rises....

[Mbanker]

The new CM should not affect those with free conversions as offer was already signed previously.

[newbie11]

BUC won't activate your loan until maybe 2-3 years later depending on how many % you loan.

If no free conversion, later when interest rates rises....

if int rate rises, then will there be a better one to convert?

[cnud]

if int rate rises, then will there be a better one to convert?

At least can do some switch and not be pulled by the nose by this one bank.

[BigBoy]

At least can do some switch and not be pulled by the nose by this one bank.
WAre we talking about conversion or refinancing? Conversion always with the same bank mah::doh: citibank dont offer free conversion after TOP? Mine do.

[ironmanpower]

Yeah. I realized the local banks offer free conversion upon TOP. Which means that I do not need to incur any refinancing fees should I decide to choose a fixed interest rate plan.

I will talk to the local banks then.

[Shanhz]

Yeah. I realized the local banks offer free conversion upon TOP. Which means that I do not need to incur any refinancing fees should I decide to choose a fixed interest rate plan.

I will talk to the local banks then.

my SCB loan also got. not just limited to local banks

[cnud]

WAre we talking about conversion or refinancing? Conversion always with the same bank mah::doh: citibank dont offer free conversion after TOP? Mine do.

Whether conversion or refin, if the choice is given, isn't it better for the consumer?