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)
Lock in period of 2 years
- 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 property
Year 1-3
1-mth SIBOR
+ 0.90%
= 1.21%
Year 4 onwards
1-mth SIBOR
+ 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
Year 1-3
- No penalty for partial or full prepayment
3-mth SIBOR
+ 0.90%
= 1.27%
Year 4 onwards
3-mth SIBOR
+ 1.25%
= 1.63%