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Thread: Home Loan for BUC

  1. #1
    Join Date
    Nov 2010
    Posts
    33

    Default Home Loan for BUC

    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 property
    Lock in period of 2 years


    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
    • No penalty for partial or full prepayment
    Year 1-3

    3-mth SIBOR
    + 0.90%
    = 1.27%

    Year 4 onwards

    3-mth SIBOR
    + 1.25%
    = 1.63%

  2. #2
    Join Date
    Nov 2008
    Posts
    9,217

    Default

    The spread really gone up quite a bit.

  3. #3
    Join Date
    Jan 2013
    Posts
    44

    Default

    1 month sibor more volatile compared to 3 rate.

  4. #4
    Join Date
    Apr 2012
    Posts
    89

    Default

    Quote Originally Posted by DC33_2008
    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.

  5. #5
    Join Date
    Apr 2011
    Posts
    1,099

    Default

    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.

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

  6. #6
    Join Date
    Feb 2009
    Location
    峨眉山
    Posts
    5,512

    Default

    Quote Originally Posted by DC33_2008
    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....
    click: 🏢shoeboxmickeymousehouse 🏢

  7. #7
    Join Date
    Jul 2011
    Posts
    9

    Default

    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!

  8. #8
    Join Date
    May 2012
    Posts
    928

    Default

    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....

  9. #9
    Join Date
    Nov 2008
    Posts
    9,217

    Default

    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?
    Quote Originally Posted by 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....

  10. #10
    Join Date
    Jul 2011
    Posts
    9

    Default

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

  11. #11
    Join Date
    Apr 2011
    Posts
    1,099

    Default

    Quote Originally Posted by 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....
    if int rate rises, then will there be a better one to convert?

  12. #12
    Join Date
    May 2012
    Posts
    928

    Default

    Quote Originally Posted by newbie11
    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.

  13. #13
    Join Date
    Apr 2012
    Posts
    89

    Default

    Quote Originally Posted by cnud
    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: citibank dont offer free conversion after TOP? Mine do.

  14. #14
    Join Date
    Nov 2010
    Posts
    33

    Default

    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.

  15. #15
    Join Date
    Apr 2012
    Posts
    1,677

    Default

    Quote Originally Posted by 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.
    my SCB loan also got. not just limited to local banks
    There is no good or bad location. There is only good or bad price.

  16. #16
    Join Date
    May 2012
    Posts
    928

    Default

    Quote Originally Posted by BigBoy
    WAre we talking about conversion or refinancing? Conversion always with the same bank mah: 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?

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