what the best home loan package now?

**spikey69** · 30-11-10, 08:50

I am buying a place soon too...there are different rates for uncompleted and completed properties. CIMB and Maybank appear to have better rates for uncompleted properties whilst Citibank and HSBC are next with relatively similar rates. My first choice has always been Citibank, unless their rates are significantly worse off. My previous few loans have been with Citibank and I don't mind paying a bit more to ensure better customer service, which i do get from Citibank. They appear to be very customer service oriented, whether at their branch at Paragon, Orchard MRT or their credit card call centre or their home loan service.

oh yes...u got to do some quick research with smartloans.sg to find out who gives the better rates.

**taggy** · 30-11-10, 09:01

Originally Posted by x.season

No lock in 1-month SIBOR
Year 1: 1M SIBOR + 0.65%
Year 2: 1M SIBOR + 0.75%
Year 3: 1M SIBOR + 0.8%
Thereafter: 1M/3M/6M/12M SIBOR + 0.9%

- No free fire insurance and valuation subsidy

may i know is this citibank package ?

**x.season** · 30-11-10, 09:29

Originally Posted by spikey69

I am buying a place soon too...there are different rates for uncompleted and completed properties. CIMB and Maybank appear to have better rates for uncompleted properties whilst Citibank and HSBC are next with relatively similar rates. My first choice has always been Citibank, unless their rates are significantly worse off. My previous few loans have been with Citibank and I don't mind paying a bit more to ensure better customer service, which i do get from Citibank. They appear to be very customer service oriented, whether at their branch at Paragon, Orchard MRT or their credit card call centre or their home loan service.

oh yes...u got to do some quick research with smartloans.sg to find out who gives the better rates.

Hi spikey, in your opinion, do you think it is "negligible" difference between

A)
3M SIBOR + 0.75% throughout

and

B)
Year 1: 1M SIBOR + 0.65%
Year 2: 1M SIBOR + 0.75%
Year 3: 1M SIBOR + 0.8%
Thereafter: 1M/3M/6M/12M SIBOR + 0.9%

Thanks.

**spikey69** · 30-11-10, 10:11

Originally Posted by x.season

Hi spikey, in your opinion, do you think it is "negligible" difference between

A)
3M SIBOR + 0.75% throughout

and

B)
Year 1: 1M SIBOR + 0.65%
Year 2: 1M SIBOR + 0.75%
Year 3: 1M SIBOR + 0.8%
Thereafter: 1M/3M/6M/12M SIBOR + 0.9%

Thanks.

that looks like comparing citibank and hsbc...in the end, when the rates appear to be equal, then other considerations like customer service, freebie vouchers, responsiveness to queries, ease of internet banking etc.

But i note that you have not considered the lock in period/ no lock in period or flexibility to change between packages? For HSBC, they have this unique option where u can switch packages (under a no lock in package) anytime...whereas for citibank, u have to do it on a specific date (depending on 1/3/6/12 SIBOR).

**leslens** · 30-11-10, 14:11

Originally Posted by spikey69

that looks like comparing citibank and hsbc...in the end, when the rates appear to be equal, then other considerations like customer service, freebie vouchers, responsiveness to queries, ease of internet banking etc.

But i note that you have not considered the lock in period/ no lock in period or flexibility to change between packages? For HSBC, they have this unique option where u can switch packages (under a no lock in package) anytime...whereas for citibank, u have to do it on a specific date (depending on 1/3/6/12 SIBOR).

just to add that smartloans.sg is not updated
for example they are still quoting dbs to be 1.99 1.99 1.99 fixed 3 years

**pilatus** · 15-02-11, 22:32

Obtained a loan recently at the following rates (completed project; 2 yr lock-in):

Year 1: 1M SIBOR + 0.65%
Year 2: 1M SIBOR + 0.70%
Year 3: 1M SIBOR + 0.70%

**devilplate** · 15-02-11, 22:50

Originally Posted by pilatus

Obtained a loan recently at the following rates (completed project; 2 yr lock-in):

Year 1: 1M SIBOR + 0.65%
Year 2: 1M SIBOR + 0.70%
Year 3: 1M SIBOR + 0.70%

ooo....nvr take 1M sibor b4 even though is the lowest...interesting

**hopeful** · 16-02-11, 07:44

Originally Posted by pilatus

Obtained a loan recently at the following rates (completed project; 2 yr lock-in):

Year 1: 1M SIBOR + 0.65%
Year 2: 1M SIBOR + 0.70%
Year 3: 1M SIBOR + 0.70%

can i know which bank is that?

**rattydrama** · 16-02-11, 20:21

Originally Posted by pilatus

Obtained a loan recently at the following rates (completed project; 2 yr lock-in):

Year 1: 1M SIBOR + 0.65%
Year 2: 1M SIBOR + 0.70%
Year 3: 1M SIBOR + 0.70%

sounds good. which bank?

**amk** · 18-02-11, 14:12

obviously Citi

**hopeful** · 18-02-11, 17:05

will foreign banks like Citibank more likely to ask you to top up during bad times?

if yes, the local banks is safer even though if slightly higher rates.

**bargain hunter** · 18-02-11, 17:16

historically that is true.

Originally Posted by hopeful

will foreign banks like Citibank more likely to ask you to top up during bad times?

if yes, the local banks is safer even though if slightly higher rates.

**curio** · 22-05-11, 20:35

Has anyone done a recent comparison on which is the best home loan package for BUC project? any comments on OCBC internal board rate?

**rattydrama** · 22-05-11, 20:55

citi bank still the most competitive.
anything below 1.5% should be good bah.

**taggy** · 22-05-11, 20:59

Originally Posted by rattydrama

citi bank still the most competitive.
anything below 1.5% should be good bah.

citibank got 1 disadvantage (maybe not important),
if u want to do cash out, they will only do it at 70% of valuation. ocbc and dbs provide up to 80%. (3 months ago was like this, i dun noe now

)

**rattydrama** · 22-05-11, 21:06

Originally Posted by taggy

citibank got 1 disadvantage (maybe not important),
if u want to do cash out, they will only do it at 70% of valuation. ocbc and dbs provide up to 80%. (3 months ago was like this, i dun noe now

)

cash out and re-invest, you guys very smart leh. good point. learn something today.

usually for this kind, how they go about valuating the property? last transacted price of the same project?

**newbie11** · 22-05-11, 21:57

Originally Posted by curio

Has anyone done a recent comparison on which is the best home loan package for BUC project? any comments on OCBC internal board rate?

depend on which bcu proj la. some banks hv promo

**ysyap** · 22-05-11, 23:07

Originally Posted by curio

Has anyone done a recent comparison on which is the best home loan package for BUC project? any comments on OCBC internal board rate?

Not sure if this package by UOB is still available but I know I got one for BUC and it was pegged with the internal board rate which was slightly lower than all other packages with SIBOR or SOR for the 1st year. My BUC will be completed within the next 1 year and I was guaranteed a free change to the loan package upon TOP. So I got the lowest rate for 1st year and then choose again upon TOP. I suspect interest rates will remain low for the next 1 to 2 years looking at US market... just my 2 cents worth...

**fooblackie** · 24-05-11, 09:21

Originally Posted by ysyap

Not sure if this package by UOB is still available but I know I got one for BUC and it was pegged with the internal board rate which was slightly lower than all other packages with SIBOR or SOR for the 1st year. My BUC will be completed within the next 1 year and I was guaranteed a free change to the loan package upon TOP. So I got the lowest rate for 1st year and then choose again upon TOP. I suspect interest rates will remain low for the next 1 to 2 years looking at US market... just my 2 cents worth...

internal board rates are pretty risky. the "internal board" can decide to change the rates at its sole discretion..

dun be lured by the lower rate. think any more transparent rates pegged to sibor or sor are safer..

**ysyap** · 24-05-11, 09:26

Originally Posted by fooblackie

internal board rates are pretty risky. the "internal board" can decide to change the rates at its sole discretion..

dun be lured by the lower rate. think any more transparent rates pegged to sibor or sor are safer..

Thanks for the reminder... i'm aware and since my BUC will TOP within next 9 months and judging from the current low interest rates everywhere, it should be pretty safe... Will certainly change package by then and maybe it'll hit a new low by then and I'll just scoop up the remains...

**fooblackie** · 24-05-11, 09:45

Originally Posted by ysyap

Thanks for the reminder... i'm aware and since my BUC will TOP within next 9 months and judging from the current low interest rates everywhere, it should be pretty safe... Will certainly change package by then and maybe it'll hit a new low by then and I'll just scoop up the remains...

gd gd just dun be locked-up with no room to move. can always re-finance so keep a look out for gd deals.

i had super bad exp with UOB. even wrote in to complain until they offered me a fixed rate package. this was back in 2007. they increased the board rate when global int rate envir was gg down.

reason given to me was to cover their own expenses!

**ysyap** · 24-05-11, 10:30

Originally Posted by fooblackie

gd gd just dun be locked-up with no room to move. can always re-finance so keep a look out for gd deals.

i had super bad exp with UOB. even wrote in to complain until they offered me a fixed rate package. this was back in 2007. they increased the board rate when global int rate envir was gg down.

reason given to me was to cover their own expenses!

Hahaha.... maybe because of people like you they now scared so people like me will benefit...

**masterkey** · 25-05-11, 17:27

Originally Posted by taggy

citibank got 1 disadvantage (maybe not important),
if u want to do cash out, they will only do it at 70% of valuation. ocbc and dbs provide up to 80%. (3 months ago was like this, i dun noe now

)

Cash out = 2nd mortgage? or early redemption?

Thanks

**taggy** · 25-05-11, 17:49

Originally Posted by masterkey

Cash out = 2nd mortgage? or early redemption?

Thanks

er..yes, is like a 2nd mortgage loan on the property. Not early redemption.

see this: http://www.smartloans.sg/pages/cashoutrefinancing

**DC33_2008** · 25-05-11, 17:58

1 mth SOR is 0.175 today.

Originally Posted by taggy

er..yes, is like a 2nd mortgage loan on the property. Not early redemption.

see this: http://www.smartloans.sg/pages/cashoutrefinancing

**CondoSearch** · 10-06-11, 22:58

financial experts,

please can i get advise which bank loan offer i shall go with. seems many people anticipated of up trend interest, will the unlimited conversion make any sense at all...

here is the offer i got:

1. HSBC - 1mnth SIBOR+0.75% throughout, no lockin, 5years Fire Insurance but only 1 time conversion withn 6mnths after TOP.
2. Citibank - 1mnth SIBOR+0.75% throughout, 2 years lockin but given unlimited conversion feature.

The rest of features more or less the same ie Legal subsidy or valuation etc...

This is a home loan for BUC(building under construction). the property expected to top in 2014 0r 2015..

advise would be greatly appreciated...

**Fleur** · 10-06-11, 23:59

I think citibank does not provide any free fire insurance? I would pick hsbc.

**DC33_2008** · 11-06-11, 00:13

If going for 1mth SIBOR (0.31). Why not 3mth SOR(0.22) if both have not lock-in period.

**CondoSearch** · 11-06-11, 00:53

Thanks Fleur and DC33_2008, do you think Fire Insurance is better than unlimited free conversion, may i know your opinion on this please?

DC33_2008, I felt SOR very volatile compare to SIBOR hence prefer SIBOR(just my personal preference).

**DC33_2008** · 11-06-11, 00:59

It is no point having free conversion if the package given by the bank is not attractive as compared to other banks at that point in time. Fire insurance premium is only a couple of hundred dollars. The saving from the package will be more than this.

Originally Posted by CondoSearch

Thanks Fleur and DC33_2008, do you think Fire Insurance is better than unlimited free conversion, may i know your opinion on this please?

DC33_2008, I felt SOR very volatile compare to SIBOR hence prefer SIBOR(just my personal preference).

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