Citibank 1M SIBOR + 0.65%

[CondoSearch]

please can someone advise which bank loan offer i shall go with. I'm not sure with the current interest rate situation where many people anticipated of up trend, will the unlimited conversation does make sense at all...

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)..

advise would be greatly appreciated...

[propertyguru]

please can someone advise which bank loan offer i shall go with. I'm not sure with the current interest rate situation where many people anticipated of up trend, will the unlimited conversation does make sense at all...

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)..

advise would be greatly appreciated...

Based on the information given, I would think the HSBC offer is better. Fire insurance over five years would be around $1k for a $1m property, and it's no lock-in at all. Citibank on the other hand offers you only unlimited conversion, but how many times are you likely to convert in the space of two years? Maybe once, and probably no more than twice over five years. You should however speak to Citibank about a better rate; I am not a priority customer (not Citigold), but I gave the mortgage broker the rates I had from other banks and asked him to match, and he was able to reduce the interest rate slightly and also offered shopping vouchers.

Ultimately, I went with Citibank because they have the best customer service.

[taggy]

Based on the information given, I would think the HSBC offer is better. Fire insurance over five years would be around $1k for a $1m property, and it's no lock-in at all. Citibank on the other hand offers you only unlimited conversion, but how many times are you likely to convert in the space of two years? Maybe once, and probably no more than twice over five years. You should however speak to Citibank about a better rate; I am not a priority customer (not Citigold), but I gave the mortgage broker the rates I had from other banks and asked him to match, and he was able to reduce the interest rate slightly and also offered shopping vouchers.

Ultimately, I went with Citibank because they have the best customer service.

i m with citibank for 2yrs liao, not once did i convert the sibor months, stayed with 1mth sibor since it is cheapest.

[propertyguru]

i m with citibank for 2yrs liao, not once did i convert the sibor months, stayed with 1mth sibor since it is cheapest.

Yeah, the 1mth SIBOR is the best rate, and one should probably never switch since it's always lower than the 3mth, 6mth and 12mth SIBOR. It would only be worthwhile if the SIBOR rates jump very suddenly and you want to stay locked-in.

My current spread is 0.65% so I am paying 1% since that's the lowest effective interest rate at Citibank.

[propertyguru]

i m with citibank for 2yrs liao, not once did i convert the sibor months, stayed with 1mth sibor since it is cheapest.

By the way, I don't think Citibank is referring to the switching of SIBOR months. As far as I know, that's free; you just need to give them a month's notice.

[taggy]

By the way, I don't think Citibank is referring to the switching of SIBOR months. As far as I know, that's free; you just need to give them a month's notice.

ok paisei

[ysyap]

Since yours is a BUC, and most bank can match 1% for at least the first year or even the first two years then can change plan upon TOP, you might also want to explore local banks. Some are offering very competitive rates too. Any particular reason why you're sticking to these two banks only?

[CondoSearch]

Based on the information given, I would think the HSBC offer is better. Fire insurance over five years would be around $1k for a $1m property, and it's no lock-in at all. Citibank on the other hand offers you only unlimited conversion, but how many times are you likely to convert in the space of two years? Maybe once, and probably no more than twice over five years. You should however speak to Citibank about a better rate; I am not a priority customer (not Citigold), but I gave the mortgage broker the rates I had from other banks and asked him to match, and he was able to reduce the interest rate slightly and also offered shopping vouchers.

Ultimately, I went with Citibank because they have the best customer service.

propertyguru, thank you for the advise. The package I mentioned is the best they can give for BUC ( and with many rounds of discussion), hence if nothing citibank can do better then HSBC seems to be a better choice to go with.

Thanks a lot for all the advise and the rest to.,

[CondoSearch]

Since yours is a BUC, and most bank can match 1% for at least the first year or even the first two years then can change plan upon TOP, you might also want to explore local banks. Some are offering very competitive rates too. Any particular reason why you're sticking to these two banks only?

ysyap, thanks for your input. After few searchs for bank loan, most of other banks offer either SOR, 3mnth SIBOR or fixed with low spread for 1st 2years and high rate after 3rd year which most of my loan disbursement will be after 3rd year thus decided to go with the 2banks I mentioned.

[ysyap]

ysyap, thanks for your input. After few searchs for bank loan, most of other banks offer either SOR, 3mnth SIBOR or fixed with low spread for 1st 2years and high rate after 3rd year which most of my loan disbursement will be after 3rd year thus decided to go with the 2banks I mentioned.

That means your BUC will only TOP after 3 or more years and not within next 2 years? If TOP is early, can just grab any deal that offers super low interest now and fix for 1 year then change upon TOP... absolutely no risk with current super low interest rate which will likely persist for next one year at the bare minimum. That was what I did since my BUC will TOP is less than 1 year's time!!! Got a really good deal... much lower than 1% for 1st year! Then I'll change when TOP!

[CondoSearch]

That means your BUC will only TOP after 3 or more years and not within next 2 years? If TOP is early, can just grab any deal that offers super low interest now and fix for 1 year then change upon TOP... absolutely no risk with current super low interest rate which will likely persist for next one year at the bare minimum. That was what I did since my BUC will TOP is less than 1 year's time!!! Got a really good deal... much lower than 1% for 1st year! Then I'll change when TOP!

Yes, you indeed got a very good deal and good buy for your property too I believe. For me, HSBC rate is the best I can get so far..anyway, with all your guys advise, it help me to make a better inform decision after ponder about it for awhile especially on Citibank unlimited conversion as I not sure if this make sense...seems like not really matter from the advise so far... Thanks man.

[hopeful]

Yeah, the 1mth SIBOR is the best rate, and one should probably never switch since it's always lower than the 3mth, 6mth and 12mth SIBOR. It would only be worthwhile if the SIBOR rates jump very suddenly and you want to stay locked-in.

My current spread is 0.65% so I am paying 1% since that's the lowest effective interest rate at Citibank.

your citibank minimum rate is 1%? my relative's recent mortage minimum is 0.85%.

[propertyguru]

your citibank minimum rate is 1%? my relative's recent mortage minimum is 0.85%.

Well, that was the minimum I got. Good for your relative. Maybe I am not a priority customer.

[CondoSearch]

Well, that was the minimum I got. Good for your relative. Maybe I am not a priority customer.

Propertyguru, is your loan is for TOP or BUC(when will it TOP?)?

Citibank said they can give 1mnth SIBOR+0.65 only for buc property that not > 6mths to TOP...as for HSBC seems to have no offer for this rate so far ...would you mind to share?

[Fleur]

Propertyguru, is your loan is for TOP or BUC(when will it TOP?)?

Citibank said they can give 1mnth SIBOR+0.65 only for buc property that not > 6mths to TOP...as for HSBC seems to have no offer for this rate so far ...would you mind to share?

What do you mean about hsbc? They cannot offer you those rates? What is citibank's rate for buc property?

[propertyguru]

Propertyguru, is your loan is for TOP or BUC(when will it TOP?)?

Citibank said they can give 1mnth SIBOR+0.65 only for buc property that not > 6mths to TOP...as for HSBC seems to have no offer for this rate so far ...would you mind to share?

My loan is for TOP. I already had a Citibank loan (1% + 1mth SIBOR, no lock-in), but I found out earlier this year that Citibank was offering 0.65% + 1mth SIBOR, so I called up the mortgage department and asked to refinance. At first they offered me 0.75%, but after more negotiations, they reduced it to 0.65%. However, I am now locked-in for a couple of years if I recall correctly, which I accepted because I figure I won't sell in the next couple of years and I expect interest rates to remain low until the end of next year.

What you should do is bring the HSBC offer to them and ask if they can match it; a lot depends on the mortgage broker you deal with. Some will fight harder for you (they need to persuade their boss), while others may just tell you to take it or leave it.

[propertyguru]

Anyway, the rates change from time to time, so you can't hold them in June to a rate offered in January. 0.75% vs 0.65% isn't the consideration; the issue is whether other banks can offer a similar rate and if they can't, then Citibank/HSBC is your best shot. The original advice was to take the HSBC offer over the Citibank one, based on similar spreads. Obviously, if you can get a lower spread, then you should go with that bank provided there's no unreasonable term like 5-years lock-in.

[CondoSearch]

What do you mean about hsbc? They cannot offer you those rates? What is citibank's rate for buc property?

I mean HSBC seems has no offer for 1mnth+0.65 but they have 1mnth+0.75 for buc.

[CondoSearch]

Anyway, the rates change from time to time, so you can't hold them in June to a rate offered in January. 0.75% vs 0.65% isn't the consideration; the issue is whether other banks can offer a similar rate and if they can't, then Citibank/HSBC is your best shot. The original advice was to take the HSBC offer over the Citibank one, based on similar spreads. Obviously, if you can get a lower spread, then you should go with that bank provided there's no unreasonable term like 5-years lock-in.

got it and thanks for all your advise...will have a final discuss with the bankers and take from what is best as of todate offer i got...thanks again.

[ysyap]

got it and thanks for all your advise...will have a final discuss with the bankers and take from what is best as of todate offer i got...thanks again.

All the best to your search for that best bank interest rate!

[CondoSearch]

All the best to your search for that best bank interest rate!

Thanks...HSBC is the one i go with...the person i spoke with from Citibank doesn't seem to be keen in a business and quite proude with their offer and thought it is the best or might be because am not a priority customer