Citibank is unilaterally rasing the spread on its existing Sibor loan customers !

[teddybear]

I never contact MAS or CASE because I am not affected party, NOT a Citibank client for a long time now, sick of their LOUSY service previously, so CUT all business dealings with Citibank........

Would appreciate those affected who had contacted MAS and CASE to let us know their replies. While I am not affected, I can still help to make some loud noise because I feel that such precedence once tolerated will have BIG IMPLICATIONS in future!

Hey teddy, did mas or case replied to you? I know many who might be keen to band together for a louder noise

[MortgageGuru]

You still refuse to admit that you are not beating around the bush?
Until now, you have REFUSED to answer 3 queries here (in response to what you posted previously):

1) You have yet to clarify why the chart of SGD SIBOR I shown shows that highest SIBOR over past 10 years is only about 3.5% vs the 7.75% that you told us. Please clarify whether you have misled and intentionally want to us?

2) Please point out which of my argument "is still invalid eventually".......

3) Is your fudiciary duty as a mortgage broker towards your clients or towards the banks (who pay you commissions)?

Why being much better than you means should not have any issue with Citibank?
The way I see it is that Citibank is playing with words, and is oppressively trying to mislead their clients into believing they have the right to raise the spread unilaterally. There is clear violation of CPFTA, yet CASE and MAS are both not doing anything!

And most of us here know that you are a mortgage broker, why would you have issue with Citibank who pay you commissions?
Again, I ask you this question that you refused to answer me:
Is your fudiciary duty as a mortgage broker towards your clients or towards the banks (who pay you commissions)?

I can clearly see that you have conflict of interest, or vested interests, to be biased and sides with Citibank here............

Why you have strong objection to me for raising unfairness by Citibank?
Why should you bothered which platform I go to or how I do it?
I don't think I need to do as you prescribed, not forgetting that you have conflicts of interests and vested interests to side with Citibank here (since they pay you commissions, not your clients and potential clients that you are trying to hook up here)....................

I don't wish to stood as low your level here.
if you wish to have a discussion privately I do not mind.
my contact I believe most people here have, I do not have to explain so much and be led into your vengeance against bank.

[hopeful]

Nope. I believe everyone here are old enough to know when problem comes up, we solve it instead of blaming. Creating a unrest here makes you all no difference from communist in the early days.

ok, how do we solve it? whats the solution(s) ?

[hopeful]

I never contact MAS or CASE because I am not affected party, NOT a Citibank client for a long time now, sick of their LOUSY service previously, so CUT all business dealings with Citibank........

Would appreciate those affected who had contacted MAS and CASE to let us know their replies. While I am not affected, I can still help to make some loud noise because I feel that such precedence once tolerated will have BIG IMPLICATIONS in future!

my BS detector blew a fuse. luckily the BS detector electronics are already hardened due to constant exposure to BS from employees. So i just need to replace the fuse.

if banks raise spread indiscriminately, wouldnt ocr crash much faster than due to the slow increase in sibor rates? and those weak ccr holders, why they would have firesale, which you can scoop up..
Wait, What? you mean you still need loan to buy CCR properties? i mean, your properties are fully paid up, you are not affected right?
or it is because nobody can afford to take mortgage to buy the properties you want to offload at the price you wanted?

time to replace the BS detector fuse.

[onlooker]

@MortgageGuru, For the benefit of every one, could you please respond to the below query from @teddybear ?

"You have yet to clarify why the chart of SGD SIBOR I shown shows that highest SIBOR over past 10 years is only about 3.5% vs the 7.75% that you told us. Please clarify whether you have misled and intentionally want to us?"

I don't wish to stood as low your level here.
if you wish to have a discussion privately I do not mind.
my contact I believe most people here have, I do not have to explain so much and be led into your vengeance against bank.

[teddybear]

Isn't you the one who stood so low as to mislead and cheat your clients and the public and forum members via:

1) Lying that 7.75% is the highest SIBOR rate in the past 10 years?

2) Not having the integrity and honesty to fulfil your fiduciary duty to protect your clients interest as a mortgage broker but instead siding with the banks (just because the banks pay you commissions and your are trying to protect your interests and hence the banks')?

3) Beating around the bush by making vague statements without replying to queries which are made in response to your statements/allegations in this forum?

This is a public forum, and it is only right that we debate on the issue such as Citibank increasing a fixed spread unilaterally publicly, and there is no need to hide in a clock and talk about discussing the issue privately. Only when you have something to hide then you would want to discuss a subject of public interest privately!!!!!!!!!!!!!

I don't wish to stood as low your level here.
if you wish to have a discussion privately I do not mind.
my contact I believe most people here have, I do not have to explain so much and be led into your vengeance against bank.

You still refuse to admit that you are not beating around the bush?
Until now, you have REFUSED to answer 3 queries here (in response to what you posted previously):

1) You have yet to clarify why the chart of SGD SIBOR I shown shows that highest SIBOR over past 10 years is only about 3.5% vs the 7.75% that you told us. Please clarify whether you have misled and intentionally want to us?

2) Please point out which of my argument "is still invalid eventually".......

3) Is your fudiciary duty as a mortgage broker towards your clients or towards the banks (who pay you commissions)?

Why being much better than you means should not have any issue with Citibank?
The way I see it is that Citibank is playing with words, and is oppressively trying to mislead their clients into believing they have the right to raise the spread unilaterally. There is clear violation of CPFTA, yet CASE and MAS are both not doing anything!

And most of us here know that you are a mortgage broker, why would you have issue with Citibank who pay you commissions?
Again, I ask you this question that you refused to answer me:
Is your fudiciary duty as a mortgage broker towards your clients or towards the banks (who pay you commissions)?

I can clearly see that you have conflict of interest, or vested interests, to be biased and sides with Citibank here............

Why you have strong objection to me for raising unfairness by Citibank?
Why should you bothered which platform I go to or how I do it?
I don't think I need to do as you prescribed, not forgetting that you have conflicts of interests and vested interests to side with Citibank here (since they pay you commissions, not your clients and potential clients that you are trying to hook up here)....................

[teddybear]

@hopeful,

What a BS detector you have, so full of BS by itself!

Whether I need loan or not to buy property is not material here, and is a private issue for me to decide on, so can't diverge to you, ha ha ha!

The rest of your questions I have no idea. What do you think? Please share share........................

my BS detector blew a fuse. luckily the BS detector electronics are already hardened due to constant exposure to BS from employees. So i just need to replace the fuse.

if banks raise spread indiscriminately, wouldnt ocr crash much faster than due to the slow increase in sibor rates? and those weak ccr holders, why they would have firesale, which you can scoop up..
Wait, What? you mean you still need loan to buy CCR properties? i mean, your properties are fully paid up, you are not affected right?
or it is because nobody can afford to take mortgage to buy the properties you want to offload at the price you wanted?

time to replace the BS detector fuse.

[MortgageGuru]

Isn't you the one who stood so low as to mislead and cheat your clients and the public and forum members via:

1) Lying that 7.75% is the highest SIBOR rate in the past 10 years?

2) Not having the integrity and honesty to fulfil your fiduciary duty to protect your clients interest as a mortgage broker but instead siding with the banks (just because the banks pay you commissions and your are trying to protect your interests and hence the banks')?

3) Beating around the bush by making vague statements without replying to queries which are made in response to your statements/allegations in this forum?

This is a public forum, and it is only right that we debate on the issue such as Citibank increasing a fixed spread unilaterally publicly, and there is no need to hide in a clock and talk about discussing the issue privately. Only when you have something to hide then you would want to discuss a subject of public interest privately!!!!!!!!!!!!!

The reason why I'd prefer to speak to you privately is for the peace of this forum.

SIBOR was at a all time high of 7.75%, but that was back in 1990s which I made a mistake of that not being in the past 10 years. I've no qualms admitting to my mistake at all.

Are you telling me that by telling my client that I'll fight for the SIBOR spread at 0.6 throughout for them, the rates won't change even if bank were to unilaterally raise the rates, I'm being responsible here?

I can only fight for the best benefit in the market, but I can't control how bank works, do you understand this? You're telling me that I as a broker can promise you what only the bank have control of, so broker is more powerful than the bank? Why not I setup a bank myself and be a lender instead?

Your whole argument is still invalid.

If a club doesn't grant you entrance, do you call the police and demand a answer from the club?
If a restaurant doesn't grant you entrance, do you call the police as well?
If you're not selected to be a Prime Minister because you do not have enough money, do you call the police as well?

If you're so vocal, why not you do a video similar to Amos Yee and circulate in the internet since you want your voices/campaign to be heard badly?

You're just citing fire here, instigating unrest.

Back to the topic,

If you got no money, don't borrow to gamble.
If you got no money, don't borrow to buy a house.
If you can't afford a house, a financial institution is there to help you out of goodwill and profit, you have your choice, don't borrow if you think their T&C is unfair to you.
If you choose to borrow, take it like a man and suck it up.

You're no different from a imbecile kid.

[teddybear]

I am awed that you really have no idea what is "fiduciary duty to your clients"!
But then guess what, you have no such mentality to your clients because you have INTEGRITY issue, that explains it, and the fact that the banks pay you commissions, so you only side with the banks!

Now, given the fact that Citibank unilaterally change the spread with no regards to what had been agreed in the main contract agreement, and you are telling all of us to keep quiet because the banks have the right to do that because of some T&C small font clauses they have (which are obviously aggressively and oppressively one-sided as to be unconscionable), then it just shows that you have breached your fiduciary duty to your clients!

To fulfil your fiduciary duty, you need to:
1) Advise your clients that what Citibank did is WRONG!
2) Don't do mortgage business with Citibank in order to fulfil your fuduciary duty to your clients!

The reason why I'd prefer to speak to you privately is for the peace of this forum.

SIBOR was at a all time high of 7.75%, but that was back in 1990s which I made a mistake of that not being in the past 10 years. I've no qualms admitting to my mistake at all.

Are you telling me that by telling my client that I'll fight for the SIBOR spread at 0.6 throughout for them, the rates won't change even if bank were to unilaterally raise the rates, I'm being responsible here?

I can only fight for the best benefit in the market, but I can't control how bank works, do you understand this? You're telling me that I as a broker can promise you what only the bank have control of, so broker is more powerful than the bank? Why not I setup a bank myself and be a lender instead?

Your whole argument is still invalid.

If a club doesn't grant you entrance, do you call the police and demand a answer from the club?
If a restaurant doesn't grant you entrance, do you call the police as well?
If you're not selected to be a Prime Minister because you do not have enough money, do you call the police as well?

If you're so vocal, why not you do a video similar to Amos Yee and circulate in the internet since you want your voices/campaign to be heard badly?

You're just citing fire here, instigating unrest.

Back to the topic,

If you got no money, don't borrow to gamble.
If you got no money, don't borrow to buy a house.
If you can't afford a house, a financial institution is there to help you out of goodwill and profit, you have your choice, don't borrow if you think their T&C is unfair to you.
If you choose to borrow, take it like a man and suck it up.

You're no different from a imbecile kid.

[MortgageGuru]

I am awed that you really have no idea what is "fiduciary duty to your clients"!
But then guess what, you have no such mentality to your clients because you have INTEGRITY issue, that explains it, and the fact that the banks pay you commissions, so you only side with the banks!

Now, given the fact that Citibank unilaterally change the spread with no regards to what had been agreed in the main contract agreement, and you are telling all of us to keep quiet because the banks have the right to do that because of some T&C small font clauses they have (which are obviously aggressively and oppressively one-sided as to be unconscionable), then it just shows that you have breached your fiduciary duty to your clients!

To fulfil your fiduciary duty, you need to:
1) Advise your clients that what Citibank did is WRONG!
2) Don't do mortgage business with Citibank in order to fulfil your fuduciary duty to your clients!

Your behaviour just goes to show how childish and imbecile you are.
I don't bring client to citi in the first place as they don't offer the best rate.
I have no whatsoever commision either from citi, you're being prejudice in the first place.
I could've just kept my mouth shut but I can't stand your non-stop complaint when you are not even at the end of receiving end, your main purpose is just to stir shit.
If you have any outstanding loan, kindly go through your letter of offer and go to the fine print page, almost all banks have the same T&C allowing them to do what citi done.
enough of your nonsense, I'm gonna stop replying to you and stood to your level, once again, imbecile childish behaviour of an adult, keyboard warrior.

[teddybear]

All banks have same T&Cs? Yes, but NONE DID WHAT Citibank DID! Simple as that!
So Citibank is all out to make use of the aggressively and oppressively one-sided unfair term that is unconscionable (which no bank dare to use until now) to take advantage of its clients!
Since you know of the above, and you are still siding with Citibank???? Wow! That really talks about your character lacking of integrity and lacking of professional ethic in NOT trying to fulfil your fuduciary duty to your clients!!!!!!!!!!!!!!!

Your behaviour just goes to show how childish and imbecile you are.
I don't bring client to citi in the first place as they don't offer the best rate.
I have no whatsoever commision either from citi, you're being prejudice in the first place.
I could've just kept my mouth shut but I can't stand your non-stop complaint when you are not even at the end of receiving end, your main purpose is just to stir shit.
If you have any outstanding loan, kindly go through your letter of offer and go to the fine print page, almost all banks have the same T&C allowing them to do what citi done.
enough of your nonsense, I'm gonna stop replying to you and stood to your level, once again, imbecile childish behaviour of an adult, keyboard warrior.

[MortgageGuru]

Your argument is the same throughout.
how many times must I tell you that they have the rights and by bring the first to use this power of theirs, it doesn't mean they are at fault.
Jay walking is also illegal, why didn't I see you go around catching people jaywalk?

Why don't you make a complaint against MAS as well?
I have full cash and I wants to buy a car using cash completely but they're charging me higher else I have to take up a loan in order not for them to charge me at a premium price. Why don't you bring this issue up?

There's so many problem in this world, why do you have to insist on finding one that's doing it in the legal framework?
I'd rather you go do charity on a Sunday than burying yourself in hatred here.
It gets nowhere eventually, is not like citi make a unreasonable hike, at the end of day, just refinance or pay off your loan then.
I know you're not one of the affected client, then please don't affect others.
Citi only increase for client who are out of lock-in period, which I find it ridiculous too because being tied down to their loan borrowers are already paying 0.8% above for their spread so it doesn't make much sense for them to say it only affect people who are out of lock-in.
I disagree their actions too, but we have to deal with it instead of starting the blame game.

[teddybear]

Citibank has the right to change the loan interest spread despite the term NOT BEING clearly written in black and white in the Mortgage loan Main Contract?
Oh really? They have the right under the Consumer Protection and Fair Trading Act with that aggressive and oppressively one-sided term as to be unconscionable?

And who are you to dictate which cause I like to take up? What has it to do with you that you are so work up?
And why your reply must beat around the bush and drag in so many thing that has nothing to do with Citibank UNILATERALLY and UNFAIRLY hike the spread of the interest rate for their mortgage loan?

Anyway, I just like to take up the cause to raise the awareness to all Singaporeans and even to all people in the World that Citibank has been unreasonable and UNFAIR and uses that small font clause to force aggressive and oppressively one-sided term as to be unconscionable onto their customers! This is NOT just an UNREASONABLE HIKE, it is worst than that! I just like to take up this cause, especially when MAS and CASE seem CAN'T be bothered to do anything, so why you are bothered by it? Do you get better commissions from Citibank (than other banks) that is why you so work up and have to keep defending Citibank??????

I am NOT like you! I am not affected by Citibank UNILATERALLY hiking spread, but I feel deeply for those badly affected by Citibank (especially those who can't refinance due to TDSR)! In contrast, you are still defending Citibank that they have the right to hike loan interest spread?

And kindly tell us, based on your statement:

I disagree their actions too, but we have to deal with it instead of starting the blame game.

(1) What do you suggest the actions we can take to deal with Citibank for contradicting CPFTA when CASE and MAS is not going to do anything?????
(2) Why you say I am starting blame game when it is true that there are already deep disgust against Citibank by those people affected and many had been complaining to newspapers, CASE and MAS? Is it my fault that Citibank getting blamed for being UNFAIR and UNREASONABLE??????

Again, your response to my post just proved that you have NO integrity and you don't walk the talk! Didn't you say in your another earlier post that you will (to quote your words): "I'm gonna stop replying to you"?

Your argument is the same throughout.
how many times must I tell you that they have the rights and by bring the first to use this power of theirs, it doesn't mean they are at fault.
Jay walking is also illegal, why didn't I see you go around catching people jaywalk?

Why don't you make a complaint against MAS as well?
I have full cash and I wants to buy a car using cash completely but they're charging me higher else I have to take up a loan in order not for them to charge me at a premium price. Why don't you bring this issue up?

There's so many problem in this world, why do you have to insist on finding one that's doing it in the legal framework?
I'd rather you go do charity on a Sunday than burying yourself in hatred here.
It gets nowhere eventually, is not like citi make a unreasonable hike, at the end of day, just refinance or pay off your loan then.
I know you're not one of the affected client, then please don't affect others.
Citi only increase for client who are out of lock-in period, which I find it ridiculous too because being tied down to their loan borrowers are already paying 0.8% above for their spread so it doesn't make much sense for them to say it only affect people who are out of lock-in.
I disagree their actions too, but we have to deal with it instead of starting the blame game.

All banks have same T&Cs? Yes, but NONE DID WHAT Citibank DID! Simple as that!
So Citibank is all out to make use of the aggressively and oppressively one-sided unfair term that is unconscionable (which no bank dare to use until now) to take advantage of its clients!
Since you know of the above, and you are still siding with Citibank???? Wow! That really talks about your character lacking of integrity and lacking of professional ethic in NOT trying to fulfil your fuduciary duty to your clients!!!!!!!!!!!!!!!

Your behaviour just goes to show how childish and imbecile you are.
I don't bring client to citi in the first place as they don't offer the best rate.
I have no whatsoever commision either from citi, you're being prejudice in the first place.
I could've just kept my mouth shut but I can't stand your non-stop complaint when you are not even at the end of receiving end, your main purpose is just to stir shit.
If you have any outstanding loan, kindly go through your letter of offer and go to the fine print page, almost all banks have the same T&C allowing them to do what citi done.
enough of your nonsense, I'm gonna stop replying to you and stood to your level, once again, imbecile childish behaviour of an adult, keyboard warrior.

[Arcachon]

Do MAS print money ?

[Arcachon]

http://mystocksinvesting.com/singapo...ail-investors/

[Arcachon]

[teddybear]

Singapore Savings Bonds is a great product for the laymen but will causes Fixed Deposit rates to be inflated, and in turn inflat SIBOR rates!

OCR property prices going to crash due to hike in SIBOR!

Do MAS print money ?

[Arcachon]

What I think is when you start to print money, money start to lost it value and property start to rise again.

Interest rate is only one of the components for property price going up or down.

That is my layman point of view.

I never believe in paper money, electronic money is even worst.

If Bank can loan me money to buy property, I will still buy.

I print paper, you give me money for exchange.

Or I go computer type in a number and you give me money in exchange.

[Arcachon]

http://forums.condosingapore.com/sho...nt-Bank-(AIIB)

When interest rate go up, inflation up or down.

[sabian]

... and guess who has been shepherding the flock towards FHR pegged home loans?

[teddybear]

For people who are contemplating to take up FHR loans, they have to be careful because Singapore Savings Bonds is now a game changer and will obviously push up FHR rate (hence FHR historical rate is no long applicable)!

... and guess who has been shepherding the flock towards FHR pegged home loans?

[Arcachon]

http://www.mortgagewise.sg/dbs-incre...hr-home-loans/

Fixed Deposit Home Rate

[teddybear]

For those affected Citibank customers like you, you may want to withhold refinancing first and try fighting Citibank to NOT renege on the agreed contract and take back the hiking of the spread because:

1) I don't believe Citibank has right to hike the spread. You may want Citibank to point out which clause in your Mortgage Loan Contract they uses to justify to hike the spread.

2) Now if Citibank has no right to hike the spread, and you refinance, you are not only letting Citibank off the hook but you loses the low spread that Citibank promised you previously (which could be the only reason you signed up Citibank mortgage loan)............

3) I believe you all should push MAS and CASE for outright declaration of their stands (rather than to allow them to shrunk it off as though Citibank hiking spread is reasonable and they can't do anything about it).

For sake of helpless citibank customer like me...

I would appreciated if anyone can help by joining my
facebook group "Singapore home grouploan"
https://www.facebook.com/groups/668115326654609/

And click share for more awareness.
Thank u very veriii much

[hopeful]

@hopeful,

What a BS detector you have, so full of BS by itself!

Whether I need loan or not to buy property is not material here, and is a private issue for me to decide on, so can't diverge to you, ha ha ha!

The rest of your questions I have no idea. What do you think? Please share share........................

truth to say, i am kind of disappointed by the weak comeback. do better next time, teddy.

[hopeful]

......
1) I don't believe Citibank has right to hike the spread. You may want Citibank to point out which clause in your Mortgage Loan Contract they uses to justify to hike the spread.
.....

Wow, teddy, you so clever to think about this. Thanks for pointing this out. I never thought about this until you pointed this out.

[gavan]

For those affected Citibank customers like you, you may want to withhold refinancing first and try fighting Citibank to NOT renege on the agreed contract and take back the hiking of the spread because:

1) I don't believe Citibank has right to hike the spread. You may want Citibank to point out which clause in your Mortgage Loan Contract they uses to justify to hike the spread.

2) Now if Citibank has no right to hike the spread, and you refinance, you are not only letting Citibank off the hook but you loses the low spread that Citibank promised you previously (which could be the only reason you signed up Citibank mortgage loan)............

3) I believe you all should push MAS and CASE for outright declaration of their stands (rather than to allow them to shrunk it off as though Citibank hiking spread is reasonable and they can't do anything about it).

To do this, first I must gather enough customers like me.. fight together!!
Unfortunately, I do not see such person joining my group.Very quiet and pathetic .... :-((

[hopeful]

To do this, first I must gather enough customers like me.. fight together!!
Unfortunately, I do not see such person joining my group.Very quiet and pathetic .... :-((

choose 1 or more applicable
1) post #64 (the concept of freerider)
2) you have no street creds
3) your proposition sounds ridiculous to even the affected citibank customers
4) who wants to waste time and $ joining a losing team.
5) affected citibank customers are nato

[amk]

an update on this story.
to hopeful: according to my friend, yes, Citi insists that "interest rate subjected to change" is the one that allows them to change the spread. I dun know if he will use your argument to play with words with them. but he is already doing refinance now so he doesn't care much now.

He gave me the MAS email details. You all can write to MAS directly: [email protected], attention Chan Wei Sze who is the "case officer". (I did. This is public interest. )

to gavan: collective loan deal is not doable. each one has his own relationship and preference for a bank. these are not homogeneous "fungible" products. the real issue here should be to get MAS to "deal with" Citibank, for everybody's interest.

Btw I'm actually quite surprised no ST Forum articles on this subject appeared. I am sure many ppl wrote to Forum. If Today can publish, why not Straits Times ?

[hopeful]

an update on this story.
to hopeful: according to my friend, yes, Citi insists that "interest rate subjected to change" is the one that allows them to change the spread. I dun know if he will use your argument to play with words with them. but he is already doing refinance now so he doesn't care much now.
.....

It is a pity. personally i think citibank has a rather weak case (not that i am a legal eagle). since mortgagee is paying "effective interest rate" rather than "interest rate" and formula for "effective interest rate" is already well defined as 1 month SIBOR + 0.65%.
And what is 0.65%? Is it "Interest rate"? That is highly questionable.
as mentioned earlier, the only definition of "interest rate" in LOI is:
"The interest rate quoted to you is benchmarked against the Singapore Interbank Offered Rate ("SIBOR") and is accordingly subject to any fluctuations in SIBOR rate".
so 0.65% is not the "interest rate".
SIBOR rate is the "interest rate" and are subject to change (ie subject to any fluctuations in SIBOR rate), not the 0.65%.

Anyway, the outcome is anticipated. A lot of free-riders (i admit i am one) depending on a few person efforts. The few will think "Why should i fight so hard so that the many others can enjoy? If I suffer, other people also suffer".

....
Btw I'm actually quite surprised no ST Forum articles on this subject appeared. I am sure many ppl wrote to Forum. If Today can publish, why not Straits Times ?

ST has more gravitas. Today is quite light weight, "gossip" column like the TNP, nobody influenced by Today/TNP.

[DC33_2008]

I happen to read this article. Not sure if it was uploaded by somebody earlier.


Borrowers upset over hike in margin for Sibor loans

Posted on 29 Mar 2015



BY RACHAEL BOON

Straits Times



MANY home buyers with loans pegged to the Singapore Interbank Offered Rate (Sibor) have been hit with higher repayments following the Sibor's increase this year.

That is to be expected, but some Citibank customers have also found that the margin or spread - the added percentage banks tack on to the Sibor - has also moved up.

They were informed earlier this month that the spread on their Sibor-pegged loans would increase to 0.85 per cent from the promotional rate they had signed up with. The change takes effect from April 1.

Citibank said the spreads range from 0.6 to 0.8 per cent for customers who took up loans in late 2010 and in 2011.

One customer said he has been on a three-month Sibor loan since 2011 under a two-year lock-in package. His spread has risen from 0.7 per cent to 0.85 per cent.

However, Citibank said raising the spread has affected only a small number of people.

Mr Peng Chun Hsien, Citibank Singapore's head of secured finance solutions, also stressed that the "current revision is only applicable to clients outside the lock-in period".

Another customer, a Mr Lee, said he has been on a one-month Sibor home loan since 2011.

He told The Straits Times his spread has risen from 0.65 to 0.85 per cent but he had thought the spread would stay at 0.65 per cent throughout the loan.

Mr Peng told The Straits Times: "The word 'throughout' is a term the industry uses, and refers to the tenure and period that we are covering."

He added that affected customers had been given sufficient notice so that the process is transparent and they can opt to refinance their loans. Mr Peng noted that the overall rate is still fairly competitive.

Mr Keff Hui, a broker at Mortgage Supermart Singapore, noted that an 0.85 per cent spread used to be the market rate but some banks had lowered it to attract customers.

Another client on a one-month Sibor said: "Sibor is already variable and has gone up by 100 per cent year on year. How can the spread be variable too?"

Finance industry experts say reviewing spreads is standard bank practice, but in practice, changing the spread during the loan period is uncommon.

The Straits Times understands that banks such as United Overseas Bank and OCBC Bank have not increased the spreads. A DBS Bank spokesman said DBS and POSB have not varied spreads while under an existing agreement with customers. He said an 0.85 per cent spread used to be the market rate but some banks have lowered it to attract customers.

Customer Mr Lee said: "I will have to pay $200 to $300 more a month, but the amount is not significant. It's about how the bank can do this to customers."

Mr Seah Seng Choon, executive director of the Consumers Association of Singapore, said: "We are of the view that the banks should justify such rate changes clearly to the affected consumers. Such changes will not be fair to consumers if there is no justification to do so."

Citibank said it undertook "careful consideration of factors including prevailing market conditions" before making the move.

The Monetary Authority of Singapore (MAS) said it does not regulate the setting of interest rates but the banks must provide clear and relevant information on products and services, said a spokesman, adding that MAS has asked Citibank to review the customer feedback received.

Mr Peng said all the terms and conditions have been carefully outlined and that interest-rate definitions are clearly stated.

He encouraged affected customers to contact the bank, adding that any decision they make regarding their loans will not be bound by any penalty or fees.

It is a pity. personally i think citibank has a rather weak case (not that i am a legal eagle). since mortgagee is paying "effective interest rate" rather than "interest rate" and formula for "effective interest rate" is already well defined as 1 month SIBOR + 0.65%.
And what is 0.65%? Is it "Interest rate"? That is highly questionable.
as mentioned earlier, the only definition of "interest rate" in LOI is:
"The interest rate quoted to you is benchmarked against the Singapore Interbank Offered Rate ("SIBOR") and is accordingly subject to any fluctuations in SIBOR rate".
so 0.65% is not the "interest rate".
SIBOR rate is the "interest rate" and are subject to change (ie subject to any fluctuations in SIBOR rate), not the 0.65%.

Anyway, the outcome is anticipated. A lot of free-riders (i admit i am one) depending on a few person efforts. The few will think "Why should i fight so hard so that the many others can enjoy? If I suffer, other people also suffer".


ST has more gravitas. Today is quite light weight, "gossip" column like the TNP, nobody influenced by Today/TNP.