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Citibank Home Loans

Citibank Home Loans
(Product Review)

Updated November 18, 2022

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Product Review

Citibank is the consumer division of global financial services provider Citigroup. The bank is also a major participant in Singapore’s mortgage industry. Its loans are dedicated to private property, HDB flats and executive condos. In Singapore, this ingenious merchant bank is one of the few financial institutions that offer attractive introductory rates but their total loan costs are relatively steep. Its modest entry rate makes it attractive for customers willing to refinance their loans on a 3 to 4 years basis.

Citibank provides acceptable interest rates on savings accounts for its active home loan clients to compensate for the inflated total loan costs. So, depending on the discretion of the customer, the extra cash can be directed towards clearing the home loan debts.

Although the total cost of loans in this prestigious bank is relatively higher than the rates of other banks. They offer seemingly cheap introductory interest rates that tend to climb significantly after 2 years. On the flip side, their competitors offer cheaper loan costs and better introductory interest rates. Since borrowers tend to often adjust their interest rates, it is necessary to have a quick comparison with the current interest rates of other banks before making the final decision.

Citibank is preferred for its low-cost beginning rates by individuals willing to renew their housing loans every few years. In addition, the bank offers more moderate rates for CITIGOLD customers and prospective clients requiring loans above S$500,000. Citibank has a splendid feature in its home lending plan which is the cleverly designed interest-offset account. It allows loan-takers to deposit and save 50% of the home loan’s interest rate in a registered Citibank savings account – Thus, enabling these clients to quickly refund their loans through the low but consistent yield from their savings account.

Citibank demands service charges on all its home loans including partial reimbursement fees. However, Citibank does not charge its validated customers full reclaiming and termination penalties.

Applicable Fees

Citibank demands service charges on all its home loans including partial reimbursement fees, full reclaiming prices and termination penalties. However, these charges do not apply to esteemed CITIGOLD clients. The table below shows the full details of fees pegged with Citibank’s standard home loan plans.

Home Type Type Partial Repayment fee Full Redemption Pinalty Cancellation Fee
Completed 1.5% 1.5% 1.5%
Completed
(CITIGOLD CLIENTS)
N/A N/A N/A
Building Under Construction N/A N/A 0.75%

Citibank HDB Home Loans

Bank 1st Year Interest Lock-in Period
CITI SORA Check Live Rates 2 Years
CITI SORA Check Live Rates 2 Years

If you require loans to finance your building project, you can use the standard HDB loan service or subscribe to Citibank’s HDB home loans.

Bank rates are often lower than the usual HDB loans but require a significant initial deposit of a higher percentage.

Housing loans with fixed rates are practical when the general market rates are predicted to jump. This will shield loan subscribers from the added costs that come with a surge in the market price. As a potential loan applicant, you should be able to explain the monthly installments, total loan cost and the flexibility of the loan towards refinancing. Some home loans tolerate refinancing after a year while other plans are stricter. These stricter home loans set up a lock-in period, to control your renegotiation power and tendency to refinance with other banks. Generally, fixed rates home loans have a life span of 3 to 5 years. At the end of these, the rates tend to float.

A floating rate home loan is an alternative to the fixed rate home loan for HDB flats. Floating rates are tied to standard reference benchmarks like Singapore Interbank Offered Rate (SIBOR), the newly launched Singapore Overnight Rate Average (SORA) and the bank board’s rate which constantly change with time. These benchmarks are calculated and validated by the Monetary Authority of Singapore (MAS).

Floating rate mortgages are beneficial when market rates are high and expected to decline in upcoming years. Availability of monthly deposits, full loan cost, and applicable lock-in period that allows easy refinancing and renegotiation process should be noted when comparing home loans.

Citibank Private Property Home Loan

Bank 1st Year Interest Lock-in Period
CITI SORA Check Live Rates 2 Years
CITI SORA Check Live Rates 2 Years
CITI Fixed Check Live Rates 2 Years
CITI Fixed Check Live Rates 3 Years

Citibank also grants loans to private residential buildings and executive condos. These loans cover both fixed and floating rates and are accessible to current and prospective customers.

Before choosing fixed interest mortgages, it is practical to study the available loan packages and apply for the one with the most affordable total interest cost. Other important criteria for loans are reasonable monthly installments and refinancing flexibility. Normal practice in Singapore commercial houses is to have fixed interest rates spanning 3 to 5 years before activating the floating plan.

There are two standard home loan plans made available to loan-takers: the fixed rate and floating rate. Either of them can be used to finance your building or home purchase project. Floating rates as the name implies, are not rigid and so constantly change with time.

In Singapore, the standard for measuring floating rates is the Singapore Overnight Rate Average interest Rate Benchmark which is commonly called SORA. Typically, you apply for rates within the threshold of 1 to 12 months and use your analysis of the market to determine the life span of the plans. In the loaning business, applicants are expected to use a long term rate for a climbing market movement and use short term rates for a dropping or flat market movement.

PROMOTIONS

APPLICATION PROCESS

  • Launch Application via the ROSHI Marketplace

    Once your application is live you will be able to review suitable loan options on your dashboard. One of our mortgage brokers will follow up with you to discuss the best available options and next steps.

  • Choose Suitable Mortgage Option

    After you’ve decided on a preferred mortgage option one of our mortgage brokers will help process your application.

  • Settle Fees & Charges

    Settle all fees (option fee, option exercise fee to the seller as well as the relevant buyer’s stamp duty fee in case you are purchasing a private property).

  • Appointment Date & Signing

    Attent your property purchase appointment date and sign all legal documents for the transfer of the property, paying all legal and valuation fees.

PRODUCT HIGHLIGHTS

  • Regular Refinance plans

    For Individuals willing and ready to refinance their home loan every few years

  • Offset Account for loans

    For customers interested in an interest-offset account and innovative ways to save.

  • High Loan Cost

    Individuals applying for home loans with affordable and manageable total loan cost.

ALL DETAILS

Loan Features

  • Cheap introductory interest rates
  • Legal Fee Subsidies: reaching up to S$2,500
  • Interest-offset account for active borrowers
  • Interest-offset account for active borrowers

EXTERNAL REVIEWS

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