Citibank Home Loan Review: Fixed Rates, SORA Packages and More (2022)

·5-min read
Citibank Home Loan Review: Fixed Rates, SORA Packages and More (2022)
Citibank Home Loan Review: Fixed Rates, SORA Packages and More (2022)

Establishing its Singapore operations in 1902, Citibank was the first U.S. bank to set up shop in Singapore. Given its more than 120-year history here, the bank has been providing its services in almost all asset classes serving both retail consumers and commercial enterprises.

Citibank Singapore is also the largest foreign banking employer in Singapore with a diversified workforce of around 10,000 employees. It was also amongst the first four foreign banks to be awarded a Qualifying Full Bank (QFB) licence by the Monetary Authority of Singapore (MAS) in 1999.

In June 2022, the US Fed made the largest rate hike since 1994, raising interest rates by 75 basis points; they did so again in July 2022. US Fed officials also see interest rates rising further. According to experts, it is anticipated that the Fed’s most recent action will increase borrowing costs even more.

Singapore’s three major banks started to raise their mortgage rates after the rate hike. In this article, we take a look at the home loan packages offered by Citibank for homeowners.

Disclaimer: The packages mentioned in this article are correct at the time of writing (31 August 2022) and are meant as a guide only. The interest rates are subject to change, and you should compare the latest home loan rates and packages on PropertyGuru Finance before applying for a new home loan.

Citibank Home Loan Summary

Type of loan

Citibank home loans

BUC home loans (min. $750,000 loan)

1M/3M SORA BUC Package (no lock-in period)

Fixed rate home loans

2- and 3-Year Fixed Rate

Floating rate home loans

2-Year 1M/3M SORA Package

Some things to take note of:

For uncompleted properties (building-under-construction (BUC) private property), there is a minimum loan size of $750,000. For completed properties, there is a minimum loan sum of $800,000. Note that the above-mentioned packages currently do not apply to HDB properties.

Higher net worth clients who qualify as CitiGold Private and CitiGold private clients enjoy preferential rates. The rates listed in this article are Citibank package rates. You may find CitiGold and CitiGold Private rates on PropertyGuru Finance as well, but for eligibility questions, it’s best to check with one of our Mortgage Experts.

Citibank BUC Home Loans (For Residential Properties under Construction)

Currently, Citibank has a floating rate package for residential properties under construction (BUC), such as new condos. It is pegged to the 1-month (1M) or 3-month (3M) compounded SORA.

Year

Citibank 1M SORA BUC Package

Citibank 3M SORA BUC Package

Year 1

1M SORA + 0.95%

3M SORA + 0.95%

Year 2

1M SORA + 0.95%

3M SORA + 0.95%

Year 3

1M SORA + 0.95%

3M SORA + 0.95%

Year 4

1M SORA + 0.95%

3M SORA + 0.95%

Thereafter

1M SORA + 1.30%

3M SORA + 1.30%

This package does not have a lock-in period. It also comes with a free conversion once the building’s construction is completed, so borrowers can switch to the completed mortgage packages without incurring additional fees.

As mentioned, the minimum loan amount for this BUC package is $750,000, which may exclude more affordable properties which may be priced below $1 million. Note that this BUC package is for private properties only (i.e., it excludes HDB BTO flats).

Citibank Fixed Rate Home Loans

Citibank has both fixed and floating mortgage packages for completed housing projects. Under the fixed rate packages, borrowers can choose either the 2-year or 3-year packages. Here are the current rates, as of 31 August 2022.

Citibank 2-Year Fixed Rate Package

Year

Citibank 2-Year Fixed Package

Year 1

3.05%

Year 2

3.05%

Year 3

3M SORA + 1.30%

Thereafter

3M SORA + 1.30%

Citibank 3-Year Fixed Rate Package

Year

Citibank 3-Year Fixed Package

Year 1

3.00%

Year 2

3.00%

Year 3

3.00%

Thereafter

3M SORA + 1.30%

For both packages, once the two or three years are up, the rate is pegged to the 3M SORA.

Citibank Floating Rate Home Loans

For borrowers who prefer a floating rate package, Citibank offers SORA packages. Depending on their loan size and preference, borrowers can choose either the 1-month or 3-month packages. All the floating rate packages come with a 2-year lock-in period. Here are the current rates (as of 31 August 2022).

Citibank SORA Home Loans

Year

Citibank 1M SORA Floating Rates for Private Properties

Citibank 3M SORA Floating Rates for Private Properties

Year 1

1M SORA + 0.90%

3M SORA + 0.90%

Year 2

1M SORA + 0.90%

3M SORA + 0.90%

Year 3

1M SORA + 0.90%

3M SORA + 0.90%

Thereafter

1M SORA + 1.30%

3M SORA + 1.30%

With the current SORA, the two packages are quite comparable. The 1M SORA + 0.90% comes up to 2.80%, while the 3M SORA + 0.90% is 2.46%. Both packages do not come with free package conversion.

Citibank Home Loan Review: Should You Consider It?

Preferential Rates for CitiGold Clients

Citibank offers preferential mortgage interest rates for their CitiGold and CitiGold Private Client customers. Such customers can take full advantage of the preferential interest rates which can be amongst the most competitive in the market, be it for the fixed or floating mortgage interest packages. If you are not already a CitiGold or CitiGold Private Client, you can speak with our Mortgage Experts to find out more.

Mortgage Loan Interest Offset with Citi Home Saver Checking Account

Moreover, depositors who have taken up any floating interest rate packages can also tap onto the unique Mortgage Loan Interest Offset feature. Borrowers with high savings can offset the interest earned on their deposits in their Citi Home Saver Checking Account with the interest paid on their mortgage, thereby, effectively reducing the monthly mortgage interest rate on the home loans.

Citibank Home Loan Subsidies, Promotions and Deals

Depending on the timing of your home loan application, there may also be lucrative promotional packages offered by Citibank to sweeten the deal. Do look out for them or check with one of our Mortgage Experts for the latest promotions.

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