There is no place at home.
This is the place where you can feel safe and at ease. However, it is no secret that purchasing a home is not as simple as finding the right place, pay it off and then move in. Singaporeans use housing loans to afford a home though they have to pay for a couple of years or even decades.
Most banks offer a home loan, and Citibank has a couple of housing products too. If you are eyeing a Citibank Home Loan, then you need to consider a couple of facts.
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Citibank Home Loan Products
- Citibank New Residential Property Purchase
If you need to get funds to purchase your new home, then you may get a New Residential Property Purchase loan.
Before you go looking for a home, you need to know how much you can afford. This is why you are encouraged to get an In-Principle Approval (IPA). This way you will know will you are qualified for a housing loan and how much the bank loan is willing to lend.
After getting an IPA, you can then select the property fit to your financial capability and loan amount. Get the Option to Purchase (OTP) by making an initial offer. You need to submit both the IPA and the OTP to make a formal loan application.
A lawyer may be provided by the bank to help you with the execution of the mortgaged usage of CFP funds. At this stage expect to pay legal fees and the downpayment. The disbursement will either be issued directly to you or through the lawyer.
- Citibank Mortgage Refinancing
Let’s say you already have an existing housing loan with a bank, however you realized that you can’t keep up with the repayments. Citibank offers to help you by settling the home loan for you. Then you can repay Citibank according to a loan agreement.
You can only get this loan solution if your existing housing loan is way passed its lock-in period and the interest rate is higher that Citibank’s rate.
- Citibank Cashout
This is a type of term loan where you can refinance your mortgage to get cash liquidity. Simply, you are using the value of your home to get a loan without selling it. Monthly installments must be met according to the agreed loan tenure upon loan disbursement.
Make sure that you can repay the monthly instalments to avoid penalty charges. You might be even risking to lose your home.
- Citibank Additions & Alterations or Reconstruction Loan
Citibank Additions & Alterations or Reconstruction Loan can be used for building a new home, revamping a recently purchased property or reconstructing a current property.
Citibank Home Loan Calculator
Why do you need a calculator? Citibank Home Loan Calculator can give you an idea on how much you have to pay each month based on the amount you are planning to borrow.
This does not give you the exact amount, but it can give you a way to consider how the monthly repayments can affect your daily finances.
How to use the Citibank Home Loan Calculator
- Select Property Type and Type of Interest Rate package
- Mention the Home Loan Amount Required
- Choose the Mortgage Repayment tenure
- Set the interest rates per annum for home loan repayment
- Calculate Mortgage repayment schedule along with the estimated monthly instalment breakdown.
Citibank Home Loan Interest Rates
Low interest rates from SIBOR + 0.70% p.a. for the first 3 years if you successfully apply online by 31 May 2017. SIBOR is Singapore Interbank Offered Rate. It is the interest rate used by banks in Singapore whenever they get a loan from each other. This is set by the Association of Banks in Singapore (ABS).
What to consider before getting a Citibank home loan?
- What type of buyer are you?
It is vital to consider if you are buying a property an investor or an owner. As an investor, you might be wanting to purchase an apartment which has the potential to be in-demand. You may even buy an apartment in a high-growth property area. If you are buying a home owner, you will highly consider your own lifestyle in a specific area.
- What type of rate do you want?
Should you take a fixed rate or the variable rate? Both types of interest rates have its own advantages and limitations. The decision will depend on how you manage your finances. If you are a kind of person who likes security, then take the fixed rate. If you like to keep your options open and take the chance that your interest rate may go/stay low, then variable rate will fit you best.
- Do you know all the fees toy have to pay?
There are a lot of fees involved in a housing loan. Upfront fee is the application fee charged by the bank when you take out a loan. Ongoing fees are fees or charges which you have to pay during the loan duration until its maturity. Exit or discharge fees are not always applicable. However, you may have to pay for certain fees such as the legal fees on the title of the property.
- How much should you borrow?
The more deposit you pay the lesser you have to borrow. Keep in mind that aside from the interest rate, you also need to pay the lawyer, stamp duty, and the required insurance.
Buying a home is not as easy as seems. It takes serious considerations. It is best to ask the bank about the possible fees you get charged with. Also, if you just want to get a loan for a minor home improvement, you can just get a personal loan from licensed moneylenders such as Cash Mart.
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