Wednesday September 27, 2006

DBS Group, Citibank raise home loan rates again

business-times.asia1.com.sg :

Mortgage interest rates are being increased for the second time this year by two banks in Singapore, DBS and Citibank. The market leader in home loans, DBS Group, is raising interest rates for its private property and HDB home loans for certain customers, with the hike ranging from 0.15 to 0.5 of a percentage point per annum.

Citibank Singapore is also upping home loan rates for the second time this year. Effective from Oct 1, Citibank is raising home loan rates for existing customers by an average of 0.25-point per annum. Tan Chia Seng, Citibank Singapore's business director for secured assets group, said: 'We do not rule out the possibility of further rate increases, due to market factors. The general view is that mortgage rates may rise further, before stabilising towards the end of the year.'

Singapore's three-month interbank rate has jumped from about 1.4 per cent at end-2004 to around 3.5 per cent today. Market players note that the increase in home loan rates will boost net interest margins of banks and help their profitability.

See also :

1. Singapore interbank rate hits 7-year high
2. POSB raises savings interest rates

(2006-09-27 13:13:03 SGT) [Biz] Permalink Comments [1]

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