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.

Post a Comment:

Comments are closed for this entry.

« Oil prices "healthy... | Main | Prudhoe Bay to resum... »

Most popular blog postings on lowem.log :

1. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
2. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
3. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
4. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
5. Live spot gold price quotes chart on COMEX
6. 2010 Honda Civic Hybrid preliminary specifications released
7. Fuel prices seen stoking Malaysia inflation in 2008
8. How to insert currency exchange rates into Google Spreadsheets

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
4. 67000 China factories closed in H1 2008 as global economic collapse takes hold
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Peakoiler buys 2008 Honda Civic Hybrid FD3
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004