{"id":116884,"date":"2020-06-04T11:32:50","date_gmt":"2020-06-04T04:32:50","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/cimb-bank-makes-u-turn-on-floor-rate-following-customer-backlash\/"},"modified":"2020-06-04T12:06:35","modified_gmt":"2020-06-04T05:06:35","slug":"cimb-bank-makes-u-turn-on-floor-rate-following-customer-backlash","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cimb-bank-makes-u-turn-on-floor-rate-following-customer-backlash\/","title":{"rendered":"CIMB Bank makes U-turn on floor rate following customer backlash"},"content":{"rendered":"


\nA group of over 100 CIMB customers had banded together and set up a website where they expressed their anger over the bank\u2019s plan to raise the mortgage floor rates on 18 May.
\nCIMB Bank has decided to keep the floor rate for mortgages tied to the Singapore inter-bank offered rate (SIBOR) and swap offer rate (SOR) at 0.1%, after earlier plans to increase it to 0.9% was met with objections among customers, reported TODAY.
\n\u201cWe factored in that the market\u2019s cost of deposits has fallen, hence allowing us to lower our deposit rates and cost of deposits so that we can maintain our floor rate at 0.1%,\u201d said Victor Lee, Chief Executive Officer of CIMB Singapore.
\n\u201cWe thank our customers for their feedback, and we sincerely apologise for the inconvenience caused.\u201d
\nRead: What SIBOR Rates Mean for Your Home Loans And Why You Should Track It (2020)
\nA group of over 100 CIMB customers had banded together and set up a website where they expressed their anger over the bank\u2019s plan to raise the mortgage floor rates on 18 May.
\nThe bank had moved the planned hike to 1 January next year.
\n\u201cNobody would expect \u2014 in the middle of a pandemic as interest rates began to fall \u2014 CIMB would suddenly inform all their customers that the floor rate would now be 0.9% rather than 0.1%,\u201d noted the website, adding that the bank offered \u201cno justification\u201d for the hike.
\nThe beleaguered customers found each other via social media. They took issue with a clause within the standard terms and conditions of the bank, which enables CIMB to change interest rate at its discretion.
\nRelated:\u00a0Home Financing Strategies For Managing Cash Flow Amidst COVID-19 Pandemic
\nA customer, who wanted to be identified only as Mr Singh, described the clause as \u201cjust fundamentally wrong\u201d.
\n\u201cThe main issue is the principle (behind the hike),\u201d said the 57-year-old who had already paid off the bulk of his $300,000 housing loan.
\nA 30-year old doctor, who wanted to be identified only as Dr Ong, shared that he had just obtained a $750,000 loan in March for his executive condominium before he received the letter about the hike in April.
\nDr Ong, who expects to pay \u201ctwo to three times\u201d more interest with the planned hike, is upset that he has to deal with such issue while working on the frontlines.
\n\u201cAll of us are doing our part (during the pandemic) but it feels like the bank did not honour its contract \u2026 It\u2019s quite unreasonable,\u201d he said.
\nMeanwhile, CIMB revealed that it is offering its customers a two-year fixed rate of 0.9% or a three-year fixed rate of 1.10% to mitigate the fluctuations of the present volatile interest rate environment.
\n\u201cThis will give our customers peace of mind for the next three years, allowing them to plan their finances accordingly for the immediate three years,\u201d said Lee.
\n\u201cWe are offering the lowest fixed rates for our existing customers on the SIBOR and SOR packages as of today.\u201d
\nWhether you want to compare the best home loans, or get personalised advice for your home loans, PropertyGuru Finance helps you for free.\u00a0
\nFind and compare the best home loans offered by banks, get unbiased advice from our expert advisors and use our tools to help you make smarter decisions on\u00a0PropertyGuru Finance now.
\n\u00a0
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…CIMB Bank makes U-turn on floor rate following customer backlash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A group of over 100 CIMB customers had banded together and set up a website...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-116884","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-upe","jetpack-related-posts":[{"id":39573,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/whats-next-for-singapore-property-after-fed-hike\/","url_meta":{"origin":116884,"position":0},"title":"What\u2019s next for Singapore property after Fed hike?","date":"January 4, 2017","format":false,"excerpt":"\r Fed rate increase draws mixed reaction among Singaporean lenders Marina Bay Sands and Helix Bridge in Singapore. Suchat Nuchpleng \/ Shutterstock.com Singapore\u2019s financial institutions are still reckoning with the decision of the US Federal Reserve to hike interest rates last month. The Singapore interbank offered rate (Sibor), a three-month\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":49339,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/news-roundup-march-2017\/","url_meta":{"origin":116884,"position":1},"title":"News Roundup (March 2017)","date":"March 24, 2017","format":false,"excerpt":"\r \u00a0 Our top Singapore property stories. Fitch: Looser property curbs won\u2019t stop price falls Housing prices in Singapore are likely to continue falling even as the government may gradually ease the property cooling measures, Fitch Ratings said recently. 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Source: ERA Real estate agency ERA Singapore (ERA) has signed a Memorandum of Understanding (MOU) with CGS-CIMB Securities (CGS-CIMB) in a bid to promote financial literacy and empowerment. The partnership will see ERA\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/11\/Thomas-Tan-Marcus-Chu-Carol-Fong-and-Raymond-Chin.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":98122,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/slower-take-up-rates-could-dampen-performance-of-property-stocks\/","url_meta":{"origin":116884,"position":3},"title":"Slower take up rates could dampen performance of property stocks","date":"September 19, 2018","format":false,"excerpt":"\r Property sales in Singapore have fallen by 27 percent so far this year. 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