Mortgage customers up in arms over CIMB's floor rate hike

Singapore

CIMB Singapore has raised the ire of customers with its move to raise the floor of certain mortgages pegged to the one-month Singapore interbank offered rate (Sibor) - with that floor rate now higher than the prevailing market rate.

From May 18, customers on CIMB's floating-rate mortgages linked to the Sibor or Swap Offer Rate (Sor) must stomach being charged a minimum of 0.9 per cent, compared to the previous floor rate of 0.1 per cent, a notification letter seen by The Business Times showed.