The increase in interest rate really hurts......

[kyokoto]

Hello, those lower income families are paying 2.6% for their HDB loan. If u can afford a pte property, I believe u are having a good paying job compare to those lower income HDB owners right?

That is why the best way is to buy a BTO, take HDB loan and clear asap... say within 6-7 years.

 

[Asy1um]

sell your house 200k more expensive, problem solve

 

[miko66]

Cannot afford don't buy lo
Can consider rental from hdb very very affordable

 

[The_Davis]

luckily I signed 5 years fixed 2% last year. loan amount was 200k, so that was the only deal.

L7cky ones got 1.4% for 5 yrs

 

[tracerguy]

butch hor monthly installment onlee increased by $400, to rich, sap sap water nia...

 

[aspenco]

Op u mean u weren't aware of all this?

 

[ctan84]

L7cky ones got 1.4% for 5 yrs

200k can't get 1.4% one.

 

[andyhtc]

Private owner with 1.5million confirm uplorry when interest is 4%.

They will have to sell their condo at loss abd buy HDB and beg for concession 2.7% HDB loan. Hard truth.

One can usually refinance to increase loan period and reduce installment.

 

[ahnyaahnya]

I did a tie up with my bank. My excess free cash and assets deposited with them will negate whatever interest rise in my mortgage loan.

So net net I am flat as long as i keep cash in there. Mortgage can rise to 5% won't make a difference.

Cash backed loan ?

 

[ahnyaahnya]

Too expensive already. Govt should force the banks to keep interest rates under 1 Percent for loans

Then savings and FDs will remain less than 1 %.

 

[ahnyaahnya]

It’s Biden and federal fault, not Putin. Putin not hiking rates like crazy unlike the senile Biden

Biden hike rates ?
Not him lah.
The Fed is not under his control

 

[elmohootbigbird]

L7cky ones got 1.4% for 5 yrs

reporting in.

 

[jumpthepig]

luckily I signed 5 years fixed 2% last year. loan amount was 200k, so that was the only deal.

2.8 Banks’ mortgage contracts contained details of how interest rates, repayment amount and fees/penalties will be computed. Banks typically also provided 30 days’ advance notice to customers for any changes to interest rates and the T&Cs as set out in the Code of Consumer Banking Practice by the ABS. The letters notifying customers of changes to interest rates also contained pertinent information on the changes.

https://www.mas.gov.sg/-/media/MAS/...MORTGAGE-PRICING-AND-DISCLOSURE-PRACTICES.pdf

 

[Unclemun]

This is the reason why HDB is the most profitable finance company.

IN 2020/21 Financial Statement, did not HDB make a loss of $358M in sales?

 

[jumpthepig]

What is 100k when you can afford a 800k flat?

Only when the tide goes out do you discover who's been swimming naked.- Warren Buffett

 

[The_Davis]

reporting in.

Congrata. Must be super song

 

[eyz]

L7cky ones got 1.4% for 5 yrs

only POSB accept my loan amount, because it was too low.

 

[weng0202]

That is why the best way is to buy a BTO, take HDB loan and clear asap... say within 6-7 years.

If you have the money to pay off fully then you should take max loan and pay off slowly. Then use the money in OA and invest dividend stocks or etf that give higher than 2.5% annual returns.

 

[yellowcream]

Bank earn when there are alot of transaction volume in the market.

Alot its 1 percent over 20 years.
However we are paying a higher margin of interest than the principle in the early years.

 

[lifeafter41]

Annual interest rate	1.15%	2.25%
Loan amount	$750,000	$750,000
Loan tenure	20 years	20 years
Monthly payment	$3,499.63	$3,883.56
Total interest paid	$89,911.08	$182,054.91
Total amount paid	$839,911.08	$932,054.91

For the same loan amount of $750,000, an increased interest rate means need to pay nearly $100,000 more!

What if it goes to 3.5%?