HDB loan or POSB housing loan?

[Alpha0]

Posb first 8 years locked rate.

Anyone on posb housing loan ?

Need advices on it.

First time buyer. Loan amount is around 420 to 440k.

Thanks.

 

[fire]

i suggest hdb loan

 

[vuzuuu]

I took DBS loan, 3mth SIBOR + 1.38% and no lock in period. Instalment will begin in Oct. I'm only loan 155k from DBS.
Most of my frens take DBS loan also.
You are thinking a big loan and you should consider the interests carefully.
If I"m not wrong HDB loan is around 2.5% interest.
Anyway, congrats on your new place.

 

[fire]

loan below 200k, take bank loan. > 200K think better take hdb loan.

interest is one thing, should consider as well in the event you cannot make payment.

 

[SKWSMC]

If your loan period is more than 20 years, it is better to take HDB loan. Long term the interest is stable even during the high interest period.

 

[Wanderlust]

Sorry to ride on this thread. Is it true if take bank loan will need to come out with 5% cash for the initial downpayment of 20%? Whereas if take HDB loan, all will deduct from CPF?

 

[Cartoon0512]

Sorry to ride on this thread. Is it true if take bank loan will need to come out with 5% cash for the initial downpayment of 20%? Whereas if take HDB loan, all will deduct from CPF?

Yes , for bank loan u need to fork up 5% cash for the down payment , rest by cpf . If is hdb loan , down fully by cpf .

 

[GenuineSeller]

Posb first 8 years locked rate.

Anyone on posb housing loan ?

Need advices on it.

First time buyer. Loan amount is around 420 to 440k.

Thanks.

You may want to answer some of these questions to better decide:-

1) any intention to sell this house in 5, 10yrs' time?
2) how many years do you intend to loan?
3) combined OA $1,700 or more or do you intend to pay partially by cash?

 

[kwon33]

The rates between post fixed 8yrs and hdb loan is not much. If u intend to take bank loan might as well take other bank fixed rate like occasion or may bank. Lock in only 3 yes after that I can choose to refinance with another bank or with may bank to lock in another few yrs1. The difference in interest rate is more than double so effectively every yr u are saving thousands of dollars just for interest. The rates will increase but over many yrs. By the time it hit the same rate as hdb loan rates (I give it 10-20yrs, u would have saved more than u could have spent in interest alone.

My take. Still a good time to go for bank loan, and make partial payment whereas possible so u rip off the low rates before it goes up.

 

[dustyRoom]

But OA account can generate interest, no?

 

[kwon33]

Bank loan can also use CPF OA to repay. It's basically the same as HDB loan except that you get it from bank and at a lower rate. Risk factor will be the rates are not as fixed as HDB loan.

 

[BEWARE]

unless you are confident to clear the loan within that 8 to 10 years or at least bring the outstanding low enough that even rise in interest rate has minimum impact on you.

ALternatively, you may want to take bank fixed rates and play by ear. If you need help in calculation, can PM me.

 

[GenuineSeller]

Hi,

At the current market, its more advisable to take up bank loan.
Even if the interest rate rises in the near future,you're still paying much less than what you're paying with HDB loan.

Unless you're a person who is unable to pay off the loan timely,is more advisable for you to go for HDB loan as their regulations are not as strict compared to bank whereby defaulting on payment is much more strict.

However, for your loan size of >400k, is always better to take up the loan from the bank.
At the current interest rate going, you will save more than 50k over this repayment period.
You might doubt my credibility of 50k but you'll realise that is true.
You may pm me if you want to know more and why is it so
Cheers!

$50k savings over repayment period is not realistic as you are assuming interest rate remains low for 25 to 30yrs?

 

[Eatdrinkclubclub]

$50k savings over repayment period is not realistic as you are assuming interest rate remains low for 25 to 30yrs?

Interest rate do not shoot up overnight so is pretty true.
Even if it shoots up,by then you've already managed to save enough.

 

[GenuineSeller]

Interest rate do not shoot up overnight so is pretty true.
Even if it shoots up,by then you've already managed to save enough.

So you mean everyone should opt for bank loan?

 

[Eatdrinkclubclub]

So you mean everyone should opt for bank loan?

Not saying its a must as everyone financial power is different.
But it's highly recommended to be taking bank loan given the current market.

 

[GenuineSeller]

Not saying its a must as everyone financial power is different.
But it's highly recommended to be taking bank loan given the current market.

Since savings is a lot why not for everyone? Nothing to do with financial power isn't it?

 

[BEWARE]

Not saying its a must as everyone financial power is different.
But it's highly recommended to be taking bank loan given the current market.

then again, this is true only when the loan amount is of a certain level. Generally, loan amount of 200K or lesser, highly not recommended to switch around or in and out due to legal fee, valuation, etc.

 

[window_12]

both are not the some ?

 

[Eatdrinkclubclub]

Financial power comes into play as not everyone are sure that they won't default as the regulations with the bank is much more stricter and tougher.
Generally for people who has more than one property is advisable to cashout on the larger one and redeem away the property that has lesser to pay so they won't be paying two side of the interest.