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Housing loan, can you pay extra for principle amount only?

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Old 11-08-2018, 11:18 PM   #1
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Housing loan, can you pay extra for principle amount only?

I came across this from US property loan,
Paying the monthly installment, andextra amount to deduct the principle only.
Is it possible for Singapore housing loan?

"Make extra principal payments. When you send in your monthly payment, most mortgage lenders will allow you to make an extra payment and mark it "principal only," meaning that this payment will go to pay down the principal rather than both the principal and interest on the loan."
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Old 11-08-2018, 11:22 PM   #2
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It's a bit like an early repayment. HDB allows you to do this without penalty. Private bank loans mostly don't allow you to do this within the lock in period.
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Old 11-08-2018, 11:50 PM   #3
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Singapore Banks will mostly not allow it.

You can make extra repayments when you refinance your loans.
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Old 12-08-2018, 07:48 AM   #4
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Not true. My new loan w banks allow me to do so at no charges.

Singapore Banks will mostly not allow it.

You can make extra repayments when you refinance your loans.
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Old 12-08-2018, 07:49 AM   #5
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If repayment takes place after the lock-in period, how would one know how much goes toward reducing the principal ?

It's a bit like an early repayment. HDB allows you to do this without penalty. Private bank loans mostly don't allow you to do this within the lock in period.
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Old 12-08-2018, 08:43 AM   #6
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If repayment takes place after the lock-in period, how would one know how much goes toward reducing the principal ?
Is easy. Just create a amortization table.
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Old 12-08-2018, 09:01 AM   #7
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Not true. My new loan w banks allow me to do so at no charges.
Mostly doesn't mean all.
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Old 12-08-2018, 09:53 AM   #8
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Not true. My new loan w banks allow me to do so at no charges.
Which bank is this ?
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Old 12-08-2018, 11:43 AM   #9
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Which bank is this ?
Refer to loan agreement. There will be clauses on prepayments. You can continue the same monthly instalments over a shorter period or reduce the instalment without reducing the period of loan with prepayment.
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Old 12-08-2018, 01:57 PM   #10
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Dbs, uob and ocbc. All 3 that talked to me say can.

I ended up with uob. Clause 100% say can do partial repayment as and when I like.


"Partial Prepayment

Partial Prepayment of the Loan may be subject to fulfillment of all of the following conditions:

A. Serve the bank 1 month's prior notice or in lieu of such notice, pay the Bank 1 month's interest on the amount prepaid

B. No prior notice for redenktion of the loan has been given to the bank

C. At the time of participants prepayment, remaining loan tenor is not less than 5 years

D. Each partial Prepayment shall be in the sum of not less than $5,000 and in multiples of $1,000."

Which bank is this ?

Last edited by pcmdan; 12-08-2018 at 02:06 PM..
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Old 12-08-2018, 02:39 PM   #11
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Dbs, uob and ocbc. All 3 that talked to me say can.

I ended up with uob. Clause 100% say can do partial repayment as and when I like.


"Partial Prepayment

Partial Prepayment of the Loan may be subject to fulfillment of all of the following conditions:

A. Serve the bank 1 month's prior notice or in lieu of such notice, pay the Bank 1 month's interest on the amount prepaid

B. No prior notice for redenktion of the loan has been given to the bank

C. At the time of participants prepayment, remaining loan tenor is not less than 5 years

D. Each partial Prepayment shall be in the sum of not less than $5,000 and in multiples of $1,000."
Thanks really useful.
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Old 12-08-2018, 03:15 PM   #12
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ok thanks all, i think Singapore bank call this Partial repayment.

DBS has to request for this repayment.
"The total partial repayment amount from cash and/or CPF must be minimum $10,000 and in multiples of $1,000." So not likely a monthly kind of thing, more like yearly?

Need to check what are the fees/interests charge for repayment, since im still in my 2nd year lock in period.
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Old 12-08-2018, 03:21 PM   #13
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Can't do it for Maybank. So stuck with them and they're able to raise the rates as much as they like.
1st and last time i'm signing a loan package with them.
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Old 12-08-2018, 05:20 PM   #14
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If repayment takes place after the lock-in period, how would one know how much goes toward reducing the principal ?

Divide interest rate by 12, multiply by loan amount remaining. That's the amount of interest you are paying for that month. Subtract that from the monthly payment to get the amount that the principal will be reduced by.
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Old 12-08-2018, 05:39 PM   #15
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I was previously with DBS bank loan for hdb. Not true, u can do it many times in a year.

There are no fees or charges. I got the loan 4 years ago and have made multiple partial repayments. Have fully paid the loan since den.

No fees for partial and full last min repayment.

Main reason why I switch is because DBS have to pay on 10k whereas uob is 5k

ok thanks all, i think Singapore bank call this Partial repayment.

DBS has to request for this repayment.
"The total partial repayment amount from cash and/or CPF must be minimum $10,000 and in multiples of $1,000." So not likely a monthly kind of thing, more like yearly?

Need to check what are the fees/interests charge for repayment, since im still in my 2nd year lock in period.

Last edited by pcmdan; 12-08-2018 at 05:43 PM..
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