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Pay back CPF or HDB first?

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Old 16-04-2018, 09:37 PM   #16
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Yes sounds like a good deal, as my current monthly mortgage only about 500 plus, still got 21 years to go, current OA already accumulated for full payments, not sure if still worth for the switch...
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Old 16-04-2018, 09:59 PM   #17
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....not sure if still worth for the switch...
I'll take the Dyson vacuum cleaner if you don't want it.
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Old 17-04-2018, 12:51 AM   #18
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no charges. POSB absorb lawyer fee. and they also give me a Dyson vacuum cleaner.

the best thing is mthly instalment no need to be $2k to receive home loan rebates of $30 for wife and myself. so long repayment is above $1k both will get $30 each per month from POSB bonus savers
Fyi POSB requires 3 months notice in advance if you wish to redeem your housing loan early.

At the end of the loan period, you'll need to engage your own lawyer to write in to POSB for the redemption of your loan in order to collect your title deed. Else POSB charges $300/year to safe-keep for you.

HDB stores title deed for you for free at the end of the loan period. And you don't need to engage a lawyer to do the paperwork.

Some pointers to consider before into POSB housing loan.
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Old 17-04-2018, 12:12 PM   #19
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actually my main aim is to get the POSB bonus savers (worth $60 for wife and myself). and there is 0.8% additional savings as well

4 year later than decide what to do. if rates shoot up substantially will pay off everything

That's a rather good deal as long as there's no penalty for accelerating repayment (most important) and as long as you can accept the risk the interest rate (after the fixed rate period) might shoot up above the alternative HDB loan rate.
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Old 17-04-2018, 02:01 PM   #20
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no charges. POSB absorb lawyer fee. and they also give me a Dyson vacuum cleaner.

the best thing is mthly instalment no need to be $2k to receive home loan rebates of $30 for wife and myself. so long repayment is above $1k both will get $30 each per month from POSB bonus savers
200k loan can get dyson?
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Old 17-04-2018, 07:20 PM   #21
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oh it appears that now need $500k. when i apply that time my loan only $300k
and the interest has gone up a bit too


https://www.posb.com.sg/personal/pro...kHsg&gclsrc=ds
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Old 17-04-2018, 09:16 PM   #22
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I'm inclined to think that freebies are usually unpopular items that need to be cleared, not to mention the hairdrying function only worth $50 at most.
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Old 18-04-2018, 09:48 PM   #23
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I would think that paying off mortgage is straightforward lower risks of any bank interests costs and refinancing in future. Real estate is good asset to make profit.
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Old 25-04-2018, 09:15 PM   #24
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Hi Finance guru here,

My current loan with bank is about $500,000. Lock in over liao, interest going back up to 2.08 . Looking to refinance at 1.88. Our CPF have $180,000. Should I keep in CPF to earn for 2.5% and let bank charge me $500k for 25year interest or I should clear $180k ?

Correct me if I am wrong, keeping in $180k in CPF seems nett gain of 0.62% . But bank charge the interest of 1.88% x 25 yr straight isn't it?

The bulk if installment in first few years goes to paying interest and not principle amount so which is better off?
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Old 26-04-2018, 09:08 AM   #25
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Hi Finance guru here,

My current loan with bank is about $500,000. Lock in over liao, interest going back up to 2.08 . Looking to refinance at 1.88. Our CPF have $180,000. Should I keep in CPF to earn for 2.5% and let bank charge me $500k for 25year interest or I should clear $180k ?

Correct me if I am wrong, keeping in $180k in CPF seems nett gain of 0.62% . But bank charge the interest of 1.88% x 25 yr straight isn't it?

The bulk if installment in first few years goes to paying interest and not principle amount so which is better off?
isnt that a no brainer? pay back for what? if can go and borrow some more.

it does not matter if your installment goes into principal or interest. your money in the cpf would earn more interest than the savings on interest if you pay back
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Old 26-04-2018, 06:34 PM   #26
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I lol at first few replies and im surprised no 1 said cpf.

As a savvy investor, i guess one ahld go by gerd mentality.

Go clear ur hdb loan first then!
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Old 26-04-2018, 11:50 PM   #27
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Hi Finance guru here,

My current loan with bank is about $500,000. Lock in over liao, interest going back up to 2.08

Interest of 2.08% is really cheap. Already Citibank savings account can pay up to 2% interest. Mind boggling indeed.
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Old 27-04-2018, 12:20 AM   #28
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Already Citibank savings account can pay up to 2% interest.
Actually, that Citibank account can only accumulate interest at that rate, which is a bit of a gimmick. Once you withdraw, the rate resets. And the ~2% rate isn't available until the money is parked for a year.

But yes, mortgage interest rates are still quite low, especially when comparing them to government bonds. Which suggests to me that mortgage interest rates are going to continue to be biased upward for a while.
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Old 27-04-2018, 12:19 PM   #29
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Actually, that Citibank account can only accumulate interest at that rate, which is a bit of a gimmick. Once you withdraw, the rate resets. And the ~2% rate isn't available until the money is parked for a year.
A year is not too long, anyway, with 1 mth sibor at record high, the rate starts at 1.1%. The big catch in my opinion is the 150k limit.

But yes, mortgage interest rates are still quite low, especially when comparing them to government bonds. Which suggests to me that mortgage interest rates are going to continue to be biased upward for a while.
The mortgage rate is low because of the paka between banks in Singapore to offer super low savings rate.
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Old 27-04-2018, 07:13 PM   #30
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A year is not too long, anyway, with 1 mth sibor at record high, the rate starts at 1.1%. The big catch in my opinion is the 150k limit.



The mortgage rate is low because of the paka between banks in Singapore to offer super low savings rate.
FD rates lower than SSB, I cannot imagine any bank is more credit worthy than Singapore government.
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