HDB loan or POSB housing loan?

[GenuineSeller]

The topic is about HDB flats isn't it? HDB or bank loan......

 

[cct75]

So you mean everyone should opt for bank loan?

Criteria 1: Can you sign up with HDB Loan? If yes, then you got option to choose HDB or Bank loans.

Criteria 2: If you cannot sign up with HDB Loan like me (back then the HDB loan ceiling salary was around $3.5K per month and I was slight above $3.5K hence no choice but turn to bank loan)

For Criteria 1 type, if you want a peace of mind and do not mind the current HDB interest rate of 2.6% is considerably higher than most of the bank rates (mostly <1.5%), than HDB loan is the way to go as who knows when US Federal Government Banking Rates will go haywire and the low bank rates might shoot way beyond 2.6% (although seemingly will not happen in the near future if I am correct).

For Criteria 2 type, we can only pray and try to clear off our outstanding loans before the bank rates equals or exceed HDB loans than we will be in a win-win situation. Correct?

PS: For Criteria 1 type, if you exit HDB loan and opt to sign for Bank loan, this would be a one-way ticket and you will no longer be able to return to HDB loan.

 

[cct75]

The topic is about HDB flats isn't it? HDB or bank loan......

The TS is asking for advise on choosing between HDB loan or POSB (or other banks) loan.

 

[GenuineSeller]

The TS is asking for advise on choosing between HDB loan or POSB (or other banks) loan.

Of course I am aware

 

[GenuineSeller]

Criteria 1: Can you sign up with HDB Loan? If yes, then you got option to choose HDB or Bank loans.

Criteria 2: If you cannot sign up with HDB Loan like me (back then the HDB loan ceiling salary was around $3.5K per month and I was slight above $3.5K hence no choice but turn to bank loan)

For Criteria 1 type, if you want a peace of mind and do not mind the current HDB interest rate of 2.6% is considerably higher than most of the bank rates (mostly <1.5%), than HDB loan is the way to go as who knows when US Federal Government Banking Rates will go haywire and the low bank rates might shoot way beyond 2.6% (although seemingly will not happen in the near future if I am correct).

For Criteria 2 type, we can only pray and try to clear off our outstanding loans beyond the bank rates equals or exceed HDB loans than we will be in a win-win situation. Correct?

PS: For Criteria 1 type, if you exit HDB loan and opt to sign for Bank loan, this would be a one-way ticket and you will no longer be able to return to HDB loan.

TS has a choice and therefore this thread for discussion..... For yours, you also have a choice, that is which bank.

 

[Imperado]

Don't forget bank interest will change after some years but of cause if you can repay within a few years from loan.. bank is better, interest lower.

And.. I think HDB is more lenient and late payment as compared to bank

 

[cct75]

Don't forget bank interest will change after some years but of cause if you can repay within a few years from loan.. bank is better, interest lower.

And.. I think HDB is more lenient and late payment as compared to bank

That is true but for those who's salary ceiling combined or single (Single Citizenship Scheme) that is above the HDB Loan salary cab, do we have any choice beside which banks to opt for?

 

[Eatdrinkclubclub]

Yes you guys are right in each way.
That is why for people who're out of lock-in right now is highly advisable to go for fixed rates.

P/s: I don't work for any banks. And this should be the way to save money.

 

[Skypower]

If I choose POSB loan, do I repay POSB monthly payment using CPF?

 

[Genesisz]

Don't forget bank interest will change after some years but of cause if you can repay within a few years from loan.. bank is better, interest lower.

And.. I think HDB is more lenient and late payment as compared to bank

Yes. When it comes to default action due to any act or omission of the house owner (or the principal as the term calls it), HDB seems to take a longer time to proceed with any form of action against the owner or principal.

In the case of bank loans, the banks are more swift and decisive to initiate court proceedings (demand letter, WOS, Judgment in Default, Writ of Sale and Seizure and Garnishee Orders etc.) against the owner or principal.

 

[killerer]

Hi not to hijack the thread but instead of opening a new one, might as well put here for benefit of all. I am in same boat as TS, between POSB HDB Loan and HDB Concessionary Loan.

I plan to sell my HDB after 5 years.

Considering POSB HDB Loan because it has a 2.5% cap for 8 years. So I will definately be paying lower than HDB's 2.6% no matter what. Correct?

I may not be able to refinance after 3 years but that it gives me protection against inflation for 8 years. Correct?

TS, have you decieded which loan to take and why?

Thanks!

 

[cokezero]

So many in the same boat.

Not sure if I am able to get HDB loan though, but POSB giving me an option to pledge my savings for the required loan. Doubt HDB allows pledging.

Is there such thing like a double loan from both HDB and POSB ?

 

[Gixxerfied]

So many in the same boat.

Not sure if I am able to get HDB loan though, but POSB giving me an option to pledge my savings for the required loan. Doubt HDB allows pledging.

Is there such thing like a double loan from both HDB and POSB ?

Dbl housing loan no..

Either HDB or Banks..Once u go banks then u cannot opt back to HDB in the future with the same property..If you go HDB initially then u can opt to refinance with banks next time..

 

[killerer]

Dbl housing loan no..

Either HDB or Banks..Once u go banks then u cannot opt back to HDB in the future with the same property..If you go HDB initially then u can opt to refinance with banks next time..

I didnt see any criteria on their website that says that you cant switch to HDB Loan if you are on Bank Loan. Did I miss anything out?

Here is the page 'Who can apply HDB Loan?'

 

[Gixxerfied]

I didnt see any criteria on their website that says that you cant switch to HDB Loan if you are on Bank Loan. Did I miss anything out?

Here is the page 'Who can apply HDB Loan?'

I believe someone had ask HDB before..And also HDB does not refinance loans(Which is what u need if u wish to change from HDB to bank to vice versa)..So far, cant really find another who refinance back to HDB from Bank..

One important note is that once you decided to use Bank loan be it POSB or any other banks, that is a one-way ticket. You cannot then switch back to HDB loan. However, I believe taking HDB loan can switch to Bank loans but still one way transfer only.

Assuming you can repay your loan within 8 years, I would suggest you take other bank loans such as DBS, MayBank, SCB, etc.

I am not suggesting you should but take my example, I signed up at first with HLB (no choice as they were the first bank to accept my loan application) and stayed with them for 2 years before refinancing with SCB.

My outstanding loans with SCB is just under $200k and my monthly repayments are just under $700 which is 1 month SIBOR floating and that is around 1.1~%.

If I was with HDB, the interest is 2.6%, that would means monthly repayments at around $1650.

Of course like all knows, if one days US Federal rates go crazy, Bank loans can easily shoot beyond 2.6% but well .. at least not in the near future?

Flat owners, whether you are a Singapore Citizen (SC) or a Singapore Permanent Resident (SPR), may refinance your HDB loans with the banks. To do this, you may transfer your HDB remaining mortgage loan to the bank.

Once you have refinanced your existing HDB loan with the bank, you cannot refinance that loan with HDB subsequently.

HDB InfoWEB: Refinance your Mortgage Loan : Living in HDB flats : Servicing your Mortgage Loan

 

[killerer]

I believe someone had ask HDB before..And also HDB does not refinance loans(Which is what u need if u wish to change from HDB to bank to vice versa)..So far, cant really find another who refinance back to HDB from Bank..

I see... I guess they didnt specifically put it down in writing but from the technicalities, it means you cant...

Which brings to the next factor. Refinancing.

This could be very helpful for everyone like meeeee

 

[300manowar]

any idea how much is the insurance mortgage payable ? any suggestion to minimise the premium ?

 

[krazyboi]

need some advice.. currently I'm on a Debt Management Programme by CCS with several banks due to loans.. it's going take around 5-6 years to clear the outstanding with the banks with the arranged monthly payment

am I still eligible to apply loan from HDB?
I don't think the banks are willing to loan me anymore..

 

[fire]

need some advice.. currently I'm on a Debt Management Programme by CCS with several banks due to loans.. it's going take around 5-6 years to clear the outstanding with the banks with the arranged monthly payment

am I still eligible to apply loan from HDB?
I don't think the banks are willing to loan me anymore..

it will be difficult for you to obtain hdb loan. When hdb assessed your loan eligibility, all your expenses, cc, loans and any installments..etc are taken into account. if you apply as a couple, most likely it will be based solely on your spouse.

 

[Gixxerfied]

need some advice.. currently I'm on a Debt Management Programme by CCS with several banks due to loans.. it's going take around 5-6 years to clear the outstanding with the banks with the arranged monthly payment

am I still eligible to apply loan from HDB?
I don't think the banks are willing to loan me anymore..

Even if yes, doubt the amt would be high and like what @fire mention, likely to be based solely on your spouse sole income..