How does HDB loan work?

[swirler]

Just match your OA contribution as your monthly repayment amount and see how many years is that.

Refinance your loan and top up with your bonus payout in cpf only if your OA+SA exceeds 60k.

How about this strategy?

 

[ntwdavid]

sgcalculators.com

 

[Kcusts]

If cpf increase or drop their interest..will it affect those who currently have a loan with HDB? Or are their interest already "locked in"?

 

[JoBros]

Need help with HDB loan monthly instalment calculation.

Hi I have a HDB loan of $50,900 at 2.6% p.a. with a 12year repayment period.
My monthly instalment is $413 which means I am paying in total $59472.
Could anyone help me figure how does the math of 2.6% make $50900 into $59472 ?

 

[theblueark]

Hi I have a HDB loan of $50,900 at 2.6% p.a. with a 12year repayment period.
My monthly instalment is $413 which means I am paying in total $59472.
Could anyone help me figure how does the math of 2.6% make $50900 into $59472 ?

Interests are calculated based on how much loan balance there is at the end of each month.

Go to any website that has a mortgage calculator and you will be able to see the monthly installments and often the amortization schedule. For 50,900 at 2.6% over 12 years, technically you should be paying 411.86 per month. Usually it's rounded up to $412, so not sure how come yours is $413.

Nevertheless, what will happen is your final payment will be less than $413. In this case, based on my calculation, your final payment would be $219.97. Effectively you'd have paid $8,378.97 in interests, or $59,278.97 in total.

 

[leungchunghong]

In conclusion, paying slow is better than paying fast?