on a side note, when i applied for recent BTO, i specified i wanted to take HDB Loan, if managed to get the flat, can choose bank loan instead? or die die have to take hdb loan liao?
anyway, loan 200k for a 4rm flat, i doubt any bank will wanna entertain me also.. lol
on a side note, when i applied for recent BTO, i specified i wanted to take HDB Loan, if managed to get the flat, can choose bank loan instead? or die die have to take hdb loan liao?
anyway, loan 200k for a 4rm flat, i doubt any bank will wanna entertain me also.. lol
on a side note, when i applied for recent BTO, i specified i wanted to take HDB Loan, if managed to get the flat, can choose bank loan instead? or die die have to take hdb loan liao?
anyway, loan 200k for a 4rm flat, i doubt any bank will wanna entertain me also.. lol
Can, just tell them during the 1st appt..But need to get a bank offer letter by the 2nd appt..
Bank Loan
Buyers who are not eligible for an HDB loan will have to obtain a bank loan if they require a housing loan to finance their purchase of the flat. It is mandatory for all potential HDB flat buyers to obtain a Letter of Offer from the bank before exercising the Option to Purchase.
That article is not really correct. I don't know if its true that HDB caps your monthly repayments at 40% of your income but its certainly NOT true that a bank loan has no such restriction. MAS restricts it to 30% of your monthly income.
I also disagree with the part about HDB loans being more consistent for repayment as its based on CPF. Bank loans are ALSO based on CPF i.e. you and your employer contribute to your CPF ordinary account monthly and the loan will be deducted from your OA. If not enough, you have to top up with cash. So its NOT as though banks can't deduct from your CPF and you have to pay in cash monthly.
If TS is interested, better to go down to HDB and get all the facts and then go to 1 or 2 banks to enquire. Don't go to too many banks if not very luan. Maybe just Maybank and DBS.
Maybank first 3 years if do repayment will have penalty. But anyway the fixed rate is only for first 3 years so after that you have option of remaining with them or if another bank has better rates you can jump ship. And should you jump ship you can always pay off to HDB with whatever spare funds you have and then borrow the remaining from the new bank.
I doubt $200k is too low. Most (if not all) banks require you to borrow at least $100k for home loan. Anything less they are not interested. So yeah, $200k should be fine, doubt any bank will reject based on it being too "small" an amount. I guess if one needs to borrow less than $100k then may have to go HDB liao since most (maybe all) banks require at least $100k.
At the end of the day you need to do your maths as different people have different financial issues. HDB loan may better suit some people, while bank loans may be better for others.
HDB loan is 2.5% interest. When I went to Maybank earlier this month, this is what they offered me:
Year 1: 1.25% (fixed)
Year 2: 1.45% (fixed)
Year 3: 1.55% (fixed)
After the 3rd year I can either continue with them or if another bank offers lower rate I can jump ship. If I stay with them, the interest payable is 3.75% which is the Singapore Residential Financing Rate but I am offered a 1.25% discount.
Which means for years 4, 5 and 6, it would be 2.5% interest. Anything beyond year 7 and the interest gets higher. I believe this part is common to all banks.
So in my case, after 3 years I will shop around. If ANY bank offers me less than 2.5%, chances are I will jump ship. Of course if the best loan on offer at that time is more than 2.5%, then it would probably make more sense for me to either remain with Maybank for years 4-6 or consider HDB loan.
That article is not really correct. I don't know if its true that HDB caps your monthly repayments at 40% of your income but its certainly NOT true that a bank loan has no such restriction. MAS restricts it to 30% of your monthly income.
I also disagree with the part about HDB loans being more consistent for repayment as its based on CPF. Bank loans are ALSO based on CPF i.e. you and your employer contribute to your CPF ordinary account monthly and the loan will be deducted from your OA. If not enough, you have to top up with cash. So its NOT as though banks can't deduct from your CPF and you have to pay in cash monthly.
If TS is interested, better to go down to HDB and get all the facts and then go to 1 or 2 banks to enquire. Don't go to too many banks if not very luan. Maybe just Maybank and DBS.
Maybank first 3 years if do repayment will have penalty. But anyway the fixed rate is only for first 3 years so after that you have option of remaining with them or if another bank has better rates you can jump ship. And should you jump ship you can always pay off to HDB with whatever spare funds you have and then borrow the remaining from the new bank.
I doubt $200k is too low. Most (if not all) banks require you to borrow at least $100k for home loan. Anything less they are not interested. So yeah, $200k should be fine, doubt any bank will reject based on it being too "small" an amount. I guess if one needs to borrow less than $100k then may have to go HDB liao since most (maybe all) banks require at least $100k.
Which is why i mention minus the MSR part for HDB before the latest changes announced 3 months back. So right now banks has a 30% MSR and max 30 years while HDB has a 30% MSR and max 25 years.
This is what they meant by being consistent. "The HDB loan is based on the CPF, which changes as often as Edison Chen makes the news for good behaviour. The best a bank can do is to give you a fixed rate package, which lasts just three to five years." Consistent interest rates which is higher but offers the stability. Rates which does not depends on SIBOR and definitely not on the mood of Feds.
What analyst and most believes in is low interest is not forever. what if the Feds decides to taper & raises up the interest rates? Banks in SEA especially SG depends alot on foreign investment/deposits, with no more hot money coming in and higher interest rates. Hw many ppl(Foreigners) will start pulling out their investment and monies?
And when interest rates goes up after your fixed base rate period, who can you head to? If your remaining loan then is higher than the valuation of your unit, they can do a margin call.. They need the cash to keep their accts in check..
So my key point is to actually ask about your earlier post.
At the end of the day you need to do your maths as different people have different financial issues. HDB loan may better suit some people, while bank loans may be better for others.
HDB loan is 2.5% interest. When I went to Maybank earlier this month, this is what they offered me:
Year 1: 1.25% (fixed)
Year 2: 1.45% (fixed)
Year 3: 1.55% (fixed)
After the 3rd year I can either continue with them or if another bank offers lower rate I can jump ship. If I stay with them, the interest payable is 3.75% which is the Singapore Residential Financing Rate but I am offered a 1.25% discount.
Which means for years 4, 5 and 6, it would be 2.5% interest. Anything beyond year 7 and the interest gets higher. I believe this part is common to all banks.
So in my case, after 3 years I will shop around. If ANY bank offers me less than 2.5%, chances are I will jump ship. Of course if the best loan on offer at that time is more than 2.5%, then it would probably make more sense for me to either remain with Maybank for years 4-6 or consider HDB loan.
Side track a bit, i also have a question. i just go with the application of recent SOBF and i chose HDB loan. However, I have not actually apply for the HLE yet since the result is not out yet. Will there be any problem later on?
Side track a bit, i also have a question. i just go with the application of recent SOBF and i chose HDB loan. However, I have not actually apply for the HLE yet since the result is not out yet. Will there be any problem later on?
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