posb hdb loan

[kurtgoh]

POSB + Amara Sanctuary Resort 

saw this in my mail box.

i understand the banks are offering much lower interest rate compare to hdb.
Currently, i'm still with a debt of 240k with a fixed interest of 2.6%
my initial fear, was on retrenchment and stuff.. hence its better to stick with the hdb..
although the fear still remain..

every month, we are paying $1100 via cpf while $500++ actually contribute to the interest alone..

hence.. was thinking if it's really a wise decision..

of course, the only comforting part is that anything goes wrong with our ricebowls , we can always seek mp's help on the hdb part..

we may be wrong

 

[FlameEvil]

Up to u to access the risk, the 1% difference is it worth getting the bank to repossess your house the moment u stop the repayment.

Sent from the power of my mind using GAGT

 

[badsector]

not looking good.
ur princple payment covers just 55% of the loan.

 

[kurtgoh]

Up to u to access the risk, the 1% difference is it worth getting the bank to repossess your house the moment u stop the repayment.

yeah, thats the factor we fear most

not looking good.
ur princple payment covers just 55% of the loan.

yeah, what to do.. we don't earn much.
whatever is left in our OA, only can cushion us for 6 month.
last year, we tried to clear with what we have in OA along with this 6 month.

 

[numbers]

anything can happen....for me i prefer peace of mind until i fully pay up the house...

now in this economy anytime can kena retrenched, even if u are your own boss also can go out of business....foreigner come in take ur job easily

only rich ppl no need scared. small fries like us better safe than sorry.

 

[badsector]

yeah, thats the factor we fear most



yeah, what to do.. we don't earn much.
whatever is left in our OA, only can cushion us for 6 month.
last year, we tried to clear with what we have in OA along with this 6 month.

since u already knew ur priority. HDB loan has the security u needed.
why created a post here?

 

[archcherub]

i disagree strongly.
interest rates are not only very historical low, they will stay low for the next few years. yes, USA will definitely increase rates, but overall, ur local bank mortgage rates will stay lower than 2.5%

i say they will stay low coz look at all the major economies, all of them are slashing rates. even australia known to have high rates has just slashed their rates.

Also.. the payment u save in the first few years are the BIGGEST because they are interest on a LARGE loan amount.

Dont worry abt retrenchment, we are all worried, but isnt that a bit of "give up eating for fear of choking"?
this is singapore, where most of us can find a job easily... maybe not a better job, nor a better-paying job, but chances are u wont be jobless for long.

disclaimer:- i am not an expert, maybe 1 day something hiong really happen and interest rate really shoot up... but that time, banks also got tons of homes to repossess than they care....

 

[dork32]

Up to u to access the risk, the 1% difference is it worth getting the bank to repossess your house the moment u stop the repayment.

Sent from the power of my mind using GAGT

do you know 1% means, if you dont have much maths, it would seem that this is a very small amount.

Lets take a simple example
loan amount 400k
30 year loan

for 2.6% you pay 1601 per month for 30 years = 576k
for 1.6% you pay 1399 per month for 30 years = 503k
difference 73k. is that a small amount?
this calculation also ignores interest you can earn if you do not pay your loan and keep the cash in the cpf. the difference would be a even larger number.

 

[dork32]

do you know 1% means, if you dont have much maths, it would seem that this is a very small amount.

Lets take a simple example
loan amount 400k
30 year loan

for 2.6% you pay 1601 per month for 30 years = 576k
for 1.6% you pay 1399 per month for 30 years = 503k
difference 73k. is that a small amount?
this calculation also ignores interest you can earn if you do not pay your loan and keep the cash in the cpf. the difference would be a even larger number.

interest of 103k vs 176k. how many per cent difference is that?