Repay HDB Loan

[mydelta]

Hi Everyone,


Just to get more opinions.


I bot a 5 room Punggol flat >10 years ago as 1st timer.
Get HDB loan for 30years.


Now, me and my wife have a choice to fully repay the loan.


Shall we do it? Just want to get your opinions for any blind spot we did not know. Thanks.

 

[JuniorLion]

Depends on your objectives moving forward.

1) Do you want to buy another property?
2) Do you want to invest in shares/stocks?
3) Do you want to have a peace of mind?

I'm of the opinion that one should repay the HDB loan as early as one can, so to have a peace of mind, and then use any excess to do investment.

If you're more adventurous, then don't repay. Use the excess money right now to invest in shares that has a potential of > 2.6% yield.

 

[eric3743]

1. Suggest you do check how much you need to pay back this HDB loan.

2. And how much it need to return to CPF with interest and lock-in, if applicable.

As you need to find out more on from these 2 institutions before making further decision.

HDB loan return do include interest and from CASH only.
CPF return do include interest.
These interest may take a share in your cost.

Hence you have to visit HDB office to see how much you need to return in full.
And this may include returning money from CPF with interest calculated up to date.

As for CPF you need to find out if you can take any money out or must remain, meaning one-way in until your retire.

In the end it is like putting your money back into CPF period.


Finally do consider having some money floating around in case of emergency.

 

[SBC]

What will you do after repaying? Targeting 2nd property?

Accured interest gao gao.

 

[sg_investor]

What is the rule for early payment for private apt loan? Outside the lockin period can I pay 10k without penalty every week my small bitcoin holding doubles?