Skip to main content

HDB Mortgage Strategy

Several years ago, when I bought my first HDB flat, I am shocked to find out that I have paid more than S$20K of interest in 4 years time. As a result, I cleared out my CPF Ordinary Account for the second time to reduce the monthly repayment amount. Probably most of you can guess when is the first time, bingo, when you purchase HDB, HDB will clear off all the amount in Ordinary Account and loan you the balance. In another word, if one has about 30% of money in Ordinary Account for example, he/she can only get 70% loan. The reason why I don't reduce the mortgage tenor is because who knows, I might face financial difficulty in the future and keeping the 30 years loan period with lower monthly installment will be a better choice. I feel relief thereafter.

Nevertheless, I start to regret now! I shouldn't have done this!

As of current rate (history shows that this is quite a stable rate), CPF is paying interest of 3.5% per annum for the first S$20K in Ordinary Account and 2.5% for the amount thereafter. 

I have a wish. I wish that I am able to afford 2nd property (condo in Singapore) in 2017 without selling off my HDB. Therefore, I think not going for partial repayment will be a better strategy. By living in for so many years, I really can't bear to sell it off, the emotional is there. The property market shows sign of going south now. I hope that by 2017, private property should be affordable to me and all the current cooling measure by government will no longer be there.

Adding one more property needs bullet. Hence, the sum that I spent on lump sum payment is the bullet that I need since I do not have much cash on hand.   

By sharing this, hope that this can help the rest who are in similar situation as me to better plan your best suit strategy before making any decision.


~~Cheers!!!~~

  
Labels:

Comments

Post a Comment

Popular posts from this blog

Safe Deposit Box

Have been searching high and low in Singapore to rent a safe deposit box but to no avail. Some of the bank said all their safe deposit boxes are full and the waiting list is pretty long; some of the bank said they no longer have this service; one of them said I need to sign-up for fixed deposit of S$20K before I can rent it. I tried to check on private safe deposit box service and small space rental, the price is far too much higher as compared to the rate offered by the bank. When I am about to lost hope, finally I found "Bank if China" in Raffles Place. I am required to open a saving account with them and maintain minimum of S$1500 in the account to avoid monthly fall below fee. Although I am unable to visit the bank on weekdays as their opening hours fall within my working hour and I am not working nearby, the good news is the bank is open on every Saturday 9am to 11:30am.
Post a Comment
Read more

First Home in Singapore

L ike many other Singaporean, at theage of early twenties, I am planning to purchase my first home. At this stage,I am at a cross junction whereby I will have to choose what type of home I needto go for. Since I am not rich and I do not want any external assistance(borrow money from parent), private property is definitely out. One will not beable to feel sense of achievement by asking for parent or relatives’ help.   Looks like I am going for public housing (HDB) then. Filtering EC and DBSSwhich I can’t afford, I still have to decide on how many flat rooms of HDBflats I am going for: studion / 2 rooms / 3 rooms / 4 rooms / 5 rooms / EM. By the way for thosewho are not familiar with Singapore public housing, 3 rooms flat doesn’t mean flatwith 3 bedrooms and 5 rooms flat doesn’t mean flat with bedrooms. On top ofthat, there are several models for resale flats. For instance there are model A4 rooms flats, model S 4 rooms flat, etc. They are varies in term of size, 4rooms flats are ...
1 comment
Read more

Attending those "Get rich" seminars...

S everal years ago, I wanted to learn how to trade Forex in order to supplement my day job salary. This is due to I was drawing low day job salary. I do not know how to trade/invest in other stock markets apart from SGX. As a result, Forex should be what I am looking for since I can do it at night or in the wee hours. So, I started to read some Forex books and google to learn about it. Alamak, it is so technical and "Chim"! Since I am not from Business background and being less smart person, I literally don't understand. Subsequently, I came across this advertisement on Forex seminar. Without hesitation, I attended the free 3 hours preview. In the preview, the speaker is so good at presenting and as a result, manage to convince such a big crowd of people to sign-up for the seminar. The speaker definitely has the professional speaker quality. The price for the 2.5 days course is S$4K. Some of the content in promoting the course as follow:- It is so affordable be...
Post a Comment
Read more