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!!!~~

  

Comments

Popular posts from this blog

Branded Bag Cleaning Service

R ecently, my brother commented that my Prada bag looks like a dumpster bag and no one will steal it since people thought that it is not authentic. I have been using this bag for 6 years and I think I am used to the dirty sights, that's why I don't really mind the dirty issue. Few years back I have tried to wash it with soap powder but those black patches are still there, doesn't really help. I am aware that there are shops that offer bag cleaning service but they charged an exorbitant price. As a result, I have been putting aside the cleaning task for years. Two weeks ago, I finally decided to give it a try. So, I went down to the shop and asked for a quotation. To my little surprise, they quoted me S$140. After some bargain, I paid S$120 for the cleaning service. The shop is located in a mall and therefore they follow normal mall operation hours. The shop accepts credit cards or NETS. The cleaning service takes not more than 10 days. I received SMS before 10 days due ...

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.

Singapore Stock Market 1st Quarter 2013

I am astonished to find that Singapore stock market keep rising from the beginning of Jan 2013. Even though an amateur like me still do not know what is the reason behind, it sounds to be a good news to me. Probably it is the normal annual cycle whereby stock market will go down in year end and rise again on the beginning of subsequent year. Lately, I am monitoring a few stocks as follow:- Singapore Exchange  (good to be rising) Genting Singapore  (good to be rising) Neptune Orient Lines  (still not rising) Raffles Education (is it a good time to buy?) Any expert want to share more on Singapore Stock Market 2013?