3.82% For Hdb 2nd Loan

[Kewlboi 0]

Hi recently I bought a resale flat,during 1st appointment the officer told me my interest rate is pegged at 3.82% for my 2nd HDB loan and 22years loan due to my mum age is old where I'm 29 this year.Is this normal?Thanks.

[chronograph 0]

3.82% loan from HDB?

Why don't you try private banks, will be lower.

Hi recently I bought a resale flat,during 1st appointment the officer told me my interest rate is pegged at 3.82% for my 2nd HDB loan and 22years loan due to my mum age is old where I'm 29 this year.Is this normal?Thanks.

[owentch 0]

3.82% loan from HDB?

Why don't you try private banks, will be lower.

If not wrong... HLE allow up to 90% loan.. private bank only up to 80% (70% for property buyers who already have one or more outstanding housing loans at the time of the new housing purchase) more info can visit direct link

If you can afford to pay COV + and 20-30% with cash/cpf (think cpf monies only can cover 5%)..

Edited January 26, 2011 by owentch

[bepgof 20]

Hi recently I bought a resale flat,during 1st appointment the officer told me my interest rate is pegged at 3.82% for my 2nd HDB loan and 22years loan due to my mum age is old where I'm 29 this year.Is this normal?Thanks.

Guess some miscommunications somewhere.

HDB has only 1 "concessionary" mortgage loan interest rate, whether it is your 1st or 2nd time application, which is always pegged at 0.1% + CPF OA's interest rate = 0.1+ 2.5 = 2.6% presently.

You should have already known the rate right after you applied for HLE for resale application submission, wasn't it??

3.82% is quite "high" as compare to prevailing available rates(fix & variable) in the market.http://smp-consulting.com.sg/smpc/?option=com_content&view=article&id=62

Edited January 26, 2011 by bepgof

[Kewlboi 0]

Thanks for the reply.The HLE stated estimated at 3.2%(only know the actual rates during my first appointment) this is my 2nd HDB loan,i had no choice but to sign as I'm doing a contra as all my buyers and sellers already there.When I query the officer he just told me this is the rate they offered.My outstanding mortage loan or current flat is $19k.They take around $137k from my cash proceed.My maximum loan is $175k but I only took $149k for 22 years because of this my financial plan a bit screw up from $675 monthly to $845 monthly.That's mean I can only take one time consessionary loan in my whole life.I wonder if this is a new measure from HDB to cut your eligible loan,to increase the interest rate,to decrease my loan period because I apply with my mum apart from taking half of my cash proceed.If that's the case HDB really don't want us home owner to move around for 2nd time even we're eligible for our 2nd loan.If this is the case they want to set th rate like bank rates where bank rate can be cheaper.

[rainforest 0]

Thanks for the reply.The HLE stated estimated at 3.2%(only know the actual rates during my first appointment) this is my 2nd HDB loan,i had no choice but to sign as I'm doing a contra as all my buyers and sellers already there.When I query the officer he just told me this is the rate they offered.My outstanding mortage loan or current flat is $19k.They take around $137k from my cash proceed.My maximum loan is $175k but I only took $149k for 22 years because of this my financial plan a bit screw up from $675 monthly to $845 monthly.That's mean I can only take one time consessionary loan in my whole life.I wonder if this is a new measure from HDB to cut your eligible loan,to increase the interest rate,to decrease my loan period because I apply with my mum apart from taking half of my cash proceed.If that's the case HDB really don't want us home owner to move around for 2nd time even we're eligible for our 2nd loan.If this is the case they want to set th rate like bank rates where bank rate can be cheaper.

Kewlboi,

I just called up HDB Resale Line about the 2nd Loan ruling, she the officer says that the higher interest rate applies when your outstanding loan of your current flat has not been redeemed at the time of your purchase of your next flat ( in this case ) your first appointment . But then upon the sale and redemption of the first loan ( maybe on legal completion 2nd appointment I guess) , the interest rate of your new loan will revert back to 2.6%.

In your case, since you are doing contra, you would not have been able to discharge your existing loan by the first appointment.

This is my understanding from my tele conversation , I asked it because my sister has a first appointment tomorrow for purchasing resale with HLE ( 2nd time HDB loan).

Perhaps you can try calling HDB Resale Hotline at 1800 - 866 3066 to check on your case. They should have it on their computer.

Edited January 27, 2011 by rainforest

[Plastic3 0]

For those who buy their next flat before selling the existing one, the proceeds from the sale of their existing flat would not have been realised when they first apply for an HDB loan.

To help them buy a flat, HDB will first grant them a bigger loan at commercial interest rates after they draw down their CPF balance. The commercial interest rates are pegged to the 3-month average non-promotional interest rate for HDB flats offered by the 3 local banks and is currently at 3.82%. After the sale of their existing flat, they will have to redeem this loan with the full CPF refund from sale of the existing flat and part of the cash proceeds. Upon redemption, the loan will be converted to a concessionary rate loan. The new policy affects those who submit their Resale flat HLE Application on or after 5 Mar 2010.

[bepgof 20]

Hi Mark, thanks for the clarification.

Edited January 27, 2011 by bepgof

[Kewlboi 0]

Kewlboi,

I just called up HDB Resale Line about the 2nd Loan ruling, she the officer says that the higher interest rate applies when your outstanding loan of your current flat has not been redeemed at the time of your purchase of your next flat ( in this case ) your first appointment . But then upon the sale and redemption of the first loan ( maybe on legal completion 2nd appointment I guess) , the interest rate of your new loan will revert back to 2.6%.

In your case, since you are doing contra, you would not have been able to discharge your existing loan by the first appointment.

This is my understanding from my tele conversation , I asked it because my sister has a first appointment tomorrow for purchasing resale with HLE ( 2nd time HDB loan).

Perhaps you can try calling HDB Resale Hotline at 1800 - 866 3066 to check on your case. They should have it on their computer.

Thanks rainforest,

that's to say if the home owner have outstanding mortage loan with HDB even despite 30% balance,they would have to pegged to 3.82% interest rate for the 2nd loan unless the owner sell the flat first and then bought the 2nd flat at different time,HDB will grant them the concessionary loan.Need to call the Hotline then..haizzz...