What Am I Paying To Hdb Monthly?

[snowpear 0]

i

yes. and the installment needs be less than the monthly CPF contribution so the funds in OA can grow. btw, now first $20k still earning 3.5% pa interest?

3.5% yes, but the extra 1% goes into SA

[dophlinstar 0]

So if let say i have $30k cash on hand and will be taking abt $100k loan. Will it be better to use it to payoff the loan straight or put to CPF OA to earn the interest?

Got confused reading all the info

[bepgof 20]

Here are the tables: work up to 10 yr (comparisor of OA vs loan of various interest)

1. 300k loan, 30yr tenure - provided OA principal & accured interest untouched and keep added on, then it is good to remain the sum in OA (see sht 4's accumulated ineterests after 10 yrs.

http://img819.imageshack.us/img819/1341/lo...0k30yrpage1.jpg

http://img825.imageshack.us/img825/3714/lo...0k30yrpage2.jpg

http://img836.imageshack.us/img836/7541/lo...0k30yrpage3.jpg

http://img691.imageshack.us/img691/1315/lo...0k30yrpage4.jpg

2. 300k loan, 10yr tenure.- save interest (loan) a lot more if pay fast.

http://img411.imageshack.us/img411/8396/lo...0k10yrpage1.jpg

http://img143.imageshack.us/img143/9172/lo...0k10yrpage2.jpg

http://img715.imageshack.us/img715/3335/lo...0k10yrpage3.jpg

http://img510.imageshack.us/img510/6862/lo...0k10yrpage4.jpg

Edited February 14, 2011 by bepgof

[bepgof 20]

Assume tenure=30yr, hdb concession loan at 2.6%, CPF OA at 2.5%. I work out a 3-year period for comparison:

1. For loan amount at 100K at 2.6%, the interest for first 3 years = $7543.03

2. For loan amount at 70K at 2.6%, the interest for first 2 years = $5280.11

You can save $ 2262.92 if loan 70k instead of 100k.

3. If put 30K in OA, after 3 years, would earn you interest of $2,334.

Conclusion: you can SAVE $71.08 over the 3 YEARS(one yr SAVE $23.69), if you put 30K in OA & take mortgage loan of 100K. The interest earn on OA would be more over the next 27 yrs. The "resultant" saving would be more, question is: no one will know what would happen tmr. Can you wait?.

For housing mortgage liability: always settle it as fast as you could. Investment can wait.

So if let say i have $30k cash on hand and will be taking abt $100k loan. Will it be better to use it to payoff the loan straight or put to CPF OA to earn the interest?

Got confused reading all the info

Edited February 15, 2011 by bepgof

[marshmallow 0]

Here are the tables: work up to 10 yr (comparisor of OA vs loan of various interest)

1. 300k loan, 30yr tenure - provided OA principal & accured interest untouched and keep added on, then it is good to remain the sum in OA (see sht 4's accumulated ineterests after 10 yrs.

http://img819.imageshack.us/img819/1341/lo...0k30yrpage1.jpg

http://img825.imageshack.us/img825/3714/lo...0k30yrpage2.jpg

http://img836.imageshack.us/img836/7541/lo...0k30yrpage3.jpg

http://img691.imageshack.us/img691/1315/lo...0k30yrpage4.jpg

2. 300k loan, 10yr tenure.- save interest (loan) a lot more if pay fast.

http://img411.imageshack.us/img411/8396/lo...0k10yrpage1.jpg

http://img143.imageshack.us/img143/9172/lo...0k10yrpage2.jpg

http://img715.imageshack.us/img715/3335/lo...0k10yrpage3.jpg

http://img510.imageshack.us/img510/6862/lo...0k10yrpage4.jpg

Assume tenure=30yr, hdb concession loan at 2.6%, CPF OA at 2.5%. I work out a 3-year period for comparison:

1. For loan amount at 100K at 2.6%, the interest for first 3 years = $7543.03

2. For loan amount at 70K at 2.6%, the interest for first 2 years = $5280.11

You can save $ 2262.92 if loan 70k instead of 100k.

3. If put 30K in OA, after 3 years, would earn you interest of $2,334.

Conclusion: you can SAVE $71.08 over the 3 YEARS(one yr SAVE $23.69), if you put 30K in OA & take mortgage loan of 100K. The interest earn on OA would be more over the next 27 yrs. The "resultant" saving would be more, question is: no one will know what would happen tmr. Can you wait?.

For housing mortgage liability: always settle it as fast as you could. Investment can wait.

hey bro, thanks for illustrating the points clearly. that's why i mentioned before that the sum in OA needs to be significant enough for it to work.

it's an individual choice to whether pay off the loan earlier or to put some money aside and take larger loan. the choice should suit the individual goals.

My case is similar to your example Case 1. We choose to park the funds in OA becos we would like to have some funds ready for purchase of a 2nd property in future (well, if possible....). if we wipe out OA and pay shortest tenture possible, is much harder to accumulate the funds again and we may not be able to enter the market when the time is right.

should we decide not to purchase 2nd property later, still have the choice to make lump sum payment to HDB and pay off the loans with the accumulated funds.

[chronograph 0]

For housing mortgage liability: always settle it as fast as you could. Investment can wait.

After reading thru, i'm never good with figures, only understand this statement, which is what I'm working hard to achieve.

[bepgof 20]

True that each has different financial needs & wants at different timing. Life is full of lots of uncertainties with many volatile "variables" which always intercorrelate to each others, whether in tangible or intangible forms, a major "wrong" move will lose the entire game.

To stress, as singaporeans, always keep the HDB unit as it is your "right" and subsidised by gov in one way or another, foreigners can't "enjoy". "Fight" with foreigners in pte property when time's right, at same time enjoy the subsidy by gov.

Edited February 15, 2011 by bepgof

[therat 18]

To stress, as singaporeans, always keep the HDB unit as it is your "right" and subsidised by gov in one way or another, foreigners can't "enjoy". "Fight" with foreigners in pte property when time's right, at same time enjoy the subsidy by gov.

I'm regret for not applying CPF grant when I purchase my first HDB unit.

[random_username 0]

I'm regret for not applying CPF grant when I purchase my first HDB unit.

cannot apply for subsequent purchase ah?

[therat 18]

cannot apply for subsequent purchase ah?

unless HDB increase the salary cap

[Jethro 0]

I'm regret for not applying CPF grant when I purchase my first HDB unit.

Yes the latest residential properties measures has somewhat taken its effect, so unless you're buying for long term investments or own stay you can only wait until the MOP is over.

http://www.propertiesofsingapore.com/banking-finance for any mortgage needs.

Edited March 8, 2011 by Jethro

[random_username 0]

Yes the latest residential properties measures has somewhat taken its effect, so unless you're buying for long term investments or own stay you can only wait until the MOP is over.

http://www.propertiesofsingapore.com/banking-finance for any mortgage needs.

i'm not understanding this - would you elaborate please? thanks.

[edenstrauss 3]

After applying for first-timer grants, the owners will need to pay back the amount (not sure if it includes accrued interest) when they reapply for a new flat thru HDB.

I was told by the HDB officer that this is due to parity issue since we've benefited for the first time.

They've made it so complicated with policies that it's not so easy to just sell off & shift another flat nowadays. haiz...

[steelze 0]

Read here:

http://img80.imageshack.us/img80/1276/hdbloan.jpg

PM me your email, if you like to study the formular.

hi bepgof, can email me the formula? thanks! steelze@hotmail.com

[Always Happy 0]

Hi bepgof, can help check?

I have a 230k outstanding CPF loan, mthly 930 per mth for 30yrs.

If have 100k lump sum to reduce my loan, how much will it effectively bring down?

Will it be so simple as to $231-$100 =$131k remaining????

If not, how much will it be remaining?

Thanks in advance...