huiamos 6 Report post Posted September 13, 2015 Hi Everyone,I'm about to turn 35 yr old and am very excited to get my own place! Right now can't decide which loan is better for a 25 year commitment.HDB loan stays at 2.6%Bank loan's interest rates will be lower than or capped at 2.5% for the first 5 years, save some money on the interest in the beginning but uncertain what's gonna happen after that.Dilemma now Share this post Link to post Share on other sites
Ahyong81 3 Report post Posted September 13, 2015 Hdb loan dont stay at 2.6% its depends on the cpf oa interest rate plus 0.1%. If cpf board adjust the oa interest to higher returns, hdb loan interest will also adjust. Share this post Link to post Share on other sites
SimpleGuy88 0 Report post Posted September 18, 2015 Hi i have come across your question before in my mind. According to the experienced people out there, bank loan interest rate might be attractive in the beginning but after 5 years the table might just turn by charging your higher interest compared to HDB. Well my verdict in this is HDB loan will allow you to have a peace of mind as the interest rate does change drastically over the years and best of all if you are ever paying cash to repay your loan back to HDB, you won't be charged with a heavy late payment penalty. While you still have the option to apply for HDB loan just go for it.Cheers! Share this post Link to post Share on other sites
diamondsmum 0 Report post Posted September 18, 2015 When I got my HDB i opt for HDB loan, its safer. Bank loan if you are not able to pay for any reason they will force sell your HDB.If you have a chance to get HDB loan go for it, each applican.t can only apply twice so make use of it. Share this post Link to post Share on other sites
bepgof 20 Report post Posted September 29, 2015 Mortgage loan selection choice is very challenging. It involves:- Your understanding of the financial markets trends. Past present and future.- Your comfortability with the volatility of interest rates.- Your understanding of value of future money and its calculation.- How much involves.The superpowers have been printing $ (EUR, £, JPY) USD stopped not long ago, while China 'devalues' its currency overnight. Currency war?Why some central banks adjust their interest rates up while some (USA) remains low.......all concern 'cost of capital' from borrowers' perspective , or 'market rate of returns' from lenders' perspective.We're now in a very 'volatile' energy/financial markets/technology change era. Dusts unlikely to be steady or rested within a year or 2.Many companies have started practiced 1month/1wk no-pay leave, some 'white envelops' have been flying around...My advise is, stick to banks' 3-5 yr fixed rates, if they offer <2.6% pa monthly compound, otherwise apply for HDB's HLE. Share this post Link to post Share on other sites
Lauer 15 Report post Posted September 29, 2015 I have seen this forced-sell rationale given so many times in this forum, so it is true that people opted for HDB loan instead of a bank's eventhough the bank's is lower?Cheers! Share this post Link to post Share on other sites
bepgof 20 Report post Posted October 3, 2015 It's rather a financial & legal knowledge/planning issue that ppls raising this question again and again.And I believed, particularly the first time home buyer (from primary or secondary markets) opt for HDB loan. Share this post Link to post Share on other sites
