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Thread: Loan from HDB or Bank?

  1. #1
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    now HDB interest is higher then bank but people are still going to HDB loan because of the flat rate. what's your opinion on this?

  2. #2
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    I think most people are still going for HDB as many plan to keep their HDB for the long haul (> 10 years). HDB loan rates is very stable compared to the banks'. However, many are also not aware that the banks' housing loan interest rate is much lower than HDB's at this point in time. As a rule of thumb, if the borrower is looking to sell his or her HDB within 5 - 6 years, taking up a loan from a bank is a more prudent choice. Recommendation only valid at this point in time ya

  3. #3
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    but usually HDB is the basic accomodation for most of us, unlike private property where you can invest, HDB is more like a roof over head kind of thing. many would not know if one would want to sell 5 years down the roads. and with the goverment keep changing the regulations on housing and property, it's really difficult to predict what will happen 5 years down the road.

    the other considering factor i think is because of the 5% cash that you need to take out if you opt for bank loan. with COV so high these days, another 5% of cash can be quite substantial.

  4. #4
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    exactly. now COV is really sky high. market is asking for $40 and above. this is extorbitan. is not easy to have a roof over your head in sg.

  5. #5
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    yar yar yar, correct correct

  6. #6
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    Quote Originally Posted by hazel View Post
    but usually HDB is the basic accomodation for most of us, unlike private property where you can invest, HDB is more like a roof over head kind of thing. many would not know if one would want to sell 5 years down the roads. and with the goverment keep changing the regulations on housing and property, it's really difficult to predict what will happen 5 years down the road.

    the other considering factor i think is because of the 5% cash that you need to take out if you opt for bank loan. with COV so high these days, another 5% of cash can be quite substantial.
    If you don't know whether you are selling 5 years down the road, you shouldn't take up a bank loan. Same with people who do not have the 5% cash - there's no need to consider because there's no choice except for a HDB loan. For people facing difficulties with the downpayment, it's good to know that a HDB loan can go up to a loan-to value of 90%, unlike banks' 80%. HDB loan borrowers should also be aware that 100% of your CPF Ordinary Account will be used towards the HDB purchase. If you do not want to use all the money in your OA to pay for your HDB, either buy some CPF approved unit trust/stock etc before your property purchase or go for a bank loan.

  7. #7
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    yar exactly. it's not easy to own a property here. HDB allows you to loan up to 30 years. i have to slog until 65 years before i can have my own property.

  8. #8
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    on the other hand, we should be blessed that we are singaporean. there are many things here that are better then other nations. just remember there is not perfect world.

  9. #9

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    Quote Originally Posted by hazel View Post
    but usually HDB is the basic accomodation for most of us, unlike private property where you can invest, HDB is more like a roof over head kind of thing. many would not know if one would want to sell 5 years down the roads. and with the goverment keep changing the regulations on housing and property, it's really difficult to predict what will happen 5 years down the road.

    the other considering factor i think is because of the 5% cash that you need to take out if you opt for bank loan. with COV so high these days, another 5% of cash can be quite substantial.
    you have great knowledge dear, nice post.....

  10. #10
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    Bumped into this related article http://www.myhousingloan.com.sg/hous...-home-loan.php on Hdb vs bank loans. It's quite insightful.

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