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Thread: which loan is better

  1. 15th February 2009, 03:57 PM #1
    cookies
    cookies is offline Maître d’hôtel
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    Default which loan is better

    is it better to go for HDB or bank loan?

    i understand that HDB outfront cash can be lower and the monthly installment is higher.

    but the question is that bank interest flatuate. i worry that long run the interest will go up.

    any advise?
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  2. 18th February 2009, 05:04 PM #2
    HalcyonVI
    HalcyonVI is offline Super Moderator
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    There are generally three reasons to take up a bank loan over a HDB loan:-

    1) You believe that the bank interest rate is going to stay lower than the HDB loan rate during the period of time you own the HDB
    2) You do not want your spare CPF funds to be paid towards the HDB and do not want to invest the funds at this juncture
    3) You want a longer loan tenure to reduce your monthly instalment. Banks can offer loan tenure up to a maximum of 35 years whereas HDB can go up to 30.
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