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HDB Resale Mortgage: Hi guys I currently bought a 4ARM for 420k , 75years lease left. HDB Loan with interest $300k. 25yr monthly using CPF OA ~$1.2k. Not planning to sell or move house at all. Intending to do partial capital repayment yearly around 6k to 10k. So that I can minus my interest to as low as possible. Currently I'm 30yrs old. Both me and my husband is working earning decent income ~$4k each. Intend to pay off house before 40 years old. Anyone has advice and can show me some calculations what would happen if I were to "dump" my CPF OA to pay off our house ASAP? Our thinking is since CPF cant be used to pay anything else besides house/education, might as well we use it to clear our liabilities early. Once the house is paid off we can just build our CPF, moving most of our OA to our SA since we do not really need our OA anymore for any further purchase (worse case scenario is we downgrade to smaller house) Can anyone please advice? Or anybody has done it before? Any refinance option would be great too. Would appreciate if you could lay down your calculations and plan for me.
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2 Answers

Robbie Chen Chee Howe
Replied
Hi Ms,

Are you aware that for the monies in your CPF-OA, Government is paying you 2.5% interest (plus extra 1% for the first $20k) per year? While a HDB loan is at 2.6% per annum? The difference is only than 0.1% (if you do not take into consideration the extra 1% for the first $20k).

Hence, I do not think it is a wise decision to pay down your HDB loan, as the disadvantages outweigh the advantage. I believe the mindset of being so-called "debt-free" is your only "advantage"?

There are many various methods which you can make your monies work harder for you, which we can discuss further.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
1
Upvote Upvoted
Robbie Chen Chee Howe
Replied
Hi Ms,

Are you aware that for the monies in your CPF-OA, Government is paying you 2.5% interest (plus extra 1% for the first $20k) per year? While a HDB loan is at 2.6% per annum? The difference is only 0.1% (if you do not take into consideration the extra 1% for the first $20k).

Hence, I do not think it is a wise decision to pay down your HDB loan, as the disadvantages outweigh the advantage. I believe the mindset of being so-called "debt-free" is your only "advantage"?

There are many various methods which you can make your monies work harder for you, which we can discuss further.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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