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Take note of the 50% cash proceeds for next buy for HDB loan. www.catherinepang.com Read More

Evening Lynn,

If your cash profit is $300k, in taking HDB loan, your loan amount will be equal to valuation - available CPF (inclusive of CPF refund) - 50% of cash profit. The good thing is that your loan quantum will definitely be lower and the interest rate is pegged to CPF interest rate. If you do happen to lose your job, you can choose to negotiate with HDB on the loan repayment issue. Down side is obvious, you will need to put 50% of cash profit + COV aside, which you might have better usage on.

For bank loan based on 80%, you are only required to put in 5% cash (excludinh COV)' if you have enough CPF to cover the remaining 15%. The good thing about bank loan is that you can have more cash for whatever you have in mind. The down side is the strict repayment requirement, higher interest rate after lock-in period and possibility of losing the unit upon default of payment.

It's good to work things out, know where you stand before committing.

Do feel free to contact me if you require further assistance.

Regards
Mike Lim
 96929209 
ERA Read More

Hi Lynn,

The 5% cash for bank loan is based on valuation.

If you want to keep more cash and take advantage of the current low bank interest rates, my advise is to choose bank loan. Do not worry about the loan repayment part, you can choose a 2 year lock-in package, thus allowing you to do refinancing after 2 years.

I can recommend some good bankers to you whom i closely work with.

If you need further discussion, pls call me at 98628691  .

Thanks,
Ander ERA Read More