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Hi! I'm a Harvard graduated real estate agent who holds a degree in economics, and would love to schedule a free consultation to discuss your options around asset management and progression.

Based on your scenario, there are pros and cons on keeping your money in the savings bonds vs using it to pay down your loan vs purchasing a condo. You have to consider your risk appetite, investment outlook, your current property and the potential condo you are thinking of purchasing.

If you are simply paying down your loan on a home asset that may not be optimal for your portfolio, you might end up locking up your free cash available for better investments or portfolio adjustments. In the current global economic climate, there are many opportunities to take quick and smart moves using taking a data-driven approach in the midst of economic uncertainty. This is something I can help you navigate.

On your second question, the remaining leasehold does affect the financing options for buyers on their property purchases. Specifically, it would be influenced by whether the remaining lease of property at the point of purchase is at least 20 years and can cover youngest buyer until at least the age of 95.

Would love to chat further to support your journey. Feel free to reach out via whatsapp or email and we can schedule a free consultation.

Kay Cloud
Associate Advisor
Propnex Realty Pte Ltd
cloud@propnex.com
 (+65) 85674585  Read More

You're essentially borrowing money at 2.3% to invest it at 3%, which gives you a net positive spread of 0.7%. This is a good move in theory, especially since:

Your SSB is low-risk and liquid (you can redeem it with a 1-month notice).

Your mortgage interest is typically simple interest based on reducing balance, not compound interest.

So, as long as:

The home loan interest remains at or below 2.3%, and

The SSB yield remains at 3%, and

You are comfortable with the risks (e.g., interest rates may rise),

Then yes — it makes sense to keep your $200K in SSB and service your mortgage as planned.

Property loans are different from motor car loan.

Mortgage loans in Singapore use reducing balance interest, meaning interest is calculated only on the remaining principal.

The quoted interest rate is close to the EIR, and the EIR is also clearly shown in your loan documents.

For example: a 2.3% home loan might have an EIR of ~2.35–2.4%, due to small admin charges and compounding.

And yes, remaining lease balance may affect the home loan a buyer can take depending on several conditions like age of borrower and balance lease of the condo. Read More

Good day to you,

If your housing loan is a fixed-rate loan for a duration of 2 to 3 years, you can expect an annual gain of approximately 0.7%. Will that remain after the lock-in period?

Housing loans are typically long-term, with interest calculated based on the reducing balance. A smaller loan amount will result in lower interest payments.

You are correct that leasehold properties often depreciate in value, as buyers may not be able to fully utilize CPF funds when the remaining lease is under 60 years. Therefore, it's essential for investors to understand their own intentions before making a decision.

Returning to the original point, if you want to minimize risk, it’s advisable to leave the savings bonds untouched and allow them to accumulate interest.

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Regards
Mike Lim
 96929209 
R026708F
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ERA Read More

Dear Sir/ Madam,

I would be most glad to assist you further and pls feel free to let me know if you need any assistance.

Wishing you a fantastic day ahead.

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Whether you’re buying, selling, or investing, my expertise ensures a seamless and successful property journey.

Let me put my experience and resources to work for you. Reach out now to discuss your real estate goals:

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Onassis Gan
Principal Realtor of SGAgent.com | SGRealtor.com | SGGuru.com |
Your Partner in Real Estate Success! Read More

Hi

If your loan is fixed at 2.3% but you are able to yield 3% from other financial instruments, it makes sense to park your cash in there and reap the positive difference. Practically speaking the positive spread usually is not a lot unless the loan amount is a high quantum, and people keep the funds "free" more for cash flow purposes.

Yes balance lease may affect your borrowing amount depending on your age. If the condo is too old the loan borrowing may not be full 75%

Hope the above clarifies. I am well-versed with HDB and private property transactions, having helped more than 100 homeowners transit smoothly with their housing plans. Please reach out to me at 97432395  for a more in-depth discussion :)

May I have more info on your requirements so as to make better recommendations? Thanks and looking forward to chat more

Warm Regards,

Ivan Ng Realtor
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Hi,

I would be most glad to assist you further and pls feel free to let me know if you need any assistance. Have a good day ahead. By the way, have you consulted any mortgage broker yet?

Regards
Aaron Chong
 9730 8455 
aaronchong2774@yahoo.com.sg Read More

If your housing loan stays below your investment yield, you can continue investing the 200k in SSBs for higher net returns, keeping in mind interest rate volatility.
Remaining lease definitely affects both loan eligibility and CPF usage, so always check the lease tenure before proceeding.
“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett

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Mark, your RIGHT choice
Propnex Read More

Hi, appreciate your sharing. Propose to do a bank loan check with local banker to determine your maximum loan first before planning next move. It also depends what is your plan for next 5-10 years.
Looking forward to assist you at 9696 4398  or email me at stewartlim96964398@gmail.com

Cheers
Stewart-PropNex (Senior Associate Division Director) Read More

I would be glad to assist you.
Feel free to contact me at wa.me/6597100155
Hope to hear from you soon.
Pei Mobile: (65) 9 7 1 0 0 1 5 5.
Email: peicheng.tan@propnex.com
Associate Group Director
Propnex Realty Pte Ltd Read More

Hi! Great questions.
1. On your $200k in Singapore Savings Bonds (SSB) vs. your housing loan at 2.3% — in simple terms, if the net return on your investment is higher than your loan interest, it often makes sense to keep investing. SSBs offer stable returns and liquidity, while your housing loan interest is usually tax-deductible only for investment properties, not owner-occupied homes.

Effective interest rates for home loans can be slightly higher than the headline rate, depending on loan structure, fees, and any loan insurance. It’s good to factor those in when comparing costs. Car loans tend to have higher effective rates because of different fees and shorter tenures.
2. As for leasehold, lenders generally consider the remaining lease when approving loans. If the lease is too short, banks may reduce the loan quantum or reject the application, especially if the lease won’t cover the loan tenure plus some buffer.

For a deeper dive tailored to your exact case, feel free to reach out anytime.
– Aren Goh | +65 9657 6701  (PropNex) Read More