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I have a 3 room hdb loan of 100k, would like to buy a freehold studio of about 500k, should i clear of my hdb loan and take 80% loan of the condo? or keep my hdb loan running and take 50% loan? which is more feasible? i was told by the bank that even if i clear off my hdb loan, it doesnt make much of a difference as it doesn't increase my value of having a fully paid asset. instead it just looks slightly better than i have no outstanding loan. kindly advice
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2 Answers

YT Tan (陈永达)
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Hi, Lets just compare these two scenarios without the fact that you might have CPF for second property purchase: If you fully pay your HDB loan and able to take up 80% loan for second property, your cash outlay could be around $200k ($100k repayment + $100k downpayment). While you decide to go ahead without paying off your HDB loan, you are only able to take up 50% loan which means that you need to fork out $250k downpayment. That will be a difference of $50k not inclusive of buyer's stamp duty, additional buyer's stamp duty for second party, legal fees etc. Even though, it means lesser cash outlay, it will also means you took a larger loan. Depends on your finances, you choose the option that best suits you. If you need any assistance in property purchase/ financial planning, I hope my accounting knowledge will be of great help to you. Cheers! Warmest Regards, YT TAN 陈永达 | ACCA Graduate, RES Senior District Manager R043025D ECG Property Pte Ltd (A Wholly Owned Subsidiary of ECG Group of Companies) Estate Agent no. L3009759F Blk 190 Lorong 6 Toa Payoh #05-508 S (310190) (M): +65 9111 5171  (E): yt.lovelyhomes@gmail.com (W): www.yttan.com (W): yttan.stproperty.com.sg/ (W) www.lovelyhomes.com.sg (W) www.ecgproperty.com Read More
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Koh Zhen Hon
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Hi,

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