AskGuru Q&A Community

Evening,

Bascially, both are mortgage loan that is provided for the purpose of buying of HDB unit.
HDB loan's interest rate is pegged to CPF interest rate, hence it's more stable, currently going at 2.6%.
Bank interest rate varies, depending on market, other than during the lock-in period. Hence the monthly installment amount can be quite unpredictable.
Hence it is always prudent to work withn your financial ability, during the purchase of property.

FYI
Mike Lim
 96929209 
ERA Read More

Hi Ding Tong,

Basic difference between the 2 will be the interest rates and lock in period. Are you Singapore citizen? Otherwise you may only be eligible for bank loan. As Mike have pointed out about the main feature differences, you'll also need to know that the interest rate for the first few years maybe lower than the HDB loan but it'll be prudent to find out more about the different packages 1st before commitment.

Regards,
Geryl LIM
Real Estate Consultant
CEA Reg R014783H
Mobile: +65-81577566 
Email: lim.geryl@yahoo.com.sg Read More

The S&P process needs careful and confident planning in financial, timeline and checklist especially HDB, CPF, bank and lawyer etc. Recently my client 'suddenly' bought a dream condo while 'holding on' to a HDB flat. They needed the extra 'funds' for the condo. Hence, after a series of planning, discussion and deliberation, they finally decided to sell their HDB unit. Engage an agent if you expect a consistent S&P process. The stress relief effort is enormous and the commission is insignificant. Check this site: www.catherinepang.com Read More

Hi Ding Tong,

Apart from interest rate, there is a more important thing that you need to think about is the cash proceed.

If you are taking HDB loan, 50% of cash proceeds will go into the new flat, and if you are taking bank loan, you will need to pay 5% to 10% cash from your cash proceed.

Hope that I had answered your question.

Feel free to contact me if you need my assistance.

Thanks and Regards
Johnny Goh
R018297H
Dennis Wee Realty Pte Ltd
Group Director
Mobile: 90906267 
Email: johnnygohmh@dwg.com.sg
Website: johnnygohproperty.com Read More