HDB Bank Loan Advise Needed

[Chuapcd]

Hi need some advises from the bros here.

 

I have a HDB loan with UOB bank with a outstanding amount of $150K (paid 4.5 yrs with balance of 5.5 yrs @float interest at 3.75%). I have a balance of $100K in my CPF account and i am thinking to make full payment from my CPF of 100K + cash of 50K, could someone advise me if this make sense? Can i use all the 100K in my CPF ord account for the full payment? Also i was told by UOB to get my own lawyer to settle the full payment, anyone has experience how i could go about and how much will the cost be? Does the lawyer assist in advising me how much in total i need to prepare for full settlement before i engage him/her?

 

Thank you

[Jasonjst]

Hi need some advises from the bros here.

 

I have a HDB loan with UOB bank with a outstanding amount of $150K (paid 4.5 yrs with balance of 5.5 yrs @float interest at 3.75%). I have a balance of $100K in my CPF account and i am thinking to make full payment from my CPF of 100K + cash of 50K, could someone advise me if this make sense? Can i use all the 100K in my CPF ord account for the full payment? Also i was told by UOB to get my own lawyer to settle the full payment, anyone has experience how i could go about and how much will the cost be? Does the lawyer assist in advising me how much in total i need to prepare for full settlement before i engage him/her?

 

Thank you

 

I thought pte bank give lower interest ? @3.75% is higher than HDB @ 2.65 right .

[Yewheng]

Ya heard from those agents that now bank interest rate are at 1.2% but atflockrate.

So my guess is after 1 to 2 yrs, the rate went up n up to 3-4%?

Can some expert explain to us Pls.

 

Rates cannot stay low forever, just an advise that when taking loan also need to calculate in rising interest rate.

[Damienic]

I thought pte bank give lower interest ? @3.75% is higher than HDB @ 2.65 right .

 

He probably got the loan approved back in 2007 when the pte bank rates is still about 3.25-3.50%. The thing abt these banks is that when the interest rates goes down, they dun re-adjust downwards for those who got the loan earlier. U will have to make a lot of noise before they would consider re-adjusting it back to existing market rates..

[Jeronlee]

Hi need some advises from the bros here.

 

I have a HDB loan with UOB bank with a outstanding amount of $150K (paid 4.5 yrs with balance of 5.5 yrs @float interest at 3.75%). I have a balance of $100K in my CPF account and i am thinking to make full payment from my CPF of 100K + cash of 50K, could someone advise me if this make sense? Can i use all the 100K in my CPF ord account for the full payment? Also i was told by UOB to get my own lawyer to settle the full payment, anyone has experience how i could go about and how much will the cost be? Does the lawyer assist in advising me how much in total i need to prepare for full settlement before i engage him/her?

 

Thank you

at the interest rate you're paying (3.75%), it definitely make sense as your CPF OA interest is much lower at 2.5%. alternatively, you could explore refinancing. bottomline, your idle cash/CPF must generate higher return than your mortgage interest rate.

 

typical lawyer conveyancing fee for HDB should not exceed $2K. you could randomly contact a few law firms from the below for comparison. yes, they should be able to advise you the total cost for full settlement before the official engagement.

HDB panel of lawyers

[Yewheng]

so is that mean taking HDB loan is still the best?

current rate is 2.6% thru out the whole loan period.

 

I feel take hdb loan will not go wrong as no need to worry about rising interest rate. Now although bank loan interest rate is low but future hard to say.. Maybe up to 5% or more also possible.. Future hard to predict so go for safer option is better which is hdb loan.

[Yewheng]

Thanks bro..

 

That's my feel la. Many people will think hey.. Interest rate will not go so high 1 la.. But look at history.. Interest rate has been low for quite sometime. Once shoot up will be quite high 1.. Yr 2007 crisis interest rate at 3%+- .. Imagine what will happen when next bigger crisis hit? Hmm..

Edited August 5, 2012 by Yewheng

[Poper]

I will never use cash to pay off HDB loan. Don't believe in having a fat CPF account that I can't touch..

[Jrage]

Rates cannot stay low forever, just an advise that when taking loan also need to calculate in rising interest rate.

 

Actually, rates will stay low for at least 5 yrs.. Fed will keep the rate low till 2014. Even if the rate really raising, it will not be alot higher because off the huge sovereignty debts.

 

Since most if not all bank loan need to be refinance after 3/4/5 yrs. Might as well take the low sor/sibor rates one. When the interest rate raise in , say 5 yrs time, even fixed will be high also.

 

 

If you are having pte , with the current poor investment environment. Seriously , it does not really matter if you pay finish or not because $$ in the bank also dun give alot of interest..Stock related investment are too violate and not for the weak-hearted :| Commodity also tanked liao. FD and double currenty have its risk and low return.. So also no point.

 

But for hdb , it's different because hdb is a close mortgage. That is to say, you cannot gear-up if you need the extra $ . while pte, you can.

Edited August 5, 2012 by Jrage

[Yewheng]

Actually, rates will stay low for at least 5 yrs.. Fed will keep the rate low till 2014. Even if the rate really raising, it will not be alot higher because off the huge sovereignty debts.

 

Since most if not all bank loan need to be refinance after 3/4/5 yrs. Might as well take the low sor/sibor rates one. When the interest rate raise in , say 5 yrs time, even fixed will be high also.

 

 

If you are having pte , with the current poor investment environment. Seriously , it does not really matter if you pay finish or not because $$ in the bank also dun give alot of interest..Stock related investment are too violate and not for the weak-hearted :| Commodity also tanked liao. FD and double currenty have its risk and low return.. So also no point.

 

But for hdb , it's different because hdb is a close mortgage. That is to say, you cannot gear-up if you need the extra $ . while pte, you can.

 

Oh.. thanks... [laugh]

[Jtay]

I will never use cash to pay off HDB loan. Don't believe in having a fat CPF account that I can't touch..

 

Totally agree.

 

And i do believe in using cpf to pay off as much of the loan as possible. Feels good to be debt free :)

[Djdp]

Totally agree.

 

And i do believe in using cpf to pay off as much of the loan as possible. Feels good to be debt free :)

 

Come on, the cash does not go to CPF after u sell ur house.

Only those CPF monies used with interest will go back to CPF.

 

[Djdp]

Hi need some advises from the bros here.

 

I have a HDB loan with UOB bank with a outstanding amount of $150K (paid 4.5 yrs with balance of 5.5 yrs @float interest at 3.75%). I have a balance of $100K in my CPF account and i am thinking to make full payment from my CPF of 100K + cash of 50K, could someone advise me if this make sense? Can i use all the 100K in my CPF ord account for the full payment? Also i was told by UOB to get my own lawyer to settle the full payment, anyone has experience how i could go about and how much will the cost be? Does the lawyer assist in advising me how much in total i need to prepare for full settlement before i engage him/her?

 

Thank you

 

 

The total CPF you use shd not be higher then the purchase price of the house in this kind of situation

For eg. If u bought the house for 200k , paid 100 k, full settle now is 120k (because of interest)

U can only use another 100k from CPF now as the purchase price is 200k - 100k paid= 100 k.

The other 20k need to be cash

I suggest the bet is to get a agent to help/ advise u.

I paid around $500 for lawyer to do that

[Jtay]

Come on, the cash does not go to CPF after u sell ur house.

Only those CPF monies used with interest will go back to CPF.

 

Well, i see little value in having cpf money. You can see the money but cannot touch. Might as well use ut to pay off housing loan.

[Logen]

Well, i see little value in having cpf money. You can see the money but cannot touch. Might as well use ut to pay off housing loan.

 

well... if for me i would do that too :) if i got 100k cpf :)

i still have outstanding with hdb of $90k only

 

[Chucky2007]

Full settlement of HDB loan dun need to engage lawyer.. my advice just saved u at least $1.2k..

[Chucky2007]

Before u decide whether u wanna fully repay the uob loan, why dun u reprice with uob at maybe 1.5% rate with no lock in package? Instantly save $ on higher interest of 3.75%..

 

Negotiate them with the repricing admin fee of $300-500 see if they can waive. But if I'm in yr situation, I'll not take lock in package for a slightly lower rate of 1.2-1.3% at all.. as outstanding loan at $150k is small so interst diff between 1.2% and 1.5% is really negligible.

 

If u r savvy investor, next few months may post good opportunity ro go in market to get some good capital gains if market tank..

[Chucky2007]

Hi need some advises from the bros here.

 

I have a HDB loan with UOB bank with a outstanding amount of $150K (paid 4.5 yrs with balance of 5.5 yrs @float interest at 3.75%). I have a balance of $100K in my CPF account and i am thinking to make full payment from my CPF of 100K + cash of 50K, could someone advise me if this make sense? Can i use all the 100K in my CPF ord account for the full payment? Also i was told by UOB to get my own lawyer to settle the full payment, anyone has experience how i could go about and how much will the cost be? Does the lawyer assist in advising me how much in total i need to prepare for full settlement before i engage him/her?

 

Thank you

Lastly.. why dun need to engage lawyer for hdb case is bec hdb does not involve strata title or title deeds, as hdb is rented flat.. u can get these information from hdb website or visithdb is u willing to do some leg work.