HDB Bank Loan Advise Needed

[Djdp]

U need a lawyer to settle the loan

Be it full settle or when u sell ur house

 

[Poper]

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

i still have outstanding with hdb of $90k only

 

I "warn" my wife not to transfer her OA money to SA as it gives 4% per annum interest... She has been "obedient" so far...

[Haziqko]

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

 

 

Go the the bank to refinance since your rate now is 3.75% means u have been a loyal customer, they will gladly do it. If not tell them u go to other banks which offer around 1.5% now. All housing loan need lawyer to settle and it will also come with a fee. Usually 1k-2kplus for HDB. And if you got the means to pump in your CPF to the loan why not since you can't do much with it locked up, but I suggest set aside a small balance.

[Logen]

I "warn" my wife not to transfer her OA money to SA as it gives 4% per annum interest... She has been "obedient" so far...

 

 

pls do not do that move!

just leave it as it is....

u will always need an extra oa anytime for changing property

[Dumb]

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

 

If I were you, dont bother to engage a lawyer. If you pay in full, just ask for the title deeds, though there could still be a caveat on your property. Then write to the lender to remove the caveat since he has been paid in full.

 

[Nerdyfrog]

Go log in HDB website, look under my flat details.

 

See how much you owe.

 

 

______________________________

 

Then go log in your CPF under "request".

 

Make lump sum payment to

 

1. Private housing

 

2. HDB flat

 

Select your option.

 

Select amount and click.

 

---------------------------------

 

If i did not forget....it should be this.

 

My fees cost a packet of chicken rice, only accept roast chicken breast and backside.

 

Ya, coffee too.

[JimmyMcG1978]

Planning to apply for 4 rm hdb in the east but can't make up our minds if should go with hdb loan or bank loan offered by OCBC or DBS. The interest rates offered by the banks now quite low..

[Macrotrust]

go for HDB loan, tat is my advice unlike bank loan if u fail to pay your mortgage promptly, high chance for foreclosure... unlike HDB can nego for longer period as they are public sector as housing is a public goods.

[Unltd]

Planning to apply for 4 rm hdb in the east but can't make up our minds if should go with hdb loan or bank loan offered by OCBC or DBS. The interest rates offered by the banks now quite low..

 

HDB loan, it is hedged against your CPF.

[Friedpiggy]

HDB loan, it is hedged against your CPF.

 

what does hedge against cpf this mean?

 

recently i was advised by a bank rm to take as much pte loan as possible and if the interest rate change to higher then cpf rates then only use bulk of cpf to clear outstanding loan.

 

Questions on this:

how to set aside cpf? thought automatically the cpf will wipe out?

cpf allows OA to use to clear bank loan anytime?

 

 

 

[YellowFlash]

what does hedge against cpf this mean?

 

recently i was advised by a bank rm to take as much pte loan as possible and if the interest rate change to higher then cpf rates then only use bulk of cpf to clear outstanding loan.

 

Questions on this:

how to set aside cpf? thought automatically the cpf will wipe out?

cpf allows OA to use to clear bank loan anytime?

 

 

taking a bank loan will not wipe out your cpf as the amount of loan and cpf to used is determined by yourself. only take hdb loan will wipe out the cpf. At this current moment, it does make sense to take bank loan as rates are approximately 1.2-1.3% on the average for next 2-3 years. CPF pays you 2.5%. 2.5%-1.3%= 1.2% difference. if you have a 100k in your balance. you would have made additional $1.2k after paying off the bank interest.

[YellowFlash]

HDB loan, it is hedged against your CPF.

 

dont think the word used should be hedge, hdb loan rates is pegged against CPF interest rates. their rate is +0.1% above what CPF OA is paying you.

[YellowFlash]

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.

 

there is a strata even for hdb. the thing is for hdb loan, you can request for your strata from them without a fee after you have cleared your loan. however for bank loans, you will need to engage the bank's panel of law firms to discharge the mortgage. normally cost 400-500.

[Friedpiggy]

taking a bank loan will not wipe out your cpf as the amount of loan and cpf to used is determined by yourself. only take hdb loan will wipe out the cpf. At this current moment, it does make sense to take bank loan as rates are approximately 1.2-1.3% on the average for next 2-3 years. CPF pays you 2.5%. 2.5%-1.3%= 1.2% difference. if you have a 100k in your balance. you would have made additional $1.2k after paying off the bank interest.

 

So assuming leftover amount is 300k but i have 300k in CPF. I can leave CPF untouched and take bank loan of 300k to make use of the low interest rate now. but when the rate were to increase significantly higher then 2.5% can I immediately make a full payment using CPF? Would there be any big admin charges?

 

I was actually planning to do the above but would like to know if there would be any misc charges.

[Unltd]

what does hedge against cpf this mean?

 

recently i was advised by a bank rm to take as much pte loan as possible and if the interest rate change to higher then cpf rates then only use bulk of cpf to clear outstanding loan.

 

Questions on this:

how to set aside cpf? thought automatically the cpf will wipe out?

cpf allows OA to use to clear bank loan anytime?

 

As YellowFlash pointed out, I used wrong choice of words. It should be pegged instead of hedged.

[JimmyMcG1978]

Same here, I would avoid using cash to pay off the loan. Use cpf as much as possible, having a fat cpf account no use. I don't know about hdb but I know some banks out there charges a penalty for early full repayment. Does anyone know which banks and if posb home loan? has that clause too?

[Mothorrr12]

I agree that if can take HDB loan cuz can use CPF account. No point having 'virtual money' that you can never see. But sometimes hdb doesn't approve your full loan. My fren only got 60% of his principal loan sum approved. Then in the end he had to take his hdb loan from dbs in order to get the 80% financing. So depends on case to case really.