The loans thread!

[Altivo]

Can be either cash or cpf. For cpf usage, check with cpf or lawyer on cpf rules on minimum sum.

 

Thanks! My OA have enough for that. Hahaha.

 

refinance normally now need pay legal fees, the bank will absorb but u will have another lockin period

 

Oh is it? Cos I understand MAS set up a directive that banks are not to absorb legal fees anymore?

[CH_CO]

No offense to the sales guys here from the banks but i do find at times , banks sells unnecessary loans to people which don't really need it. Of course i won't pin point problems but i can cite an example via some stories i read when i was young.

 

 

Once upon a time , there was a fisherman whose hobby is to fish and he is so good that he does it for a living , being self dependent, he is happy contented with life. One day , one bank sales person comes along and tries to convince this fisherman to take up a loan to buy a bigger fish boat so that he can earn enough to retire and do what he likes. Buying that idea, he takes up a loan and works his ass off trying to repay the "loan" he took not to mention the interest. After 10 years of hard work he finally earns enough and retires only to find out that he doesn't need such a big boat and goes back to what he likes to do. Fish in the little ship.

 

Sometimes in life , kiang jiu hoh mai keh kiang. Change here change there waste time only looking up and changing. Those time can be better used to earn more money or spent with your family.

Edited March 7, 2013 by CH_CO

[Galantspeedz]

for those that take in house financing, pls be cautious especially in this climate

 

for illustration purpose:

 

bank lend dealer @ 2%, dealer lend you @ 4%... they earn the difference

 

when you pay installment to dealer, dealer pay to bank and earn the difference

 

BUT if you pay to dealer and dealer don't pay to bank and close down... you die liao

 

because your car is still consider asset of dealer and bank will try to claim all asset to fulfill the dealer debt obligations

 

therefore try to avoid taking in house finance from non reputable compaines

[Galantspeedz]

No offense to the sales guys here from the banks but i do find at times , banks sells unnecessary loans to people which don't really need it. Of course i won't pin point problems but i can cite an example via some stories i read when i was young.

 

 

Once upon a time , there was a fisherman whose hobby is to fish and he is so good that he does it for a living , being self dependent, he is happy contented with life. One day , one bank sales person comes along and tries to convince this fisherman to take up a loan to buy a bigger fish boat so that he can earn enough to retire and do what he likes. Buying that idea, he takes up a loan and works his ass off trying to repay the "loan" he took not to mention the interest. After 10 years of hard work he finally earns enough and retires only to find out that he doesn't need such a big boat and goes back to what he likes to do. Fish in the little ship.

 

Sometimes in life , kiang jiu hoh mai keh kiang. Change here change there waste time only looking up and changing. Those time can be better used to earn more money or spent with your family.

 

rent the big boat out when he retire

[CH_CO]

rent the big boat out when he retire

 

So rent out then he do what? Do the things he like right? End of day , does he really need the loan?

Edited March 7, 2013 by CH_CO

[Galantspeedz]

So rent out then he do what?

 

if payment is fish... then that is his food....

 

he can do gardening as retirement, increase his food source..

[Cars08]

bank minimum loan is 5 years. if you left only 3.5 year loan left, your option is to lenghten the loan tenureto 5 years.

I tot they hv a min amt of say 100K at least... not too sure if this info is outdated...but when I sign up my loan w the bank a few yrs ago i was told min 100K if less than they dun lend to u...

[CH_CO]

if payment is fish... then that is his food....

 

he can do gardening as retirement, increase his food source..

 

Issue here is this is a fisherman , not a gardener , why impose things on others ? That's the problem.

Edited March 7, 2013 by CH_CO

[Galantspeedz]

I tot they hv a min amt of say 100K at least... not too sure if this info is outdated...but when I sign up my loan w the bank a few yrs ago i was told min 100K if less than they dun lend to u...

 

few years ago.. they told me is min loan must be 200k for property

[Duckduck]

question is....

 

price will drop, why still plunge in and die die must buy??

 

because all they care is as little deposit as possible. Same as property mickey mouse apts, they dont care if overpriced or not, as long deposit is small can liao.

 

when a big global recession, occurs then we will see the true colours of all these ignorant purchases.

[Galantspeedz]

Issue here is this is a fisherman , not a gardener , why impose things on others ? That's the problem.

 

erm... not imposing.... he retire liao... he no longer needs to fish for a living no meh?

 

gardening is just a general answer, he can always do what he wants... which may even be back to fishing

 

however that does not render his boat useless, he can even rent it out half a day and pursue his hobby of fishing the other half day.. just like taxis now...

 

retire liao.. alot flexibility mah... and no one is imposing anything... he may be a fisherman by trade but that does not mean he may like what he is doing

 

 

Edited March 7, 2013 by Galantspeedz

[CH_CO]

erm... not imposing.... he retire liao... he no longer needs to fish for a living no meh?

 

gardening is just a general answer, he can always do what he wants... which may even be back to fishing

 

however that does not render his boat useless, he can even rent it out half a day and pursue his hobby of fishing the other half day.. just like taxis now...

 

retire liao.. alot flexibility mah... and no one is imposing anything... he may be a fisherman by trade but that does not mean he may like what he is doing

 

Tats the problem with most sales person , no attention to details and try to beat around the bush. So sorry for the harsh words. No offense. Just citing examples. Dude , i already mention fishing is his hobby and he was so good that he is doing it for a living. Meaning he loves what he is doing and can do it almost everyday. By the way this is a real life example , he is one of my uncles. Though he is not a full time fisherman but he doesn't really need money , end up with a kelong which is a simple waste of time for him when what he likes is to fish.

 

Issue is when a person already has enough in life , why bother to "sell" him things that he doesn't need?

Edited March 7, 2013 by CH_CO

[Cars08]

Just a comment , i believe a HBD loan if one qualifies for it, is one of the best loan deals there is out there , reason being your effective loan is only 0.1% , though i would recommend people to early repay any loan but if one has enough CPF and don't know what to do with it , the best is to take a hdb loan. Banks no such thing as a deferred 3 year payment but hdb allows case by case.

 

Reason HBD loan 2.6% , special account 4% (variable) , even if you put in normal account it is 2.5% .Of course one would say whether if one can get their cpf money or not , to me if money is stuck inside it is stuck there, don't bother. Just bother about your property. It would appreciate in time and the balance can be taken out. On top of that , over time , you can probably "benefit" from it via rental and stuff.

 

Of course terms and conditions apply.

U got to look at how much money is left in your CPF versus the loan amt u r taking. If u hv 100K in CPF while ur loan requirement is 300K, even with the interest diff, u may not necessary hv an effective loan of 0.1%. Ur scenario is good when u hv 300K in CPF and u intend to loan 300K given that the financing costs is low...

 

if I hv 300K in my ordinary and my loan is 300K, I will settle in full... at least 1 loan off my mind... nevertheless, I do friends adopting your strategy in fact they use other source of means to reduce interest further...but I prefer to pay less or no interest if possible given that it is still an expense. Also, I cannot take out my CPF...why not use it up...it will be accumulated over the next few years again...

 

I do agree with you that if one qualifies for HDB loan take it... if ur loan period is gonna stretch more than 10 yrs and loan amt is big enuff..

[Cars08]

few years ago.. they told me is min loan must be 200k for property

no leh...i borrowed less than that amt n for a short period of time...

[Chucky2007]

No offense to the sales guys here from the banks but i do find at times , banks sells unnecessary loans to people which don't really need it. Of course i won't pin point problems but i can cite an example via some stories i read when i was young.

 

 

Once upon a time , there was a fisherman whose hobby is to fish and he is so good that he does it for a living , being self dependent, he is happy contented with life. One day , one bank sales person comes along and tries to convince this fisherman to take up a loan to buy a bigger fish boat so that he can earn enough to retire and do what he likes. Buying that idea, he takes up a loan and works his ass off trying to repay the "loan" he took not to mention the interest. After 10 years of hard work he finally earns enough and retires only to find out that he doesn't need such a big boat and goes back to what he likes to do. Fish in the little ship.

 

Sometimes in life , kiang jiu hoh mai keh kiang. Change here change there waste time only looking up and changing. Those time can be better used to earn more money or spent with your family.

There's a continuation to this story:

me , there was a fisherman whose hobby is to fish and he is so good that he does it for a living , being self dependent, he is happy contented with life. One day , one bank sales person comes along and tries to convince this fisherman to take up a loan to buy a bigger fish boat so that he can earn enough to retire and do what he likes. Buying that idea, he takes up a loan and works his ass off trying to repay the "loan" he took not to mention the interest. After 10 years of hard work he finally earns enough and retires only to find out that he doesn't need such a big boat and goes back to what he likes to do. Fish in the little ship.

 

Then one day came huge storm, and capsized the one little tiny fishing boat of this fisherman.. which now the fisherman desperately needs funding to buy another boat. The fisherman thought of the banker and contact him and said that its a great idea to have a bigger boar so that he can caught more fish with a bigger boat, and a bigger boat can withstand a bigger storm and less likely to capsize.. banker asked him to use his smaller boat as a secured collateral for the loan for the bigger boat. Fisherman says "it had capsized in yesterdays storm" banker replied "that's a shame, we can't give you the loan when its unsecured bec your income is not fixed".

 

Fisherman no choice, but to go back to the seas side and uses a fishing rod to fish, and start building up to save for a small boat.

 

Moral of the story.. if one prefers to remain small, better get insured. Else when opportunities strike, just be hardworking and start to grow big

[Toothiewabbit]

U got to look at how much money is left in your CPF versus the loan amt u r taking. If u hv 100K in CPF while ur loan requirement is 300K, even with the interest diff, u may not necessary hv an effective loan of 0.1%. Ur scenario is good when u hv 300K in CPF and u intend to loan 300K given that the financing costs is low...

 

if I hv 300K in my ordinary and my loan is 300K, I will settle in full... at least 1 loan off my mind... nevertheless, I do friends adopting your strategy in fact they use other source of means to reduce interest further...but I prefer to pay less or no interest if possible given that it is still an expense. Also, I cannot take out my CPF...why not use it up...it will be accumulated over the next few years again...

 

I do agree with you that if one qualifies for HDB loan take it... if ur loan period is gonna stretch more than 10 yrs and loan amt is big enuff..

My fren tried to refinance his HDB loan with the ordinary account but was told that he n wifey dun qualify due to minimum sum required in ordinary.

 

Anyone could clarify more regarding this?

 

[CH_CO]

U got to look at how much money is left in your CPF versus the loan amt u r taking. If u hv 100K in CPF while ur loan requirement is 300K, even with the interest diff, u may not necessary hv an effective loan of 0.1%. Ur scenario is good when u hv 300K in CPF and u intend to loan 300K given that the financing costs is low...

 

if I hv 300K in my ordinary and my loan is 300K, I will settle in full... at least 1 loan off my mind... nevertheless, I do friends adopting your strategy in fact they use other source of means to reduce interest further...but I prefer to pay less or no interest if possible given that it is still an expense. Also, I cannot take out my CPF...why not use it up...it will be accumulated over the next few years again...

 

I do agree with you that if one qualifies for HDB loan take it... if ur loan period is gonna stretch more than 10 yrs and loan amt is big enuff..

 

Actually it is the same irregardless. How much you have inside.

 

100K you early repay , left 200k interest of 2.6% , 300k loan , 100k in ordinary , 200k at 2.6% and 100k at 0.1%(or it gives you back 1.4% if you put it in special) depending on how you look at it.

Edited March 7, 2013 by CH_CO

[CH_CO]

There's a continuation to this story:

me , there was a fisherman whose hobby is to fish and he is so good that he does it for a living , being self dependent, he is happy contented with life. One day , one bank sales person comes along and tries to convince this fisherman to take up a loan to buy a bigger fish boat so that he can earn enough to retire and do what he likes. Buying that idea, he takes up a loan and works his ass off trying to repay the "loan" he took not to mention the interest. After 10 years of hard work he finally earns enough and retires only to find out that he doesn't need such a big boat and goes back to what he likes to do. Fish in the little ship.

 

Then one day came huge storm, and capsized the one little tiny fishing boat of this fisherman.. which now the fisherman desperately needs funding to buy another boat. The fisherman thought of the banker and contact him and said that its a great idea to have a bigger boar so that he can caught more fish with a bigger boat, and a bigger boat can withstand a bigger storm and less likely to capsize.. banker asked him to use his smaller boat as a secured collateral for the loan for the bigger boat. Fisherman says "it had capsized in yesterdays storm" banker replied "that's a shame, we can't give you the loan when its unsecured bec your income is not fixed".

 

Fisherman no choice, but to go back to the seas side and uses a fishing rod to fish, and start building up to save for a small boat.

 

Moral of the story.. if one prefers to remain small, better get insured. Else when opportunities strike, just be hardworking and start to grow big

 

 

Either way , does the banks actually "help"?