Clear access in OA to make advanced payment to HDB bank loan

[Nautilus]

my repayment was kinda weird ...

 

when i left a small amount of loan (a few Ks), i went to HDB and told them i wanted to clear the loan one shot with my CPF, which was more than sufficient.

 

however, the staff at the area office told me that i would have to pay the final sum in CASH if i wanted do that.

 

so i just told her to forget it and continue with my CPF monthly deductions instead.

I think the staff must have got the facts wrong.

 

You will need to pay a small sum for legal fees when you clear your loan. This is regardless if you are paying till the end of your installments or clearing it one lump sum.

 

If I recall this amount can be paid by cpf as well.

[Stratovarius]

Hi all,

 

Just wondering whats the best thing to do or rather what are my options if i have access in OA account and still servicing a HDB bank loan.

Theres about enough to pay 24months of installments in my OA(cos my house is dirt cheap so installment is pretty low)

Is there any way i can make advanced payments or clear my OA to decrease the total sum?

If yes, is that a smart move?

 

What else can i do with this access?

 

Thanks in advanced guys

You can do partial repayment anytime. I'm keeping 12 to15 months worth of monthly repayment in the OA and do partial repayment every year to reduce the interest.

[Ysc3]

I think the staff must have got the facts wrong.

 

You will need to pay a small sum for legal fees when you clear your loan. This is regardless if you are paying till the end of your installments or clearing it one lump sum.

 

If I recall this amount can be paid by cpf as well.

I thk only left about $4k or something .... and I am deducting $2xx/mth ... so left less than 2 years .... so I just told her to forget it lor ... interest just give them lah ...

[inlinesix]

I thk only left about $4k or something .... and I am deducting $2xx/mth ... so left less than 2 years .... so I just told her to forget it lor ... interest just give them lah ...

It makes sense to pay down when principal is high to reduce interest cost.

 

Now, the interest is minor only.

[Ysc3]

It makes sense to pay down when principal is high to reduce interest cost.

 

Now, the interest is minor only.

my mother tell us not to otang whenever possible.

[Friendstar]

so from reading all the replies, i guess best is to keep as buffer. Thanks guys. thinkin of shifting to bigger house but im gona lose money with my current house, as i bought it during the peak period. now my house is still same price so i rugi the interest.

Quote

Theres about enough to pay 24months of installments in my OA(cos my house is dirt cheap so installment is pretty low

 

 

 

So is your house cheap or expensive?

 

From my inference... It's dirt cheap but u bought during the peak?

 

Hard to reconcile.

[Deeq]

Quote

Theres about enough to pay 24months of installments in my OA(cos my house is dirt cheap so installment is pretty low

 

 

 

So is your house cheap or expensive?

 

From my inference... It's dirt cheap but u bought during the peak?

 

Hard to reconcile.

 

let me put it in point form so u can understand better:

 

- cheap as compared to other houses

 

- i bought during peak (despite it being more on the high side, it is still relatively cheaper than other houses)

 

5mil for a banglow in Sentosa is cheap, yet 5mil is still ex for a house.

 

Ada paham?

[Friendstar]

I hear u.

 

And you r right in a way. It's all relative.

 

Like what I said, just find it hard to reconcile "dirt cheap" and "buying during the peak".

 

It's like my friend telling me "hey I bought an Altis at 140k during the Coe peak and it's dirt cheap."

 

Btw. U Malay?

[Piyopico]

Pay or dun pay off hdb loan is something to think about but the question certainly is not the interest. You either owe hdb 2.6% or owe cpf 2.5%.... lppl

 

You pay off cos you wanna reduce your loan ratio etc.... You keep cos you may wanna use it instead of cash for next property purchase etc.

 

Unless cpf and hdb interest differential is more than 0.5%...... if not dun need to think so hard..... Unless you are Lim Swee Say.

[F10_Blackhawk]

Pay or dun pay off hdb loan is something to think about but the question certainly is not the interest. You either owe hdb 2.6% or owe cpf 2.5%.... lppl

 

 

The best and clearest statement of truth on this matter, lppl. Only way to avoid this is one uss own cash.

[Dafansu]

Pay or dun pay off hdb loan is something to think about but the question certainly is not the interest. You either owe hdb 2.6% or owe cpf 2.5%.... lppl

 

You pay off cos you wanna reduce your loan ratio etc.... You keep cos you may wanna use it instead of cash for next property purchase etc.

 

Unless cpf and hdb interest differential is more than 0.5%...... if not dun need to think so hard..... Unless you are Lim Swee Say.

 

actually CPF is still our money as interest. But HDB 2.6% is something u can't get back at all. 

[Deeq]

actually CPF is still our money as interest. But HDB 2.6% is something u can't get back at all. 

 

Very good point there