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Anonymous

03 Jul 2023

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Any point in paying property loan fully if we intend to sell?

We are 2 years away from MOP and we are serving a bank loan, using cash to pay for it monthly. We intend to sell our house upon MOP and upon MOP, our fixed interest rate will rise from 1+% to floating rate. Calculated that we should be able to use cash & CPF to pay the remaining loan when we MOP. If the bank’s interest rate is still at 4+%, will it be a wise move to pay the remaining loan even when we intend to sell soon? Or there’s no point to do so?

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Ace

05 Jul 2023

If you have better use for your cash/cpf e.g. investment that pay higher than interest u are paying the bank go for investment. If not, to save on bank interest, definitely smarter to pay off loan.

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ET

03 Jul 2023

Personal view, if I have the cash for sure why not? you selling the property vs loan repayment are 2 different topics. Just leave your title deed with the bank ( with a fee of cos) till you sell your property. So that you do not need to engage the lawyer twice.

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