I have a hdb housing loan of $196,000. Every month it’s accumulating $400+ interest, is bank loan better?

U can reach out to me on your mortgage loan since now the interest is low... Sibor 1m is now 0.77%, but since your loan is less tha 200k, we probably look at 3m sibor.
Go to my profile pic n click the fb logo and den pm me from there.
#planwithcolin

The Basics

Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit.

Here is a Guide:

Understanding Your Personal Cash Flow

Next, we need to know whether you are paying for the loan using cash or monies from your CPF Ordinary Account. At the same time, determine whether you wish to make an early repayment using cash or monies from your Ordinary Account.

The minimum early repayment is $5,000, with increments in multiples of $1,000.

More Details: https://www.hdb.gov.sg/cs/infoweb/residential/s...

Create a Budget

If you intend to use cash to make an early repayment, then we can create a budget that is capable of helping you to to this end. The best way to do this is via automation.

How I do My Budget:

How to create a Monthly Budget

Bank Loan

Generally, there is no guarantee that bank loan will always be able to offer a better rate over the same time period. Therefore, we need to create a spreadsheet that accounts for all these values over time. This includes potential legal fees and other admin charges.

On the whole, there are only two ways to repay your housing loans at a faster rate, 1) increase repayment amount; and/or 2) reduce effective interest rate over the same period.

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