If we are going to use a bank loan for HDB BTO, will they require you to offset with your OA first?

I understand that we can now keep $20K in our OA before it is wiped out by the HDB loan. If we are going to use a bank loan will they require you to offset with your OA first?

Discussion (2)

What are your thoughts?

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Mortgage Master

05 Jan 2021

If you use a bank loan you do not need to offset with your OA first.

You do not need to "wipe out" your CPF OA. Infact you can even choose to use $0 from CPF OA if you wish.

However this comes with pros and cons as well.

You can either look it up at

https://blog.seedly.sg/the-complete-guide-bank-...

Or here

HDB Loan vs Bank Loan - Which is Better for You? - Mortgage Master Blog

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1M45

30 Dec 2020

I use bank loan. Never wipe out. Monthly Installment deduct from there.

Alternatively move the $$ from OA by investing, then after HDB wipe out. Transfer back?

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Write your thoughts

Do you recommend a bank loan or HDB loan if planning to sell a BTO after MOP? HDB Loan will require you to pay back everything to CPF, the remaining loan amount is not credited to OA right?

Can CPF OA be used to service my bank loan for HDB BTO? Or are bank loans only serviceable by cash?

HDB is going to wipe out most of my OA when I buy BTO. Do you think I should let it wipe out my OA(excluding first 20k) or do you think I should start accumulating STI ETF using money in OA?

During my second HDB appointment, I indicated for HDB loan. My BTO key collection is end 2022. Can I change to Bank loan now instead? If ok, by when i need to decide to go for bank loan? thanks!?

Which is the better loan option to take for HDB BTO? HDB or Bank Loan? What is the typical loan amount as a % of property price? If one has ability to pay up for the property, should one do so and reduce the % of property price that is using loans?

Do you recommend a bank loan or HDB loan if planning to sell a BTO after MOP? HDB Loan will require you to pay back everything to CPF, the remaining loan amount is not credited to OA right?

Can CPF OA be used to service my bank loan for HDB BTO? Or are bank loans only serviceable by cash?

HDB is going to wipe out most of my OA when I buy BTO. Do you think I should let it wipe out my OA(excluding first 20k) or do you think I should start accumulating STI ETF using money in OA?

During my second HDB appointment, I indicated for HDB loan. My BTO key collection is end 2022. Can I change to Bank loan now instead? If ok, by when i need to decide to go for bank loan? thanks!?