facebookShould I reduce my monthly mortgage after I have made a partial capital repayment to HDB in order to maximise my cash proceeds if I intend to sell my BTO in 2-3 years time? - Seedly

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Anonymous

18 Apr 2019

Property

Should I reduce my monthly mortgage after I have made a partial capital repayment to HDB in order to maximise my cash proceeds if I intend to sell my BTO in 2-3 years time?

Also, how should I decide how much cash to use to pay off my HDB loan? Can I consider using the outstanding cash I have after deducting my current cash holdings with the total emergency funds for both me and my spouse? (Ie 6 months of our combined monthly salary?)

Discussion (1)

What are your thoughts?

Henry Hoe Yong Zhi

Henry Hoe Yong Zhi

19 Mar 2019

Co-founder at Cantley Lifecare Pte Ltd

It depends on your financial goals. As long as you reduce the amount of CPF you use to finance your HDB, the less accrued interest you will need to repay CPF when you sell off your BTO later.

Having 6 months of emergency funds is a good indicator but you may also want to consider how much cash you require to fund your current lifestyle.

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