Should I refinance my HDB loan with a bank loan immediately after my downpayment?

My bto will be ready end 2021. Given the decreasing ir environment, can i :
1) make rest of downpayment (5%) and take up hdb loan
2) immediately refinance to bank loan for lower ir

With this plan is the max loan limit from the bank still 75%?

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Angeline Teo

01 May 2020

Calculator at The Internet

Valuation means bank will reject you.

if you can, hold out till you can afford 20% downpayment and go for bank loans.

Current interest rate of 1.5% is way lower than HDB loan of 2.6%

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Cedric Jamie Soh

22 Apr 2020

Director at Seniorcare.com.sg

You can refinance, but banks would not give the full value of the loan (loan to value) you took from HDB.

The bank wants to expose to only 75% of the value of the HDB.

So even if you take a HDB loan and paid only 5% and you immediately approach a bank, the bank will see the loan to value, and only offer a partial amount.

They do not want to be exposed to 95% of the value of the HDB. This is a commercial decision.

You may try to secure 25% of the downpayment for the HDB, as the interest rate saving is well worth it. :)

Or if you can't wait, do the HDB till at least 25% is paid up before approaching banks to refinance.

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