Should I switch from a HDB Loan to a Bank Loan? Is this possible?
Bought my resale flat 4years ago with HDB loan at 2.6% interest, although there are few advantages of HDB (more lenient in late payment, no penalty on full repayment before loan period, etc.) I am also concerned that i have been paying pretty high interest 2.6% vs banks out there who are offering 1.8%+-?
Anyone who has switched from HDB to Bank loan care to offer some advice?
Thank you!
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The short answer is yes you can.
The long answer as to whether you want to do it depends on your cashflow sensitivity. Will you be affected if the interest rates go higher than your 2.6% fixed?
My advice is to do scenario stress testing based on your current cash flow.
Do a few scenarios whereby you assume a worse case scenario of 4%. You need to quantify the problem to see if it is worth the risk of interest rate increments.
You cannot switch bank to HDB loan unless you purchase another HDB.
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Alvan Sue Bing Teck
15 Feb 2020
VP at IAM Advisory
Can I ask how many years left on your mortgage?
Normally saving in interest payment will do good b...
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Yes you can. But how much is the outstanding loan? Some banks do have minimum quantum for mortgage loan.
Take note of the lock in period as well if u hv intention to sell the property in next 2 years.