Should I take the max 80% bank loan to repay my HDB?

When taking bank loan instead of HDB loan, there is a component typically for banks when you re finance every few years. The clause is mostly to have at least 100k in the loan.

If HDB loan is not available due to buying private, 1st make sure you have some liquid funds to tie out at least 6 - 12 months of expenses.

For any other investment, it depends on your usual habit as if you have not invest prior to this, you will find investment to earn more than your loan interest might not be something everyone can do consistently. If you would like to take risk, you can consider putting some to more liquid investment to allow you to pay your monthly mortgage since current economy climate means possible more job losses.

Hi Anon, in my opinion,

take the bank loan when:

1) you're confident that you're able to grow your money at a rate that is higher than the bank loan interest rate for extended periods of time

e.g. if you can grow your money @ 3% p.a. consistently, although you have to pay off the bank interest (@ say 2% p.a.), you effectively still will earn 1% p.a.

• Take note this comes with risk as it is not guaranteed that you'll be able to grow your money consistently at a rate higher than the bank interest rate

• For floating rate, if the interest rate increases, you'll have to grow your money at a higher rate as well

2) you really need the cash on hand to settle your living expenses

self explanatory - if you need your current cash holdings to live, then you're left with little choice but to take the loan first. But you should aim to increase your income during this period so that you'll have extra cash after loan repayment to save/invest for your future/retirement

• if you really need cash now, then maybe you can also consider HDB loan instead of bank loan as HDB loan downpayment will be lower

Just my two cents' worth, not meant to be financial advice/to influence your decisions. Do your own research into the different loan eligibility criteria, loan repayment conditions etc as well as consider your own needs & goals