Do you plan to use HDB or bank loan for your upcoming house? What is your rationale behind your choice?

For my future own purchase I will check with all my banks partners on their rates and i will likely to go with bank loan due to the lower rates(if) and lower monthly repayment. I save a lot on the differences if accumulating them over 25 years repayment. Not touching my CPF OA monies means that CPF is still paying me 2.5percent p.a. interest rate.

If i use HDB loan and service with CPF, I don't get the 2.5percent interest from CPF. On top of it, CPF charge me 2.6 percent(0.1percent more) on the accrued interest for my usage of CPF which i have to return to CPF (still my own money out from my own pocket) upon sale of HDB flat. Many sellers wonder where their money goes after selling - back to their cpf account due to CPF OA usage.

However if you used cash to service loan and initial downpayment, upon sale of HDB will see CPF OA account 2.5percent p.a. growth and full cash proceeds without deduction back to CPF.

Ultimately the decision boils down to individual buyer's cashflow before making the choices.

Tze Wee

97723007​​​

I'm currently using Hdb loan to finance my house but due to some issues, I've been paying 3.18% interest instead of the usual 2.6% interest. I could only refinance and get 2.6% interest if my husband's name is out of his parents' HDB house. I'm thinking of switching to bank loan which could help me save that few hundreds of interest per month. What's your view if you're in such situations? Thanks in advance.

FYI: I've been paying 3.18% interest for coming to 3 years.