17 Nov 2020
In the current economic climate is it better to get a 5 year fixed interest home loan or 2 year fixed interest and re price on the 3rd? E.g 5 year 1.5% Vs 2 years 1.28% from DBS?
Is it better to get a five year fixed interest home loan or two year fixed interest and re-price on the 3rd?
Depends on which year are you in for your property.
If you're in your 2nd year of your HDB unit, u would prefer to go for a 3 years lock in.
Because just when your property MOP, you can decide if you want to sell by then.
If you take a 5 year lock in, and you decide to sell at MOP and still have 2 years of lock in left, you need to pay 1.5% penalty of the outstanding loan amount.
I would go against taking 2 years. if you decide to refi after 2 years, you need to payback any legal fee subsidy if you have taken for this refinancing.
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