Asked on 19 Feb 2020
What are some other things that I should be taking into consideration? Are there other alternatives that I should be considering too?
If either one of you have a stable income, I would suggest to go for bank loan as the saving is quite substantial (1.8% vs 2.6%).
Only benefit of hdb loan is they are more flexible if you unfortunately fall into financial difficulty situation. So you have to judge based on yr situation
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A few questions to ask:
Stability of income
If interest rates were to jump 2%, would you be sensitive to it?
Generally, the biggest benefit of an HDB loan is it's fixed interest rate. You know exactly what you are getting yourself into, unlike a floating rate from a bank that might increase beyond 2.6%.
Another big benefit is that HDB will not penalize you should you decide to pay off your loan earlier. A bank would.
My suggestion is to quantify your two decisions and make a decision whether or not the risk is worth the potential savings.
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