Should I make partial repayment to my HDB loan now if I intend to sell my flat in the next few years and buy a resale, BTO or EC? - Seedly
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Haamaah

Asked 2w ago

Should I make partial repayment to my HDB loan now if I intend to sell my flat in the next few years and buy a resale, BTO or EC?

If so do you advise using CPF or Spare Cash?

Background:

BTO purchased in Jan 2017 at $345K

Took a max loan period of 30 years

Monthly loan payment of $808 using CPF. $404 each from myself and spouse

Remaining loan as at Jan 2021 $184K

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    Ryan

    Level 5. Genius

    Answered 2w ago

    It depends if you are able to generate returns from the money you intend to pay your house to get more than 2.6%. if you can do it, it is a way to abitrage and earn. E.g. if the money can return 4% gains, you net off with 4 - 2.6 = 1.4 % returns more than the amount of money used to pay the loan.

    If not, by doing lump sum repayment, you save on interest on these few years of paying the loan.

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    Haamaah

    2w ago

    Thanks Ryan, do you advise using CPF or Cash to pay?
    Ryan

    2w ago

    Depends if you do invest in getting better returns if you use OA to pay. And do note investing will be for quite some time. Also depends if you have liquidity. All these factors will give you a better idea
    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
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