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Career

CPF

Loans

Savings

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Property

Is it silly to quit your job now for career switch?
Summer
Summer
Level 5. Genius
Answered 12h ago
The reason you decide on a career switch must be quite important to you, considering how you are looking to change despite the situation you are in. I don't think it is advisable to use cash to top up your CPF. Plus, you should really think about whether your emergency funds and savings are currently enough to support your everyday lives, which goes to say your living expenses and bills, beyond just mortgage payment.
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Parenting

Home Loan

Family

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Credit Cards

Debit Cards

My parents are retiring and I want to help pay off the remainder of their HDB mortgage. What is the best way to do that?
Tay WenHao
Tay WenHao
Level 6. Master
Answered 14h ago
By official means, no. However, if you go 1 big round, maybe. Check this out for yourself. Amex True Cashback 1.5% > Top up grabpay wallet Apply for Grabpay Mastercard (GPMC) Use GPMC > Topup NETS Flashpay Card @ GTM Use NETS Flashpay to pay via AXS machine
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Investments

P2P Lending

Loans

Payments

What are the downsides to P2P lending?
Tay WenHao
Tay WenHao
Level 6. Master
Answered 2d ago
1 downside which is the greatest fear by all, DEFAULTS. P2P is counted unsecured loans. In the event that the company goes bankrupt, there goes your money. 100% loss on your capital. Many have argued that you can try to claim whatever assest are left in the company, but those valuable assest will most likely be taken away by the banks first. Given any choice, the company will first seek loans from banks due to the lower rates. P2P interest is usually around 10% p.a.
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Personal Loans

Home Loan

Loans

Will personal loans affect housing loans? If so, how much?
SW
Shaun WQ Lim
Level 7. Grand Master
Answered 3d ago
Yes, the personal loan will be count in the total debt servicing ratio (TDSR) threshold of 60%. Monthly debt obligations count towards calculating a borrower's TDSR. For example, if a borrower has existing monthly debt obligations equal to 10% of their monthly income, then the maximum amount they can get for a property loan is based on 50% of their monthly income. So depending on the monthly repayment amount on the personal loan, the amount that you can borrow for your housing loan is adjusted. https://www.mas.gov.sg/regulation/explainers/tdsr-for-property-loans/calculating-tdsr-thresholds
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CPF

Home Loan

Interest Rates

Loans

Does it make sense top up CPF OA to earn 2.5% interest and use the money to pay off housing loan?
Tay WenHao
Tay WenHao
Level 6. Master
Answered 5d ago
Hi. Ive thought about the same idea as well. After doing some research and consideration, my final answer is No. A few things to note: 1. VC is irreversible. Although your intention is to use the money to buy HDB, it seems that you have 'withdrawn' the amount. However, in future if you were to sell your flat, you need to put back the full sum you used from CPF + interest. Which means that the 'profit' from the sale of flat will mainly go back to your CPF and trapped there till retirement. - E.g. Your OA is now $20k, you choose to topup another $20k. 5 years down the road, your OA have a total of $80k (principal 40k + accrued interest + your active contribution for 5 years when working) - You used the full 80k for HDB. - 10 years down the road, you decided to sell your flat. You will need to return the 80k + accrued interest to your OA. - However, it wont be a problem if you are holding the flat till retirement. 2. The OA interest rate of 2.5% isnt really great. You can easily beat that thru investments. Although yes. Many would argue on the risks etc and non guaranteed returns. However, there are also High Yield Savings Account with no risks. (However, the interest rate may change over time) But with these option, you money isnt locked in CPF till retirement. - SBC Jumpstart (below age 26) Since you are 25 now, you can still open the account and the first 20k will earn 2% p.a. (Just slightly less than CPF OA at 2.5%) - DBS Multiplier. 3 categories. Salary, Credit Card, Investment (Monthly ETF $100). This will allow you to earn around 2.2% p.a. for first 50k. If you have insurance category, you can get interest up to 100k.
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Financial Planners

Loans

Personal Loans

What does a credit approval report consist of?
SW
Shaun WQ Lim
Level 7. Grand Master
Answered 6d ago
Not sure in what context is your question related to. Did you mean the report from Credit Bureau Singapore for submission to HDB for loan eligibility etc? https://www.creditbureau.com.sg/why-credit-report-is-important.html From CBS website: Your credit report is a record of your credit payment history compiled from different credit providers. As most lenders will check your credit file to assess your credit worthiness prior to making a decision, a good credit repayment history will make it easier for you to obtain credit and to qualify for loans. By reviewing your credit report regularly, it allows you to be aware of any information that is uploaded on your credit file. The other advantage of monitoring your credit file is that it protects against possible fraudulent use of your personal details to obtain credit. Example of a credit report and what it covers in this link: https://www.creditbureau.com.sg/enhanced-consumer-credit-report.html
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Loans

DBS

Education

Refinancing

Interest Rates

Since the interest rates are lower now, is there any way I can refinance my DBS student loan?
W
Will
Level 2. Rookie
Answered 1w ago
I reached out to DBS and was told that they do not allow for student loan refinancing. Hope that provides some clarity. Those that have lost their jobs due to COVID-19 may want to consider deferring their education loan payments.
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Interest Rates

Savings

Loans

Investments

What will happen when the interest rates in Singapore fall below zero?
Tay WenHao
Tay WenHao
Level 6. Master
Answered 1w ago
Hi I doubt loans will be at 0%. As for fixed deposit accounts, as the name suggest, its fixed deposit. So it's fixed from the start you put in the money till maturity. As for those high yield savings account, yes, high chance the interest rates will drop and we will go back to the days of 0.05%. But highly unlikely it will go negative
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Loans

Home Loan

HDB BTO

Refinancing

Interest Rates

My parents are old and serving a 25 year home loan. Would it be possible for them to refinance now to take advantage of the lower interest rates? If they are not, is there anyway I can help?
Anon, Is your parent home a HDB or Private? If it's private, you can ask for Repricing (within the same bank) usually easier. For Refinancing (out of the current bank) there may be some checks which would render the application null (unsucessful). Age, income, TDSR / MSR (HDB/EC) would be taken into consideration. If all else fail there is a debt reduction program where one can paydown 3% of the outstanding loan to get a approval. If you intend to get a HBD on your own don't put your name (agree with Hariz, you can't anyway). It will hinder your applicaiton for a new flat. ( A family nucleus can only own one HDB, so you need to bear that in mind. )
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Credit Cards

General

Loans

Payments

How do I build a credit score as an expat in Singapore? I own multiple credit cards and pay all bills in full before the due date, but still don't have a credit score according to CBS. Any idea why?
Lok Yang Teng
Lok Yang Teng
Top Contributor

Top Contributor (Apr)

Level 9. God of Wisdom
Answered 2w ago
Are your credit cards issued by banks in SG? Are the cards you mentioned debit cards instead of credit? Or is there a mismatch in type of identification used (banks use passport number while CBS use FIN)? The clearest way to find out is to contact CBS directly. (Actually, owning multiple credit facilities lowers the credit score since it suggests the person is credit hungry.) Based on what you have listed, it does suggest there should be some credit score since you have owned the credit cards for more than 6 months. If the response from CBS is unsatisfatory, you can request for an investigation. If you are not satisfied with the investigation report, you can request for the Compliance Committe too look into it.
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