Flo Koh

26 Aug 2020

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With the current financial crisis, bank rates are at a low. Should we fund for our housing using a bank loan or HDB loan? Since interest rates are low but may fluctuate in the future.?

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Samuel Rhee

26 Aug 2020

Chief Investment Officer at Endowus

Hi Flo,

I would recommend that you fund your housing by bank loan if you can afford the cash downpayment. The HDB loan is tagged to CPF OA rates. In the case that interest rates increase in the future, CPF OA rates may increase and consequently HDB loans interest cost will increase.

You may want to enjoy the historically low bank rates now than pay for the 2.6% HDB bank loan rates.

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Maisul

23 Aug 2020

Youtuber at Google (Channel : Say Do Invest)

Bank loan might look interesting for now but when the economy recoveres, that is where HDB loan wins.

HDB loan offers a standard and fixed interest rate.

Whereas bank loans fluctuates over time. so pros and cons.

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In current interest rate climate, shld we go for bank or hdb loan? I also understand the idea of some who recommended taking HDB and switch to Bank loan. Also, don't intend to sell the resale flat?

I had been paying my HDB housing loan for the past 3 years. If I do Partial Capital Repayment using CPF, does it benefit me from the loan interest rate and also accrued interest on my Cpf.?

Is there such a thing as a good loan? My mum is convinced that HDB loans are good loans due to the relative low interest rates vis a vis other type of bank loans?

Is it wise to put all my savings (around $10k , still a student) into StashAway income portfolio / Syfe REITs? Especially since the current bank interest rates are sooooo low right now?

Back in 2018, the Fed Funds Rate Increase to 2.4%. But the Interest Rate for Home Loan was still kept low in Singapore. Why is it now the Fed Funds Rate at Increase to only 1.5% yet Interest is High