Need advice on housing loans

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Need advice on housing loans

Postby hypergatak » Tue Sep 20, 2011 7:51 pm

Dear all

My friend just signed an option to purchase a hdb 4 room flat and is looking around for a housing loan from bank urgently. He does not qualify for hdb loan.

Greatly appreciate if anyone can share your experience in choosing housing loan. In your opinion, which bank offers the most favorable rates/terms and whether to take variable or fixed rate loan? Thanks

hypergatak
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Re: Need advice on housing loans

Postby verykiasu2010 » Tue Sep 20, 2011 10:59 pm

hypergatak wrote:Dear all

My friend just signed an option to purchase a hdb 4 room flat and is looking around for a housing loan from bank urgently. He does not qualify for hdb loan.

Greatly appreciate if anyone can share your experience in choosing housing loan. In your opinion, which bank offers the most favorable rates/terms and whether to take variable or fixed rate loan? Thanks


you can go to dollardex.com

they can assess and the banks will call you

note : I am not related to that website
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Re: Need advice on housing loans

Postby atrecord » Fri Sep 23, 2011 6:36 pm

I do not know the latest bank offerings now. Actually when I bought my house last year, I was also not fully aware of them then.

My property agent was very enthusiastic in recommending me to this banker from HSBC, but it doesn't take a rocket scientist to know that she will get a cut from the banker if i signed up with HSBC.

I eventually got a loan broker who presented me the main offerings from the major banks, and took time to explain the pros and cons of each.

If you're keen, I could let you have his contacts.

atrecord
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Re: Need advice on housing loans

Postby Fxman » Wed Oct 05, 2011 9:18 pm

I have a friend who is mortgage banker over at UOB. They are having some promotion now.

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Re: Need advice on housing loans

Postby hypergatak » Thu Oct 06, 2011 6:30 am

Thanks all, they decided to go with anz.

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Re: Need advice on housing loans

Postby kiasubox » Thu Oct 13, 2011 9:33 am

For me, i check out all the rates from private banks, HDB bank loans interest is too high, there're many still think that is more favourable to borrow from HDB but actually not necessary true.
Right now the sibor is so low, my monthly interest now is only 1%+, I got mine from HSBC and I told my housing agent about my selection she then intro the banker to me and she share her commission with me, I got about $500 from her, not much but I can use it to buy my electrical appliances for my new house :)

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Re: Need advice on housing loans

Postby krazy » Thu Oct 13, 2011 11:39 am

kiasubox:
this interest is not fixed, right?

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Re: Need advice on housing loans

Postby kiasubox » Thu Oct 13, 2011 11:46 am

krazy wrote:kiasubox:
this interest is not fixed, right?


not fixed, is floating.
In the short term, the sibor will not increase too much, if you can repay your loan in 10-20 years, get floating.

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Re: Need advice on housing loans

Postby dicky » Thu Oct 13, 2011 4:06 pm

DH pay cash for HDB flat as wiser if taking home loan from banks, irregardless of fix or floating, and it is more $x to use CPF funds to repay bank. His theory goes like this:

Using full CPF as example: HDB Loan 2.6%, when sell then put back cpf + accural int 2.5%. So effectively HDB Loan pay 0.1% as simple calculation...

Using full cpf repay bank loan of 1.xx%: When sell, repay cpf + accural int 2.5%. So effectively pay bank int 1.xx% as simple calculation...

DH makes it sound so simple :scratchhead: Insist pay bank cash, let CPF remain earn 2.5%. :sweat: Makes us so tight every mth while we haven't pay fully for our HDB at that time. :nailbite:

Still thinking DH must have calculate wrongly, concept wrong, but dunno how to argue him back :imconstipated:

Any hints.... :shrug:

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Re: Need advice on housing loans

Postby kiasubox » Thu Oct 13, 2011 4:18 pm

dicky wrote:DH pay cash for HDB flat as wiser if taking home loan from banks, irregardless of fix or floating, and it is more $x to use CPF funds to repay bank. His theory goes like this:

Using full CPF as example: HDB Loan 2.6%, when sell then put back cpf + accural int 2.5%. So effectively HDB Loan pay 0.1% as simple calculation...

Using full cpf repay bank loan of 1.xx%: When sell, repay cpf + accural int 2.5%. So effectively pay bank int 1.xx% as simple calculation...

DH makes it sound so simple :scratchhead: Insist pay bank cash, let CPF remain earn 2.5%. :sweat: Makes us so tight every mth while we haven't pay fully for our HDB at that time. :nailbite:

Still thinking DH must have calculate wrongly, concept wrong, but dunno how to argue him back :imconstipated:

Any hints.... :shrug:


I guess he is right especially now bank loan interest is so low, by using CPF you're losing the interest from CPF just to save the small interest from bank loan. However, this is provided if you've more cash and got nothing to do with it.
If you've other investment plan on your cash, then the story will be different. E.g. yield of return from shares will definitely be higher than your CPF interest, but provided you don't lost money there.
If I've extra cash on hand, I'll probably buy another property for long-term investment and get some rental.
Another argument will be, although CPF gives high interest, you won't be able to spend the money other than buying property and shares. U can accumulate a lot of $ in there, but when you reach retirement age you can only get it on a monthly allowance, till u die then the $ pass on to your kids.

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