davidbslee 1 Report post Posted December 28, 2011 Hi, I am currently on DBS Hdb loan with 3yrs lock-in. Loan amount is 220K & now left about 212K. I have 60K inside my OA now & wanted to repay the loan with 50K as well as to reduce the loan from 30yrs to 15yrs. It is possible to do that? Please advice. Thank you. Share this post Link to post Share on other sites
bepgof 20 Report post Posted December 30, 2011 Hi, I am currently on DBS Hdb loan with 3yrs lock-in. Loan amount is 220K & now left about 212K. I have 60K inside my OA now & wanted to repay the loan with 50K as well as to reduce the loan from 30yrs to 15yrs. It is possible to do that? Please advice. Thank you. 3 yr lock in means "you cannot do anything" to the mortgage loan within this 3-yr period as to partial prepayment and or altering loan tenure, except paying monthly instalment. If you MUST do those you mentioned, be prepared to pay "penalty", usually at 1.5% of the outstanding amount. Some mortgage loan contracts do allow one or two times of "free conversion" within a specific period, again usually within a year. Go through your contract terms again carefully.The only part I like about the HDB mortgage loan is: foc for above, need only bring IC with you. Share this post Link to post Share on other sites
davidbslee 1 Report post Posted January 1, 2012 3 yr lock in means "you cannot do anything" to the mortgage loan within this 3-yr period as to partial prepayment and or altering loan tenure, except paying monthly instalment. If you MUST do those you mentioned, be prepared to pay "penalty", usually at 1.5% of the outstanding amount. Some mortgage loan contracts do allow one or two times of "free conversion" within a specific period, again usually within a year. Go through your contract terms again carefully.The only part I like about the HDB mortgage loan is: foc for above, need only bring IC with you.Thanks for the advice Bepgof, I somehow get what you mean. I have to wait till my lock-in period finish, go ask same bank for repicing of loan and tell them that I want to shorten the loan period and dump the 50K CPF amount on the next contract. This may make me reach my 270K VL faster. Should I or Should I not to do that?? The worries I had is the bank interst rate when years goes by... Share this post Link to post Share on other sites
bepgof 20 Report post Posted January 2, 2012 Thanks for the advice Bepgof, I somehow get what you mean. I have to wait till my lock-in period finish, go ask same bank for repicing of loan and tell them that I want to shorten the loan period and dump the 50K CPF amount on the next contract. This may make me reach my 270K VL faster. Should I or Should I not to do that?? The worries I had is the bank interst rate when years goes by...Don't bring worries over after sun has set, otherwise more wrinkles, it's hard truth. One day's worries is enough for one to bear.Worry relates to "life-style" choice. Results of today are the choices made yesterday.Some 18 years ago, I made a "life style" choice that triggered a series of events which eventually delayed my plan to pursuit a bachelor degree in business finance. I wait and waited, finally this yr I can fulfill the dream i had 18 yrs ago.I wrote this here hoping readers to weight carefully abt making those important "life style choices". Don't suffer from "myopia". The happiest ppls do not necessarilly have the BEST THINGS. They simply APPRECIATE the things they have.Money does not create man but it is a man who created money. Live your life as simple as you are. Don't do what others say, just listen them, but do what you feel good. Don't go on brand name, just wear those things in which you feel comfortable. Don't waste you money on unnecessarily things, just spend on those who really in need rather.After all it's yr life then, why give chance to others to rule our life? No debt is always the best choice. Share this post Link to post Share on other sites
singaporesiborwatch 0 Report post Posted January 29, 2012 Hi davidbslee, Yes, wait till your lock-in period is up and give your bank a call to reprice your loan as well as shorten the loan period/make a lump sum repayment. Although interest rates are creeping up slightly, they are expected to remain low in the next few years.Thanks for the advice Bepgof, I somehow get what you mean. I have to wait till my lock-in period finish, go ask same bank for repicing of loan and tell them that I want to shorten the loan period and dump the 50K CPF amount on the next contract. This may make me reach my 270K VL faster. Should I or Should I not to do that?? The worries I had is the bank interst rate when years goes by... Share this post Link to post Share on other sites
hellosingapore 0 Report post Posted January 29, 2012 Hi davidbslee, Yes, wait till your lock-in period is up and give your bank a call to reprice your loan as well as shorten the loan period/make a lump sum repayment. Although interest rates are creeping up slightly, they are expected to remain low in the next few years.Yes, especially now that the US federal bank has announced a low interest rate environment, there are headwinds for interest to escalate suddenly, though it is very possible for interest rates to creep up from current levels Share this post Link to post Share on other sites
