Hdb Loan Help

[padlee 0]

Hi,

I would like to enquiry about number of years on HDB Loan.

Let's say the loan amount is 18k. I've calculated if we take about 18 years loan it will left our CPF OA account like about a few dollars inside. The good thing i see with this is it significantly reduce interest but it's risky in terms if one of us got retrenched or pay cut. I was reading in another thread if we take 30 years hdb loan, we can choose to shorten the number of years.

Do you advise us to take the maximum loan or the shortest possible loan? This is a new flat by the way so i guess VL is not applicable? Any inputs would be appreciated.

Thanks!

[albertchng 0]

Take maximum repayment period for the hdb loan amount, along the way if you strike lottery, you can 1 shot pay full or pay lump sum every few years to shorten the repayment period.

[therat 18]

1. take 30 yrs loan, interest pay more. But in-between , you can do partial repayment w/o fee. In the end, total loan might be lesses than 30 yrs

2. take shorter loan, if 1 party got retrench or pay cut. CPF OA not enough. Need to come out cash. Don't forget CPF Contribution % is not fix. Government can change any time.

3. regardless of new or resale flat. VL is inside the picture.

4. As I don't know your age. Pls check CPF web.

Now CPF is employee 20%, employer 16%. However the ratio to OA, SA and MA is different for different age group.

You can't just look at 20+16=36% only. This 36% is not across all age group.

Assume you and your spouse each salary >$1500

20+16% only up til 49 yrs old

50 yrs - 55 yrs old is 18+12 %

55-60 yr old is 12.5 + 9%

This is Part I.

Now Part II

Read Table A1

http://mycpf.cpf.gov.sg/Employers/Gen-Info/cpf-Contri/ContriRa.htm

For allocation rate to OA , SA and MA

Below 35 yrs old, 23% went to OA

35 - 45 yrs old, 21% out of 36% went to OA

45- 50 yrs old, 19% out of 36% went to OA.

From the table, you can see. Even your CPF Contribution still 36% but the $$ that went into your OA account is less

[padlee 0]

1. take 30 yrs loan, interest pay more. But in-between , you can do partial repayment w/o fee. In the end, total loan might be lesses than 30 yrs

2. take shorter loan, if 1 party got retrench or pay cut. CPF OA not enough. Need to come out cash. Don't forget CPF Contribution % is not fix. Government can change any time.

3. regardless of new or resale flat. VL is inside the picture.

4. As I don't know your age. Pls check CPF web.

Now CPF is employee 20%, employer 16%. However the ratio to OA, SA and MA is different for different age group.

You can't just look at 20+16=36% only. This 36% is not across all age group.

Assume you and your spouse each salary >$1500

20+16% only up til 49 yrs old

50 yrs - 55 yrs old is 18+12 %

55-60 yr old is 12.5 + 9%

This is Part I.

Now Part II

Read Table A1

http://mycpf.cpf.gov.sg/Employers/Gen-Info/cpf-Contri/ContriRa.htm

For allocation rate to OA , SA and MA

Below 35 yrs old, 23% went to OA

35 - 45 yrs old, 21% out of 36% went to OA

45- 50 yrs old, 19% out of 36% went to OA.

From the table, you can see. Even your CPF Contribution still 36% but the $$ that went into your OA account is less

Thanks for your input. Didn't know about the CPF contribution age. :x

1) The partial repayment is there any minimum sum?

2) Let's say we want to sell our flat in 5 years time, would it still be advisable to take 30 years?

3) Can you elaborate more about Valuation Limit?

Appreciate your help!

[therat 18]

Thanks for your input. Didn't know about the CPF contribution age. :x

1) The partial repayment is there any minimum sum?

2) Let's say we want to sell our flat in 5 years time, would it still be advisable to take 30 years?

3) Can you elaborate more about Valuation Limit?

Appreciate your help!

1. If take HDB loan. I think min sum like $500. If Bank Loan, need to check with Bank

2. 5 yrs is a long way. No one know

3. For more information about valuation limited. Check CPF. If I don't remember wrongly, now VL is 110%

[padlee 0]

1. If take HDB loan. I think min sum like $500. If Bank Loan, need to check with Bank

2. 5 yrs is a long way. No one know

3. For more information about valuation limited. Check CPF. If I don't remember wrongly, now VL is 110%

thanks bro. have a clearer pic now. will go for 30 years case close