any experience soul?

i went to hdb hub to enquire on this few days ago. You can just go to hdb hub to do partial redemption. no penalty involve, etc.

try not to shorten, as once u shorten u are unable to extend anymore.

jus make lump sum payment once ur CPF have like 10k, HDB will revised ur outstanding amt again. hope it helps.

hi,

if u have spare cash, invest it rather than prepay ur hdb loan.

that's because hdb loan has v v low interest rate (0.1% + CPFOA rate of 2.5% = 2.6%). if ur hdb loan still has more than 10 years to go, most investment over such long period can v probably earn u an interest rate higher than 2.6%.

for example, let's consider two scenarios:

(1) u have $10k spare cash and u use it to prepay hdb loan which still has 13 years more to go; u'll save a total of $4016.28 in the interest u pay.

(2) u invest the $10k in Singapore Govt Securities maturing in 13 years' time and u get a GUARANTEED return of 2.97% (http://www.fundsupermart.com/main/sgs/SGShome.tpl) (the guarantee is by the Singapore Govt no less), and continue to pay interests to hdb as normal. u'll receive a total return of $4670.61 from the SGS, and thus after deducting the interest paid to hdb, u pocket the difference, and so, u're $654.33 richer!

if u're more risk-tolerant, u can invest in shares, which can potentially gain u much more than 2.97%, and u'll be richer by an even greater amount.

if u have a financial planner, talk to him or her for advice.

IMO,

For cash, use that for investment, the return will be better than the CPF 2.5% interest

For $$ in CPF, I will do repayment.

here's the link to do your partial redemption if you're keen.

http://www.hdb.gov.sg/fi10/fi10201p.nsf/WP...an?OpenDocument