Need Advice: Should I pay off my HDB loan with by CPF?

[GOD IS MY DOG]

Took a 30 years loan when I buy my HDB resale.

Realised that I still have S$100K loan outstanding. When I check my CPF and my wife's CPF, we now just nice have combined 100K in our ordinary account.

Should I simply pay off the HDB loan with our CPF monies?

Or just keep in CPF to learn interest? But I also need to pay interest for my HDB loan.

better pay off before the CPF ponzi game finally COLLAPSE..............

 

[chootchiew]

The answer is YES. The insurance will pay off the loan.

The correct answer should be depend on who surrender IC. There is a owner and a co-owner. If owner surrender IC, co-owner is insured. But if latter surrender IC, owner is not insured.

 

[tonychat]

haha, Thanks for the information.

Me really Sua Ku (mountain tortise). Anyway, for what I know, you cannot do anything with this lease. Cannot re-mortgage. This taught me a very important lesson, the HDB doesn't belong to me even if I have paid in full. It still belong to HDB. But I still paid in full as I want to get out of this HDB/home ownership bullshit.

The only thing I can benefit from this HDB pigeonhole is to rent out at at a nice price.

Sorry but i find your mindset pretty strange. If you do not like the whole hdb thing, then why buy it in the first place?

 

[red amoeba]

refinance ur flat...go to get a private loan..now rates r cheap...1.5 %...

u earn 2.5% on your ordinary a/c...but you pay HDB loan at 2.6%

simple maths say you go outside to refinance n u continue paying using ur ordinary a/c...

u draw down on your ordinary a/c. when u time to take CPF...no $$$ after min. sum....

 

[lianbeng]

Took a 30 years loan when I buy my HDB resale.

Realised that I still have S$100K loan outstanding. When I check my CPF and my wife's CPF, we now just nice have combined 100K in our ordinary account.

Should I simply pay off the HDB loan with our CPF monies?

Or just keep in CPF to learn interest? But I also need to pay interest for my HDB loan.

lianbeng already cleared all monthly installments with remaining cpf money liao - after all cannot take back mah.

 

[Khun Ying Pojaman]

The correct answer should be depend on who surrender IC. There is a owner and a co-owner. If owner surrender IC, co-owner is insured. But if latter surrender IC, owner is not insured.

There is no such thing as owner vs co-owner. Both are co-owners. In the context of what we have been discussing, the proper term of reference is "the insured member" of the policy.

 

[peterlth]

Good suggestion! Thanks!

u draw down on your ordinary a/c. when u time to take CPF...no $$$ after min. sum....[/QUOTE]

 

[Narong Wongwan]

Now still got HDB loan? I thought all done by banks liao?

 

[chonburifc]

Now still got HDB loan? I thought all done by banks liao?

Think still have for first timer or buying direct from HDB. Any bros can verify?

 

[Narong Wongwan]

Think still have for first timer or buying direct from HDB. Any bros can verify?

Oic....bro u said want to sell your current flat to buy another new flat.....if your ever bought new flat before then you need to pay extra for the next one...in cash a 5 figure sum. Also new flat got to wait for ah khaw to build.....

 

[chonburifc]

HDB pigeonholes will always be a liability until it can generate income. Ruling party is holding the peasant for ransom by withholding your CPF money using your pigeon hole. The only way to break from this is to rent out your pigeonhole. Use the income from the rental to invest in other things or in worst case, keep the money in the bank. Only payback CPF the minimum each month.

In order to do this, you need to look for alternative accomodation. If can share with parent or siblings, will be best. If peasants can do that in the past, why not now? If single, even better, find an oversea opportunity and move out.

 

[chonburifc]

Oic....bro u said want to sell your current flat to buy another new flat.....if your ever bought new flat before then you need to pay extra for the next one...in cash a 5 figure sum. Also new flat got to wait for ah khaw to build.....

Have never bought a new flat, only resale flat. Wanted to sell existing flat but was advised to wait for SERS (enbloc) then sell.

Now I rented out legally but have to pay IRAS 10% of Annual Value. No fish prawn also good.

 

[cunnilaubu]

my personal preference will be to pay up and forget about monthly instalment.Anyway, CPF ordinary account is meant for housing purpose.

If I am correct, HDB charges 0.1% above the interest CPF pays to ordinary account. At the moment, CPF pays 2.5% while HDB charges you 2.6%.
I would suggest pay all up if you can.

 

[chonburifc]

Read somewhere few days back where couple 'divorce' so husband and wife can own separate flats and one of the flats will be rented out. The couple still remain together in one of the flat. Think this is a good way to screw back HDB. Afterall, have so much CPF for what if it's so difficult to withdraw. Rather have more cash on hand than millions in the CPF which don't know have a chance to touch or not. Don't believe the shit that Lim Shit Say says.

 

[whoami]

my personal preference will be to pay up and forget about monthly instalment.Anyway, CPF ordinary account is meant for housing purpose.

Current HDB loan interest is 2.6%. Past few years and even now some banks still charge lower than 2.6% on ur home loans. Why exhaust all ur CPF ord a/c balance that earns u 2.5% when banks charges u lower than the latter?

 

[scroobal]

2.6% is cost to you and you will not see ever again. The amount in CPF ordinary is useless even in a emergency. Just pay it off in full.

I read half the comments here and I really wonder why people cannot even figure out something that is staright forward.

Then again, I know of people who have 6 figure savings in the bank but have large mortgage and car loan. At a time when interest rate is so low.

 

[peterlth]

Now still got HDB loan? I thought all done by banks liao?

Yes, still HDB loan. Took up the loan about 12 years ago. Bought a cheap 2 room HDB unit.