Should i pay up my hdb loan

You have higher interest-rate debts that you should clear first. If you have spare cash, always prioritise other debts over your home loan (e.g. credit card loans accrue at around 26 per cent per annum). You should never pay off the home loan first, as it’s the debt with the lowest interest.

Is it worth to pay off HDB loan early?

There’s no point forking out the prepayment penalty, if it would wipe out most of the savings from paying less interest. If you are using an HDB loan however, there is no prepayment penalty.

Is it better to pay off HDB loan early using CPF?

By making early repayments, we will be saving between 1.7% to 2.6% in yearly interest payments. It’s not far-fetched to invest on our own to achieve a better return. Simply contributing this sum into our CPF SA will yield us an annual return 4.0%.

Should I refinance my HDB loan 2020?

Refinancing may be a good idea to save some money, especially if you intend to stay in the same flat for a few more years. With banks currently offering a lower interest rate than the HDB Concessionary Loan, refinancing with a bank loan might actually bring you significant cost-savings.

How can I reduce my HDB loan?

To reduce your financial commitments, you can also use your CPF Ordinary Account savings to make partial or full redemption of your outstanding housing loan before you reach 55. However, the CPF Housing Limits may apply.

Is it wise to pay off home loan early?

You won’t be able to claim deduction on interest paid above Rs 2 lakh. So, if your annual interest outgo is higher than Rs 2 lakh, it makes sense to prepay the loan, and save on future interest payment. For example, the annual interest on a Rs 70 lakh outstanding loan, at 9.5%, comes out to be Rs 6.65 lakh.

Will HDB wipe out CPF?

Those taking an HDB housing loan will have the option of retaining up to $20,000 CPF savings in each buyer’s Ordinary Account (OA). The rest of the available CPF OA balance must be used to pay for the flat purchase. Those taking a housing loan from FIs may check with the FIs for their conditions.

What if I cant pay my HDB loan?

If you find yourself in financial hardship, these options may be available to you: Paying the housing loan arrears by instalments within a reasonable period. … Deferring or reducing monthly loan instalments for 6 months. This is to help flat owners facing short term difficulties in servicing their loan instalments.