If you’re delivering an enthusiastic HDB mortgage to suit your apartment, the pace could have been dos.6% provided I can remember. It is labelled so you’re able to CPF dos.5% interest rate. The stability of your HDB loan rate may sound an excellent, but it’s currently a lot more more than individual bank loans. One to financial I’m sure provides 5 years on step one.4% repaired speed.

This can be a bit unlike a great many other regions, in which rates of interest are a lot higher. Therefore, there is certainly better urgency into the rushing to settle the latest financial, given the higher level.

Even though it is usually good to reduce interest costs, all of our comparatively lower speed contributes a different sort of aspect compared to that. It could, for-instance, end up being great for look after an excellent cash flow, or features dollars to expend in other places in addition to our property, unlike giving full priority so you can mortgage repayment.

• Are there prepayment charges?
• Just what are your existing discounts?
• Do you own a private possessions or an enthusiastic HDB flat?
• Do rushing the home mortgage cost optimize the money buildup?

Were there Prepayment Punishment?

For HDB money, you’ll find never people prepayment charges, so you’re able to go ahead and prepay as much as you for example.

To own personal loans from banks, be aware that there may be prepayment penalties getting a certain period of time, including in the 1st three to five age. If you try and also make very early money inside go out, there are a punishment imposed (the bank is trying to locate back the eye they’d deserve).

Which penalty can be around step one.5 % of your amount you will be seeking to prepay, and it’s really almost never really worth the costs; you need to waiting right up until you can prepay versus charges. Read More >