Redeem Housing Loan

[cherrygal]

My mom settled with cash and she says it only took less than a month. Cash is very fast and banks are very efficient.


I did block repayments with both cash and CPF and it is the CPF part that took the longer time. CPF Board has some cut-off day that will result in the deduction happening only the following month or so. So if you miss that cut-off day, then got to wait for the next period. So if you intend to use CPF, allow them some time to process.

[ngl2010]

heyhoe:

Hi,


Appreciate some guidance here.

I'm thinking of redeeming my housing loan with UOB using our CPF fund. Should I use UOB panel list of lawyers or get my own lawyer? If I should get my own lawyer any recommendation?

Also, I understand that there might be a delay in CPF releasing the sum. How can I do so to realign the payment accordingly. I don't have so much cash to pay unless using CPF.

Thanks!

I'm just thinking... I maybe wrong... CPF gives 2.5% interest and UOB's housing loan interest is lower than 2.5%. Why redeem the loan?

[heyhoe]

Hi cherrygal,


Thanks for the info.

Mine is a HDB but using UOB loan. So, that means it is best I check with CPF first on when is the deduction date. I’m paying using CPF thus need to coordinate this well.

In this case, is it better if I use UOB panel lawyer or use the previous lawyer when i purchase the house? Alternatively, can you recommend? I need someone who will ease the transaction for me - coordinate CPF and UOB for me.

Thanks for the info, I didn’t know that the deed can be stored at CPF.

[heyhoe]

ngl2010:

heyhoe:

Hi,


Appreciate some guidance here.

I'm thinking of redeeming my housing loan with UOB using our CPF fund. Should I use UOB panel list of lawyers or get my own lawyer? If I should get my own lawyer any recommendation?

Also, I understand that there might be a delay in CPF releasing the sum. How can I do so to realign the payment accordingly. I don't have so much cash to pay unless using CPF.

Thanks!

I'm just thinking... I maybe wrong... CPF gives 2.5% interest and UOB's housing loan interest is lower than 2.5%. Why redeem the loan?

Hi ngl2010,

My loan left less than $100K, and the rate is going up. Thus ,prefer to settle everything. Loan Free

[hquek]

Best is to call UOB up and enquire. Redemption of loan cannot suka suka - I assume you won’t incur early repayment penalty. Still, you will need to inform the bank in advance. Same goes for prepayment (ie not redemption), die die must inform the bank at least one month in advance.


I didn’t use the same lawyers as when I bought the flat but I was taught to use the same lawyers who can handle bank and CPF matters (save a bit of fees).

Feel free to call up the lawyers to check their rates. This is simple matter but the rates may differ.

I didn’t use CPF to keep the title deed, just stored at home. figured these days it’s more electronic than anything. Dun think anyone can just take my title deed and sell my flat aka those tv shows.

[heyhoe]

Hi hquek,


Thanks for your reply.

Yes, I did call UOB earlier. They told me that I’ve to engage a lawyer to give them 3 months notice.

Thus, like what you said I prefer to use the same laywer that can handle both bank and CPF matters. Any recommendation from you?

[hquek]

umm, I’ve never loaned from UOB before. better get their panel from them.


and yes, your case reminded me of mine. Less than $100K, no bank will entertain you and the interest rates just keep going up. I got fed up and redeemed my loan as fast as I could. Now very shiok feeling not to have to service the bank loan anymore. Jia you and join the crowd.

[cherrygal]

Yup good to be debt free. And once you settle this loan, you can think of buying a private property (2nd property) with 80-20 loan coz it will then be considered your "first" loan again. Many of my friends with HDB flats did that.

[cherrygal]

hquek:

I didn't use CPF to keep the title deed, just stored at home. figured these days it's more electronic than anything. Dun think anyone can just take my title deed and sell my flat aka those tv shows.

Haha yes, but my mom was afraid of fire, flood etc... so she preferred to put it in a safe deposit box. She said safe deposit box is better than CPF Board coz can put other important things like jewellery etc.

[heyhoe]

I just spoke to the lawyer and he advised me to do a partial redemption first.


He said just liaise with CPF and UOB and get forms filled up. This is suppose to help me save some cost. Thereafter, I can use the balance with cash to settle.

Just wondering, if this is the usual way?

Oh yeah, the charge for the lawyer fee will be about $1K. This seems much cheaper than when I first bought the place.