<![CDATA[Settlement of HDB loan]]>

hquek:
unlikely. they usually only refinance if it's more than 100k. at least that was the answer I got couple of years back, not sure if this has changed.

Maybe they are more hungry now.

]]>https://forum.kiasuparents.com/topic/75812/settlement-of-hdb-loanRSS for NodeFri, 08 May 2026 06:12:08 GMTMon, 07 Nov 2016 01:36:19 GMT60<![CDATA[Reply to Settlement of HDB loan on Sun, 06 Nov 2016 13:53:07 GMT]]>

superduper:
If you have a balance of say 80k of hdb mortgage loan left to pay, at an interest rate of 2.6%, will any banks allow for refinancing the loan at a better interest rate?

unlikely. they usually only refinance if it's more than 100k. at least that was the answer I got couple of years back, not sure if this has changed.

]]>https://forum.kiasuparents.com/post/1731107https://forum.kiasuparents.com/post/1731107Sun, 06 Nov 2016 13:53:07 GMT<![CDATA[Reply to Settlement of HDB loan on Sun, 06 Nov 2016 11:45:13 GMT]]>If you have a balance of say 80k of hdb mortgage loan left to pay, at an interest rate of 2.6%, will any banks allow for refinancing the loan at a better interest rate?

]]>https://forum.kiasuparents.com/post/1731089https://forum.kiasuparents.com/post/1731089Sun, 06 Nov 2016 11:45:13 GMT<![CDATA[Reply to Settlement of HDB loan on Thu, 27 Oct 2016 08:55:52 GMT]]>

Yngmng:
MrsKiasu:

can go for a basic degree (sponsored by parents) first thereafter go upgrade (pay ownself) after having enough own savings?


sell the place where to stay? remortgage or sell then buy with new loan?

Agree. If cannot make it to local Uni, then go poly. Then, upgrade after accumulating enough savings.

Yes! can always take loan and further your studies after poly. Part time degree is not a bad option.. at least you gained working exp.. and that's an advantage.

]]>https://forum.kiasuparents.com/post/1728989https://forum.kiasuparents.com/post/1728989Thu, 27 Oct 2016 08:55:52 GMT<![CDATA[Reply to Settlement of HDB loan on Tue, 25 Oct 2016 00:22:00 GMT]]>

MrsKiasu:
can go for a basic degree (sponsored by parents) first thereafter go upgrade (pay ownself) after having enough own savings?


sell the place where to stay? remortgage or sell then buy with new loan?
Agree. If cannot make it to local Uni, then go poly. Then, upgrade after accumulating enough savings.

]]>https://forum.kiasuparents.com/post/1728319https://forum.kiasuparents.com/post/1728319Tue, 25 Oct 2016 00:22:00 GMT<![CDATA[Reply to Settlement of HDB loan on Tue, 25 Oct 2016 00:17:36 GMT]]>can go for a basic degree (sponsored by parents) first thereafter go upgrade (pay ownself) after having enough own savings?


sell the place where to stay? remortgage or sell then buy with new loan?

]]>https://forum.kiasuparents.com/post/1728318https://forum.kiasuparents.com/post/1728318Tue, 25 Oct 2016 00:17:36 GMT<![CDATA[Reply to Settlement of HDB loan on Tue, 25 Oct 2016 00:17:32 GMT]]>What if the child finds that the grass is greener overseas and decides not to come back?


The poor parents will then be left with nothing and the society has to take of these old folks at tax payers' expense. :mad: A family problem would then become a social problem?

]]>https://forum.kiasuparents.com/post/1728317https://forum.kiasuparents.com/post/1728317Tue, 25 Oct 2016 00:17:32 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 23:57:50 GMT]]>

superduper:
What about for those who could only wipe out totally whatever they have in order to realise this dream?

In that case, should go

1) scholarship if cannot
2) loan from parent's CPF, if not enough
3) bank to get study loan

]]>https://forum.kiasuparents.com/post/1728310https://forum.kiasuparents.com/post/1728310Mon, 24 Oct 2016 23:57:50 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 23:37:52 GMT]]>

superduper:
What about for those who could only wipe out totally whatever they have in order to realise this dream?

I think it would place a huge burden on the child! Would the child want the parents to do this?If I were the child, I would try to find an alternative route or even give up the idea. I think that if the parents are willing to cut back, downgrade etc, but still have something to fall back on, it can be considered, but I would think the \"wipe out totally\" scenario would be unwise. Unfortunate things do happen - the child may not complete the course, fall sick, some accident may happen to the child or parents...

]]>https://forum.kiasuparents.com/post/1728307https://forum.kiasuparents.com/post/1728307Mon, 24 Oct 2016 23:37:52 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 15:12:13 GMT]]>What about for those who could only wipe out totally whatever they have in order to realise this dream?

]]>https://forum.kiasuparents.com/post/1728280https://forum.kiasuparents.com/post/1728280Mon, 24 Oct 2016 15:12:13 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 14:47:34 GMT]]>

superduper:
Would you sell your house for your kid to attend university overseas?

I guess you mean downgrade to a smaller home? Yes I would.

However, I am planning for both her education as well as my retirement. I don't foresee the need to sell or downgrade my home when the time comes...hopefully.

]]>https://forum.kiasuparents.com/post/1728273https://forum.kiasuparents.com/post/1728273Mon, 24 Oct 2016 14:47:34 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 12:26:40 GMT]]>

zbear:
superduper:

Would you sell your house for your kid to attend university overseas?



Sell house and stay where har?

Some squat in their own parents' place lor.

]]>https://forum.kiasuparents.com/post/1728255https://forum.kiasuparents.com/post/1728255Mon, 24 Oct 2016 12:26:40 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 11:46:14 GMT]]>

superduper:
Would you sell your house for your kid to attend university overseas?

Confirm NO
When am old and likely no longer in the pink of health, my home is my only place to rest. Imagine no home ...

]]>https://forum.kiasuparents.com/post/1728243https://forum.kiasuparents.com/post/1728243Mon, 24 Oct 2016 11:46:14 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 09:51:23 GMT]]>If that is the only one roof I would think it is too risky. Stressful to all. I think I wont do it. But if more than 1 roof then different story.

]]>https://forum.kiasuparents.com/post/1728216https://forum.kiasuparents.com/post/1728216Mon, 24 Oct 2016 09:51:23 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 09:46:51 GMT]]>

superduper:
Would you sell your house for your kid to attend university overseas?


Sell house and stay where har?

]]>https://forum.kiasuparents.com/post/1728214https://forum.kiasuparents.com/post/1728214Mon, 24 Oct 2016 09:46:51 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 09:24:27 GMT]]>Would you sell your house for your kid to attend university overseas?

]]>https://forum.kiasuparents.com/post/1728204https://forum.kiasuparents.com/post/1728204Mon, 24 Oct 2016 09:24:27 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 07:47:06 GMT]]>80plus…although it doesn’t matter how old they are.

]]>https://forum.kiasuparents.com/post/1728174https://forum.kiasuparents.com/post/1728174Mon, 24 Oct 2016 07:47:06 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 07:36:23 GMT]]>How old are your parents?

]]>https://forum.kiasuparents.com/post/1728166https://forum.kiasuparents.com/post/1728166Mon, 24 Oct 2016 07:36:23 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 06:56:12 GMT]]>

superduper:
So, moral of the story is, no need to clear the HDB loan, it's a good debt.

It's only true if one is using CPF to service the loan.

For my parents, who are no longer working and using CASH to pay for their HDB. There is no point to put in FD to earn 1.6% and to pay 2.6% in interest.

]]>https://forum.kiasuparents.com/post/1728158https://forum.kiasuparents.com/post/1728158Mon, 24 Oct 2016 06:56:12 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 06:48:57 GMT]]>So, moral of the story is, no need to clear the HDB loan, it’s a good debt.

]]>https://forum.kiasuparents.com/post/1728156https://forum.kiasuparents.com/post/1728156Mon, 24 Oct 2016 06:48:57 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 06:02:00 GMT]]>

hquek:
Thanks headache2010. I never used to think too much - some things in life, if I have to take that loan, I only compare numbers and then plunge in - didn't think too much about the mechanics behind it.

You are welcome 🙂

Yes, it's common but one will be better off if we are aware of the differences.
There is no need to rush to pay off Housing loan unless one wants to buy a 2nd property under the current cooling measure (to get a higher loan).

You might want to take note also under car loan, even if you redeem it earlier (like selling your car), you will still have to pay part of the \"un-utilized\" interest under Rule78...... using above example, $14K interest payable over 7years. after 3.5years, you would have paid $7K in interest..... but when you redeem the loan, it will be $50K (principal unpaid) + part of $7K (under rule 78).. you will need to pay $5XK and not just $50K.

Unlike Housing loan, where you are no longer under lock in period, you just need to pay for the unpaid principal amount.

]]>https://forum.kiasuparents.com/post/1728145https://forum.kiasuparents.com/post/1728145Mon, 24 Oct 2016 06:02:00 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 05:38:36 GMT]]>Thanks headache2010. I never used to think too much - some things in life, if I have to take that loan, I only compare numbers and then plunge in - didn’t think too much about the mechanics behind it.

]]>https://forum.kiasuparents.com/post/1728138https://forum.kiasuparents.com/post/1728138Mon, 24 Oct 2016 05:38:36 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 04:14:48 GMT]]>

hquek:

Thanks for clarification...you are right, the car nominal and effective rate is very different and that was what I recalled. So for home loans, what you see is what you get?
Indeed.... what you see if what you get for home loan. 😄

]]>https://forum.kiasuparents.com/post/1728117https://forum.kiasuparents.com/post/1728117Mon, 24 Oct 2016 04:14:48 GMT<![CDATA[Reply to Settlement of HDB loan on Mon, 24 Oct 2016 03:36:45 GMT]]>

Headache2010:
hquek:

I never did find out the answer so be glad if pp can enlighten me. The little I know says that a loan of say 2% translates into effective interest rate of maybe 4% (principle of daily res or something). does cpf savings earn the same way too? if not, then hdb loan borrowers will not be spending extra 0.1%, but it would be more, right?


please correct me if I am wrong.

From my example above..... the 2% that you mentioned is car loan and not home loan. And the effective rate is almost doubled.
Home loan etc, effective rate is the norm..... daily res or monthly res is just when the calculation of interest is done, nothing to do if it a fixed/flat rate or effective rate.

Thanks for clarification...you are right, the car nominal and effective rate is very different and that was what I recalled. So for home loans, what you see is what you get?

]]>https://forum.kiasuparents.com/post/1728110https://forum.kiasuparents.com/post/1728110Mon, 24 Oct 2016 03:36:45 GMT