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?

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

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

How old are your parents?

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

Thanks, but it seems that in this discussion link that you shared, there are still two sides of the coin in opinions; to repay the loan early or to stretch the loan repayment to maximum tenure.

But the second option seems to be more viable, allowing for backup cashflow and leverage.

Please give your opinions whether you agree with the example as illustrated below:-


For a 26 year HDB mortgage loan tenure:
Assuming,
100k HDB mortgage loan(2.6% p.a. interest) versus 100k OA balance(2.5% p.a.interest)

Therefore,
Interest p.a. difference = 2.6% - 2.5% = 0.1%

So,
Interest paid per annum = 0.1% x 100k = $100

Therefore,
Total interest paid for 26 years = 26 x $100 = $2,600

Therefore total actual interest lost to housing loan payment is only $2,600 for a 26 year loan.
Is this analysis correct?

No more inputs or ideas?

[/quote]

If the money you can earn by keeping those cash out of CPF is LESS than the interests generated, consider the following
1. After making full settlement, do you have at least 3-6 months of cash for your daily expenses?
2. What are the risks losing your job or having a significant pay cut in the next 2-3 years?
- If its high, how long would you need to find a replacement job?[/quote]

If the responses for both items 1 and 2 are negative, what then?

After using the HDB calculator, the calculated balance interest savings for the remaining 11 years of mortgage loan is only about $10k+, which amounts to about only $1k per annum. So, for just about $10k+ of interest savings, would it be better off paying the loan slowly for the next 11 years, rather than paying it off?