Can i refinance hdb

You will not be allowed to refinance the loan with an HDB housing loan even if you subsequently obtain Singapore Citizenship and may eligible for one. You could apply for an HDB housing loan for your next flat purchase if you meet the prevailing eligibility conditions. Flat owners who have taken a housing loan from an FI and are facing difficulties in repaying their loan instalments are advised to consider the following options:.

Approach the FI early to work out viable repayment options to resolve mortgage arrears. Refinance the loan with another FI offering a more manageable interest rate. In addition, there may be other charges such as bank processing fees, or valuation costs. You need to work out whether the eventual savings justify this expense.

However, some home owners use cash instead of CPF e. You may feel more of a pinch if you are paying a couple of hundred a month out of pocket. A difference of a few hundred dollars a month can mean more to these owners as it directly affects their wallet.

On the other hand, home owners who fully service their loan with CPF may not feel the difference. This impacts your decision to refinance. Some home owners who rent out their flats are also inclined toward cheaper bank loans, as it helps to push up their net rental yield. Most banks impose penalties if you try to pay off your home loan early; the typical penalty is 1. This can be an added cost when you want to sell.

Different loan packages have varied terms and conditions. HDB loans, on the other hand, have no such penalties. You can pay off the entirety of your HDB loan at one go if you like if you strike 4D or something. That means no more interest repayments at all. HDB might be lenient in events such as medical emergencies, job loss, and so forth on a case-by-case basis.

The chief difference is that, if you use an HDB loan, the minimum down payment is 10 per cent, which can be fully paid with CPF. If you use a bank loan, the minimum down payment is 25 per cent five per cent in cash, and 20 per cent from any combination of cash or CPF. Interest rates are at a historic low, and will be for the foreseeable future as the world recovers from Covid This article was first published in Stackedhomes.

Should I refinance from an HDB loan to a bank loan? Ryan J Ong. Nov 09, Read Also.