Written on January 22, 2010 at 8:20 am by

Refinancing of HDB loan?

Filed under Singapore Home Loan 2 comments

Heard that by refinancing, i can actually get some extra cash for any purposes. How does refinancing work? I own a HDB and the loan is from HDB. Please help.

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  1. scootnoodles says:
    January 22, 2010 at 8:55 am

    Refinancing

    Existing HDB mortgagors can choose to transfer their remaining mortgages to the banks if they wish to refinance their loans with the banks.

    Mortgagors who refinanced their existing HDB loan with the bank will not be allowed to refinance that loan with HDB subsequently.

    SPR lessees who have refinanced their HDB loan with the bank (as well as those SPR lessees who had taken bank loans upfront for the purchase of their flat) also cannot refinance that bank loan with HDB after they have obtained Singapore Citizenship even if they are eligible for an HDB concessionary loan. Instead, they can enjoy the HDB concessionary loan when they next purchase an HDB flat, subject to their loan eligibility at the point of application.

  2. Tan D says:
    January 22, 2010 at 10:15 am

    This is to transfer your remaining mortgages from HDB to the banks. The banks normally give cash rebate to attract people, but it’s actually add on to your existing loan.

    Current HDB mortgages is only 2.6% per annumm. Whereas for Banks, they may offend you a lower interest in the first year, but after 2nd year, they may increase up to 5% per annumm.

    If you think of doing so, I quoted a example from one of my relative who take up a Bank loan.

    He bought a 4 rooms flat by taking up Bank loan. First year the interest rate was less than 2%. Monthly instalment is about S$750. One year later, the Bank increased the interest rate to 5%, now he is paying about S$930 per month. Ended he have to come out cash every month for the mortgages due to the shortage of CPF fund.

    Banks are making hell lot of money over this mortgages loan, and the Government are encouraging them to do such thing. I believe you won’t be so stupid enough to believe this worth.