When you are providing an HDB mortgage for your flat, the pace might have been dos.6% as long as I could think about. Its labelled so you’re able to CPF 2.5% rate of interest. The stability of your HDB mortgage rate may sound a, but it’s currently a lot more more than personal bank loans. You to definitely lender I’m sure provides five years within step one.4% fixed rates.

This will be somewhat unlike a number of other nations, where rates of interest are greater. Therefore, there might be greater necessity when you look at the rushing to pay off new home loan, because of the high rate.

While it’s constantly advisable that you reduce attention costs, the relatively all the way down rate adds a different sort of dimension compared to that. It might, as an example, end up being good for take care of proper income, or enjoys dollars to blow elsewhere as well as all of our assets, as opposed to providing full priority to financial repayment.

• Are there prepayment punishment? Continue reading « Drawbacks out of Settling Home loan Easily »