One of my biggest debt is my hdb flat, for which I took up a bank loan. Not because of the low bank interest rates but more because we are not eligible for a hdb loan.
Personally I would prefer to have a fixed interest rate loan for 25 years so I can have peace of mind, not having to worry about fluctuating interest rates. Along which comes fluctuating monthly instalment.
We took a 2 year fixed interest loan from UOB. Recently the 2 year is up, so I went hunting for refinancing packages.
I asked UOB for refinancing package but because there are upfront fees, I decided to refinance with other bank. That is where i chanced upon posb loan. They offer fixed interest rates for 4 years. So far this is the longest fixed rate tenure. I need not have to fret over the loan every 2 years. In the end, I refinanced my loan with POSB.
Another question that were burning in my mind were whether i should make partial repayment using my cpf OA monies. I pondered over this for quite some time.
Eventually I decided not, so that if i were to become jobless, my hdb loan could still be sustained using my cpf OA monies for a while (1-2 years).
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