Total payment after 30 years = $504,428.04.
Interest paid after 30 years = $154,428.04
Assuming a bank loan instead to be paid back in full in 30 years at the following rates : 1.2% first year, 1.45% second year and 1.95% thereafter. (Based on 3-month Sibor + 0.5%, 3-month Sibor + 0.75% and 3-month Sibor + 1.25% from a local bank).
Total payment after 30 years = $457,747.21
Interest paid after 30 years = $107,747.21
By taking a HDB loan, the customer actually pays $46,681 in interest more over 30 years.
(I have excluded the miscellaneous cost, such as legal fees e.t.c, focusing on interest only. )
Reasons for taking a HDB loan is ...
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