As most of us would know, HDB charges around 2.5% for their loans while we can find a lower rate by taking a bank loan despite the risk of fluctuation in interests. Here is a list of offers we can get from a bank loan. In most of the cases, the difference between both HDB loans and bank loans is about 1%+. Never forget that the extra 1% is paid monthly and it will compound for years. The main difference in terms of payment will be its down payment. You can choose to pay 10% of your HDB value using CPF if you are taking a HDB loan or split them into two 5%. In bank loan, you will have to pay 15% of your HDB value with CPF while paying 5% with cash. Below are two scenarios to look at:

1.    Couple A ...

...