- Enjoy interest rates lower than or capped at 2.5% p.a. for 10 years
- Guaranteed lower interest rates compared to HDB concessionary loan
- No prepayment fee
Specifically, the loan pricing can be illustrated by the table below.
Loan Tenor | POSB HDB Loan |
First 10 years | 3M SIBOR + 1.38% |
(capped at CPF OA rate) | |
11th year onwards | 3M SIBOR + 1.48% |
At the time of the launch, the 3M SIBOR was 0.38%. Assuming no change to the 3M SIBOR for 10 years, the POSB HDB Loan mortage rate will be 1.76% p.a. In contrast, HDB Singapore offers a fixed rate concessionary loan at 2.6% p.a.
My analysis:-
Pros
- Mortgage loan interest savings within the (Read more...)