- Assuming an initial home loan of S$200,000, investing the amount into an STI ETF like the Nikko AM can produce returns nearly 10 times as much as the total interest paid on a HDB loan.
- Paying off the mortgage early - then running into cash flow issues - can cause you to pay more than S$20,000 worth of installments when you resort to taking out a personal loan.
- Paying off your mortgage early saves you on interest payments (more than 50% if you pay off a S$300,000 loan in 5 years, compared to 10 years).
Key Insights