My comments:Stephen wrote:Hi Dennis,
There is one way to shorten the loan period is to pay bi-weekly instead of monthly.
Let's say I have an outstanding loan with HDB of $220,000 (2.6%/ Monthly payment $1027.65) and by paying monthly, my loan stretched to 24yrs. If I pay bi-weekly (2.6% / Weekly payment $513.26), it reduce to 21.5yrs. That is to say that I can shorten the loan period and at the same time I can save on interest of $8536.67.
The problem I face now is that CPF & HDB do not have Bi-weekly loan payment.
What is your advice on this issue?
Thanks.
Regards
Stephen
yes, in some other countries bi-weekly payment are allowed. However, in S'pore as you have found out, this is not an option available.
Of course you might know that my view is Housing Loan, espcially HDB concessionary rate loan of 2.6% NEED not be paid off in a hurry. You can read my posting "Why Hurry to pay off Housing Loan is unwise" for details.
For further discussion/clarification, please feel free to call us at 6737 8801 or email us at info@HousingLoanSG.com and myself or one of our other experienced colleagues would be pleased to assist.