« Blood Circulation | Home | Blood Pressure & Hypotension »
Worried About Home Loans
By peace | August 11, 2007
This is my neighbourhood. I am staying in HDB (Housing and Development Board) flat. In the past, when you buy HDB flats, you need to take HDB home loans if you do not have enough money to pay up for the house. However, now the policy is not the same anymore. Some years back, probably in year 2001, all HDB home owners can choose to have a remortgages for their home. At that time, when this policy just started, many banks offer attractive interest rates for the first to third year of the mortgages or housing loans. By having a remortgages, converting the existing HDB housing loans to bank loans, home owners can actually saves a lot of money during the first three years. Since home owners had saved in this aspect, some of them were more willing to take up mortgage insurance so as to enjoy protection and peace of mind.
Interest rates are not stable over the years. There are ups and down, mostly ups. For working people, who are employees of companies, they got to enjoy CPF, which can be used to pay their housing loans. In another year or so, our CPF will soon be depleted. This is because neither my husband nor I are working. We have no CPF at all. It is going to be a major problem to come. I cannot imagine how to pay the housing loans. We have no mortgage insurance too.
Topics: All Posts, Money | No Comments »
