Well, if the money is just sitting in the bank earning us super super low interest rate, it is definitely better to pay off the housing loan earlier as it will save us interest.

However, if you are able to invest the money that earn you decent interest rate, (2.5% from CPF ordinary account, risk free), you should invest it and stretch out the payment period. As the amount that you are going to pay of earlier is able to make you more money than the interest that you can save.

This blog has more details and an excel sheet that can be used to calculate the above mentioned.

http://baselearning.blogspot.com/2008/10/cpf-housing-loan-early-repayment.html

The market crashed but bounced back. With my income and CPF monthly contribution, there is insufficient monthly CPF to pay the monthly bank mortgage instalment. So I have to top up using my own cash. I don’t live in the condo any more. I cannot afford to. Part of the rent I earn goes to pay the monthly bank mortgage instalment.

Do I have any advice? Get HDB rather than private property. Purchase are more affordable place than one where you find you will be stretched.

Once upon a time the CPFB had something called the Govt Bridging Loan to help those like me. (1) the criteria was so strict, I did not qualify (2) they have since discontinued the scheme.

My view: the government should tighten the RPS and give more advice/warnings to those seeking to use the RPS, particularly for private property and for first-time property buyers.

My other view is that government should help those like me who have had difficulties. They are not keen on mortgage interest relief, so I do not know what else. Maybe reintroduce the Govt Bridging Loan with more relaxed criteria, or maybe they would allow more generous use of Special Account funds to be used towards monthly mortgage payments.

Appears to me that the scheme is clearly intended to help lower-income families become homeowners. It is afterall ADDITIONAL grant. Basic grants are already available to help young Singaporeans like yourself buy a flat. I think it makes sense to have the 2 year working requirement to filter out families whose income is likely to surpass the 4k requirement just after 2 years of working. If we are going to be dishing out additional subsidies, we better be giving to those who truly need it.

Thank you for your well-wishes. Hope to catch up with you in school. I have more updates about the wedding on my wedding blog. You might want to check it out.

If that hypothetical situation is true, the government will just encourage more immigration!

Anyhow, I’m not really complaining, just that I think the government can either 1) make the policy clearer or 2) make the policy more flexible. If people are genuinely interested in starting families, it should make sense to give a little extra push to the boat until it can catch enough wind in the sails to travel by itself. Actually, I think that many more graduate couples would be more willing to start families early if there’s some help in the early days of their careers, especially the more practical minded couples. People like me who marry for love (and maybe ideals) probably wouldn’t be affected but I think I’m in the minority (or I would like to think I am).