Get a better deal from NTUC Income on your HDB loan

Dear Mr Tan

I took a loan of $225,000 on my HDB flat and pay a fixed rate of interest of $9,500 a year for the first three years. I have to deposit $100,000 in a current linked account with the bank to earn a total interest of $10,500 for the first three years.

Can you recommend a better package for me from NTUC Income?

EG

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Dear EG

It seems that you are paying interest at 4.2% on your HDB loan and you get interest at 3.5% on your current linked account.

Your net borrowing is $125,000 (i.e $225,000 less $100,000) and you pay an interest of $6,000 (ie $9,500 less $3,500) on it. Your effective interest rate appears to be 4.8%, fixed for 3 years.

NTUC Income charges a fixed interest rate of 4.15% for 5 years. See:

HDB Loan

Tan Kin Lian