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kellogs
04-03-10, 14:27
Lets say you have a loan of 1M SGD and you have the cash 1M SGD

Would you pay off the mortgage?
Pay 500K and use the other 500K to invest?

Condorich
04-03-10, 14:45
Lets say you have a loan of 1M SGD and you have the cash 1M SGD

Would you pay off the mortgage?
Pay 500K and use the other 500K to invest?


These options only.
1. Pay up in full
2. Pay somewhere in between full and zero... mid point is half
3. Pay zero.

First option, pay in full, sleep without worries.. if the project is completed, just rent out and live on rental

Second option, pay half... good idea, lower loan and lower risk or loan top up calls. Have to invest the money wisely and not lose the principle. I would select this option. In fact, I would keep half as contingency funds and use half to buy another property at a loan ratio of about 50%.

Last option, you are a fool.

patricia
04-03-10, 16:01
Lets say you have a loan of 1M SGD and you have the cash 1M SGD

Would you pay off the mortgage?
Pay 500K and use the other 500K to invest?
Get maximum loan from SC ( I have no interest in SC) and then deposit cash into their MorgateOne account which give same interest rate as the loan interest ( condition applies)..

focus
04-03-10, 21:22
I would probably pay some and invest the rest.
No risk, No gain :)

august
04-03-10, 22:24
Get maximum loan from SC ( I have no interest in SC) and then deposit cash into their MorgateOne account which give same interest rate as the loan interest ( condition applies)..

http://www.standardchartered.com.sg/mortgages/mortgageone_sibor.html
wah looks very complicated leh ...

7dwc
04-03-10, 22:41
Citibank has the interest offset feature too, using your spare cash to reduce the loan interest.

proud owner
04-03-10, 23:18
Citibank has the interest offset feature too, using your spare cash to reduce the loan interest.


if one is a Citigold member ... lagi good rates ...

and Citigold does not mean citibank gold credit card

Regulators
05-03-10, 10:15
i would pay in full if can afford it. open an account and just let the rental income flow in knowing u dont need to pay any mortgage (makes you feel really good). At the same time, start advertising your unit to sell at a hefty profit (of course try to get a bank able to match) whilst still renting out ur place, either way whether u sell or keep ur place, money is always coming in.

patricia
05-03-10, 13:54
http://www.standardchartered.com.sg/mortgages/mortgageone_sibor.html
wah looks very complicated leh ...
Seem complicated when you look at it for first time. Go to the bank and ask and then do a little thinking, it is actualy quite simple. 2/3 of your saving will earn same interest as your loan ( i.e zero interest if your saving amount is equal to 3/2* loan amount). 1/3 of it will earn 0.5%. QED.