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Thread: Paying Off Your Mortgage?

  1. #1
    Join Date
    May 2009
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    437

    Default Paying Off Your Mortgage?

    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?

  2. #2
    Join Date
    Apr 2009
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    923

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    Quote Originally Posted by kellogs
    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.

  3. #3
    Join Date
    Apr 2009
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    184

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    Quote Originally Posted by kellogs
    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)..

  4. #4
    Join Date
    Jun 2008
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    1,569

    Default

    I would probably pay some and invest the rest.
    No risk, No gain

  5. #5
    Join Date
    Dec 2008
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    3,721

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    Quote Originally Posted by patricia
    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/...one_sibor.html
    wah looks very complicated leh ...

  6. #6
    Join Date
    Feb 2010
    Posts
    9

    Default

    Citibank has the interest offset feature too, using your spare cash to reduce the loan interest.

  7. #7
    Join Date
    Feb 2009
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    5,837

    Default

    Quote Originally Posted by 7dwc
    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

  8. #8
    Join Date
    Apr 2009
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    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.

  9. #9
    Join Date
    Apr 2009
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    184

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    Quote Originally Posted by august
    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.

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