A 2.9% hire purchase loan will for 9 year period work out to be around 5.45% p.a. (when converted to housing loan type calculation). Housing loan calculation aka amortised loan is a better representation for calculation and comparison purpose.

There is no FD in the market that gives 5.45%. The best bet is to put into some AS? i.e., fixed unit price collective investment scheme to earn some 7% dividend and profit the arbitrage.

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That is why, borrow at EIR 5.45% from a commercial bank i.e. @2.9% flat rate, then dump into ASB/ASW or whatchamacallit, get 7%... still profit from the arbitrage lor...

Eh sai boh?

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