Hi sifus,

A bit of dilema here. Im targetting house around 800k range and most probably will place booking by year end or will buy subsales.

Say for eg, i readily have x amount of money which more or less can contribute to 20k to 24k dividen a year which is about 2k per month.

Which option would you prefer.

Option A : go for 100% loan, use dividen and top up monthly payment via salary. Advantage : savings still there. Cons : if dividen reduced, then need to top up more from salary.

Option B : dump the money for reduced monthly payment. Advantage : reduce monthly payment. Cons : no more savings.


Prefer option A as if anything happen still there is money.

Lets here from sifus.

Thanks for taking time to advice.

Cash is king, let opt for fully flexi loan with max margin and park your fund to offset the interest….anything unfavorable down the road you can have the fund to manage the situation better

No right or wrong .....is all about YOU.

Some borrower prefer to settle the loan ahead and may take epf to do it. To some, is not wise because current epf pays higher interest than bank charging interest.

Reasons may varies but few may get 'tired' paying instalment monthly.

Similar, why do some invest in FDs and not others like klse.

I buy properties in my spouse and children's names and I stand as loan guarantor...but that is me lah.

This post has been edited by mini orchard: Mar 2 2022, 10:48 AM

Go house loan calculator. See how much u can save in interest if u borrow less.

Compare that amount vs the returns u expecting from that x amount. If returns is more, keep x amount.

If can't, don't commit all to house. Keep 3 months salary amount for rainy day.

your dividend income is still appreciating?
assuming all else equals, then it's a simple interest rate versus the dividend return rate.

having said that, would recommend still keeping some liquid equity no matter what and don't dump all into the loan.

Simple math, check if dividend appreciation > interest rate of loan, if yes then get 100% full flexi loan and make use of flexi's current account to keep cash n reduce interest at same time.

One thing to note, if you get higher loan margin now, it means application for future credit/loan will be affected (because DSR/liabilities on CCRIS will be higher). Bear that in mind going forward.

20-24k dividend per annum. Assuming 5% rate of dividend yield , your stock value should be somewhere around 400k~480K. The amount is quite significant.

If you are investor savvy type, maintain it in the stock. You can always have the option the do early settlement payment in the future. The liquidity = opportunity. When conditions suddenly turn favorable, you can't wait to apply to get the money out from your loan account, the opportunity will just slip pass you.

If you are not investor savvy type & don't know what to do with the money, hence put it into the loan.

Thanks for taking time to reply to my post. Appreciate all the advice given.

Will carefully plan and full flexi loan is interesting.

As long as your emergency fund is not impacted, then always try to settle the loan asap. After all, u are saving the interest, which is a lot.

Actually going to take staff loan which is about less than 2% but im already 42. So not much left to save for old age.

Also i have a property currently which is more or less the market value is around 400k to 450k.

Gonna sell it if the future new house is ready so will have more savings in future and for reno, id works at future new house.

This post has been edited by Nivan: Mar 2 2022, 08:01 PM

So Rimbayu or TA?

End of year 25.7 comes out with Levane. Starting at 750k

not much luck with this one liao

This will be my very last option. If this failed, then just stay with current house. No point to see see look look already. Tiring. Haha

If current house still can stay, keep the free cash flow and enjoy life la.
Go holiday, buy some present pamper ownself and familly member.
Who knows what will happen as time goes by.

Of course can stay but it is worrying when flood as nearby taman will be flooded

A