Pay up dude. There are more unfortunate people out there who needs it more than you.

No need to overthink le.

Just settle fully and have a peace of mind.

15% guaranteed discount, why not

1st, your 40,000 is reducing every month. So your return will get lesser and lesser. Let's say 2k X 10 years /2 = 10k

2nd, you need to pay 1% fixed interest, which is around 2% interest pe year. So to get 5% return, you will need to aim for 7% guaranteed return, which is hard.

3rd, 6k guaranteed discount Vs 10k (not guaranteed investment). If you settle the loan now, you can increase your DSR and have a peace of mind.

Not worth all the trouble imo, when you can have lump sum 15% discount.

Err if you want to continue paying, your only benefit from this budget is the direct debit discount (dunno last how long). Your intention to continue paying should not be affected before after this budget.

The 15% discount for lump sum is new, so people will have more incentive to settle the payment now. It's up to u whether u think you can beat the 15% discount now, previously there's no discount so you have more incentive to drag your payment.

U put in 40k for 15 years, assuming 6% return annually, you will only get 55.8k if you don't touch the funds for 15 years.

But you will need to continue serving your PTPTN every month. It's not like you can pay in one lump sum after 15 years. Actual return is only half of it, which is 27k.

And if your return is only 4%, you will only get 16k. 16k Vs 12 k savings, and you need to invest for 15 years to only break even. Why sweat it?



This post has been edited by victorian: Oct 30 2021, 03:30 PM