After securing a loan, the next thing you have to worry about is its repayment. You may hit the ground running and start to pay your installments as agreed with the lender without checking your repayment progress.
But during your repayment journey, you may have incurred some charges, penalties, changed interest rates, etc. Also, on the lender’s end, there could be errors such as deposits not being reflected on your statement, double entries, and others.
This is why it is crucial for you to check housing loan balance and the items included in it regularly because it affects your credit standing in the long run.
In this article, we let you in on how to check housing loan balance for HDB and bank loans and explain what each of the items indicated there means.
This will help you monitor your loan repayment progress and plan your finances accordingly.
How To Check HDB Statement Of Account For Housing Loan
The process of checking your HDB statement of account for your housing loan is straightforward:
- Start by getting onto your HDB portal using your Singpass and opening the Statement of Account page. Using this link should get you to your loan summary directly, through your Singpass.
- Tap or click on “View Statement of Account”. This statement should show all the details of your loan and its repayment.
After this, set the period within which you will see the statement, say yearly. You can then periodically check your progress until you finish paying the loan.
You might also want to know the interest you’re expected to repay during the loan tenure. To check this, use the interest calculator, which calculates the total interest you should expect to pay on your outstanding loan balance.
Click on Partial Capital Repayment or Redemption of Housing Loan, which refers to paying off the remaining housing loan. You will see the principal amount you would have to pay, as well as the total interest accrued.
Lastly, there’s a section that allows you to change your payment methods. You may choose either CPF or GIRO. Input your Singpass for CPF, and HDB will draw from your CPF savings.
How To Check Your Outstanding Housing Loan Statement
Here’s how to check your outstanding housing loan statement for HDB and bank loans.
HDB Loan Statement
There are two methods you can use to check the HDB loan statement:
1. Log In To Your HDB Profile
Using your Singpass, log in to your profile on the HDB website. Go to My Flat and proceed to Purchased Flat, then to Financial Information. The statement should be displayed.
2. Visit The HDB Branch That Serves You
Request a loan statement from the HDB branch designated to manage your flat. But remember that you must first make an appointment. So get on the e-Appointment portal to book an appointment.
Bank Loan Statement
Get onto the bank’s official website and log in to your profile. Most banks have a “Loans” section from which you can view your loan details. You may view the loan statement online or download it to your computer.
The second option is to visit the bank branch and get the customer service department to help you get a copy of your loan statement.
How To Read Your Bank Mortgage Statement
After opening the detailed HDB outstanding loan statement, you will see the various transactions and charges that have transpired during the period you requested the payment.
Some of the key elements of a HDB statement of account are:
This is the interest rate imposed on your outstanding HDB loan balance. It is labelled IP-2.60, where IP stands for the interest rate and 2.60 is the prevailing interest rate of 2.6%.
If the interest charged is changed, which is unlikely to happen, this figure would also change.
Note that the interest rate is imposed on your outstanding balance each month. So as your due balance goes down every month as you make the monthly payments, the interest charged also decreases even if the interest rate remains constant.
Something else to note is that HDB does not charge penalties for early repayment.
This means you can reduce the interest incurred by increasing your deposits every time you have some money to do so.
Balance Brought Forward
The balance brought forward is the outstanding balance at the start of the period for which the statement applies. It is the remaining unpaid principal amount without the interest.
Any updated monthly installments will be labelled “Outstanding Installment”, and any charges for late payment will be reflected there as well.
If you have been consistently paying your loan, this section should be empty.
Note that although HDB loan terms are lenient and forgiving, failure to keep up with your payments may still result in unnecessary costs in the form of penalty fees.
Monthly Installment Payment
Besides the interest charged, your monthly repayments are also crucial.
The repayments are indicated using different codes depending on your mode of payment such as CPF or cash deductions.
So be sure to check your CPF balance statement carefully.
Reviewing Your Bank Mortgage Annual Statement
When you know how to check housing loan balance, examining your bank mortgage statement should not be an issue because its components are similar to that of a HDB statement.
Also, the details in the reports do not vary from one bank to another, although their format may differ.
Some details that the bank statement will include are:
Total Interest Charged
This refers to the amount you have paid as interest during the specified period of your outstanding loan balance.
Also, since banks revise their rates, this section indicates the details of the previous rates, including when they were employed.
The total disbursement, as well as the outstanding loan amount, are among the most conspicuous items on your bank loan statement.
It is labelled as “Total disbursement” and is the principal loan amount from your mortgage loan. “Disbursement” will refer to the total amount disbursed in a year.
So the statement will start with the loan balance at the beginning of the year and add to the amount disbursed during the year.
This refers to the money you paid out to the bank during the year, summed up over the last 12 years of repayment.
Total Capital Repayment
If you pre-paid your loan at any time during the year, the excess amount would be indicated, in its summation, here.
Any other expenses incurred in charges and fees throughout the previous year are reflected here. Examples include late payment fees, admin fees, prepayment charges, and conveyancing fees.
Kindly note that the online version of your bank mortgage statement may contain a more detailed breakdown of the various loan elements.
For example, you will see a list of all monthly installment repayments and the interest charged each month, which the downloaded statement version will not have.
It Helps To Know How To Check Housing Loan Balance
Viewing your loan statement and knowing how to check housing loan balance is crucial because it helps you plan your financial future.
You not only find out the amount you are paying in interest each month, but also get to calculate the amount you should expect to pay in the following year. You also know how much of the principal amount you still owe.
With the data collected, you can examine your loan to see if it’s manageable or the best deal available in your current financial situation.
If it isn’t, you can then seek a better mortgage deal to reduce your interest costs and free up your cashflow.
But even if those options are unavailable, reviewing and reflecting on your loan progress is good practice.
If you feel you could use some help with managing your home loan, enlist the help of the loan experts at U Credit.
We will offer you a housing loan or help you refinance your current expensive loan at some of the lowest rates across the island. We have a variety of loan packages that should meet your financial needs satisfactorily.
Frequently Asked Questions
Can I Take A Second HDB Loan?
Yes, although there are conditions attached. The essential occupier and the loan borrowers must have used up to 50% of the cash proceeds from the sale of the HDB previously owned.
You can deposit up to $20,000 in your CPF Ordinary Account and use the remaining balance to purchase the new flat.
How Many HDB Loans Can I Have?
If you’re seeking another loan after already taking up two HDB home loans, it’s best to approach licensed money lenders and banks in Singapore for financing.
Is It Better To Pay Off My HDB Mortgage Loan Early?
The earlier you pay off your HDB mortgage, the less interest you pay. You may opt to pay off the HDB loan and take up another loan elsewhere.
For example, since a HDB loan has a constant 2.6% interest rate and a bank could offer the same at 1.6%, the bank loan is cheaper, provided its rate remains constant.
How Can I Pay Off My Home Loan Faster?
Here are some valuable tips:
- Choose a lender that offers a low interest rate, like U Credit. Its low interest rate results in affordable monthly installments, which eases the stress of repayment.
- Ensure that your lender allows frequent payments above your stipulated monthly installments. Making prepayments when you have money will reduce the principal amount and the interest accrued.
- Take a home loan that is easy to repay and that you can afford because exceeding your ability to repay the loan will bring financial strain. So get a realistic repayment plan and the right loan amount for your needs.
- Make a sizeable downpayment. If you save for longer and make a large deposit as a downpayment, you instantly lower the loan amount you would need to borrow and the interest you need to pay.
- Get a short-term loan. A short-tenure home loan has relatively high monthly installment repayments, but the interest accrued is smaller than a long-term loan. You get to settle your loan early.
- Seek to transfer your balance. If you’re seeking better repayment terms, you can get a home loan balance transfer and switch to a lender with better terms. You may get lower interest rates, a shorter tenure, and other favourable terms that could make your repayment easier.