How To Check Your Housing Loan Balance

When managing your property, one of the crucial items is your mortgage. To ensure a smooth financial situation in the future, you need to know the status of your house loan.

Analyse the amount already paid and the outstanding amount yet to be paid. The amount should encompass principal, interests, and other charges.

The good thing is that you don’t need special knowledge to check your HDB outstanding loan balance. However, it can get confusing if you have multiple home loan transactions.

In this regard, we’ve given a complete guide on how to check housing loan balance in Singapore.

How To Check HDB Statement Of Account For Housing Loan

Your HDB loan statement should show you the transactions you made for your HDB housing loan for the previous year. It also shows the HDB outstanding loan for the previous year.

You can check your HDB statement of Account for a housing loan online via your Singpass. To do so, follow the steps below.

1. Login to the MyHDB portal and open your Statement of the Account page. You’ll need your Singpass here.
2. A page will display with a summary of your current account balance.
3. Press the “View Statement of Account” tab to display your account statement.
4. Configure the time interval you’ll be viewing your account statement. The maximum allowed period is one year at any time.

Note that the portal’s HDB loan balance is the amount for the unpaid principal only. The sum for the unpaid interest is not included. Look at the “Outstanding Installment” to view your arrears and late payment charges.

The portal not only shows you the outstanding balances, it also gives you an option to calculate your anticipated interest. The interest calculator is programmed to calculate interest for home loans you’re expected to pay.

Therefore, you can plan your finances well and opt for Partial Capital Repayment, whereby you prepay your loan. Another alternative is the redemption of your house loan, where you pay off all your outstanding amounts.

However, there are instances whereby the portal fails to show some of your past statements.

In this case, you should make an online application requesting the same.

Note that each request comes with a $15 administrative fee. Payments should be by credit card or debit card. Within 15 business days, you’ll receive your missing past statements.

How To Check Outstanding Housing Loan Statements

To check your HDB loan balance, open the detailed statement of the account. Doing so will show all transactions you’ve made for your home loan, including charges incurred.

Below is how to check the HDB loan balance.

Balance Brought Forward (Bal-BF)

The balance brought forward is the outstanding amount you owed when you requested the statement. HDB will charge you interest throughout the repayment period based on the outstanding amount. They may service your loan using your CPF.

Interest Charge (IP-2.60)

Interest Charge (IP-2.60) shows the interest HDB charges on your outstanding amount. The statement contains symbols such as IP and 2.60. In this case, IP stands for interest, while 2.60 stands for the interest rate, which is 2.6%. If the interest rate changes, the figure after “IP” also changes.

This is how HDB calculates their interest rates – they take your outstanding balance and compute it monthly. They then charge one-twelfth of the annual interest rate each month on the outstanding balance. Therefore, the interest payable also reduces as you reduce the outstanding balance.

Partial prepayments on your outstanding balance will also reduce monthly interest payments. The prepayment made will, however, have different codes depending on the means used to transfer the payments.

Monthly Installment Payment

HDB requires you to make monthly installment payments. The monthly installment you make on your account statement may appear in different codes depending on the transaction. So, you shouldn’t be worried about these codes.

How To Read Your Bank Mortgage Statement

Bank mortgage statements have several elements in common with HDB loan statements. No matter the bank or the type of statement (paper or online statements), the following elements should cover all you need to know about your bank mortgage statement.

Bank Mortgage Annual Statement (Paper Annual Statement)

• Total Disbursement

Total disbursement is the principal amount for your mortgage. This is how you should read this amount – the balance at the beginning of the year comes first, and the disbursement for the year comes second.

• Total Interest Charged

The total interest charged is the total interest amount you have paid on the outstanding principal for the year. This statement may contain the rates charged and the dates they were calculated. Never mind if you don’t have such.

• Total Monthly Repayment

The total monthly repayment is the total amount you have paid for the whole year, which is 12 months.

• Total Capital Repayments

The total capital repayment is the total amount received as prepayment for the mortgage.

• Others

Bank loans attract extra charges other than interest. These charges may include prepayment charges, admin fees, late payment fees, and conveyancing fees. If you incurred any of these charges the previous year, they will show in this section.

Online Bank Mortgage Statement

Online bank mortgage statements may contain more information than paper statements. For instance, viewing your statement online lets you get a detailed breakdown of how the bank arrived at the costs and outstanding balances.

The online bank mortgage statement shows the monthly installment you make and the interest charged on outstanding monthly balances.

Unlike HDB loans, bank mortgages have varying interest rates, which may fluctuate depending on your loan package and prevailing market rates for floating loans.

Reviewing Your Bank Mortgage Annual Statement

The best way to organise your finances is by reviewing your bank mortgage annual statement. Doing so will help you:

• Determine the amount you pay in interest monthly.
• Determine your anticipated payments subsequently in the remaining payment years.
• Determine the outstanding balances, allowing you to make better financial decisions.

When you review your bank mortgage annual statement, you will learn whether or not your mortgage deal is good.

A good mortgage deal lowers the interest you pay, bringing the mortgage cost down. However, if you realise that the mortgage deal isn’t good enough, it might be the perfect time to refinance it.

On the other hand, mortgage refinancing isn’t as simple as it may look. It has several additional charges that increase the total cost you’ll incur. Refinancing may not be ideal in some situations. For instance, refinancing your mortgage won’t be the best idea if you plan to sell your property the following year.

In summary, reviewing your bank mortgage annual statement gives you guidance and recommendations on the best practices to efficiently manage your home loan.

How This Helps You

The sole reason for checking your home loan balance and reviewing the annual statement is to better budget and manage your home loan.

Here are some ways doing this helps you.

• Foreclosure

Foreclosure is the practice of making a lump sum payment of the whole loan to close it. Note that this option needs you to have ready cash.

However, you shouldn’t confuse foreclosure with partial payment. The latter reduces the outstanding amount, thus reducing the monthly Equated Monthly Installment (EMI) amount. Before opting for foreclosure, reviewing your loan to identify the outstanding balance, tax benefits, interest rates, and other charges are prudent.

Find out the amount you’ll save if you opt for foreclosure. If the foreclosure brings the cost up, do not proceed.

• Top Up

Due to varying and unpredictable financial situations, making your home loan EMI payments may be challenging. If this is your case, you may consider taking a top-up loan from the same bank you took your home loan.

But you’ll need to review your home loan with your bank before reviewing your eligibility for a top-up loan. However, if your bank doesn’t offer a top-up loan, you may consider a home loan balance transfer to a bank that offers this loan.

• Balance transfer

With the dynamic nature of the financial market, interest rates may either increase or reduce. While the interest rate of your loan may increase, the interest rate of the same loan on another bank may plummet, providing better opportunities.

You may consider a home loan balance transfer if this is the case. However, you must review your home loan and submit all prerequisite documents, including your financial statements and income proof.

You’ll also need a No Objection Certificate from your previous bank and any other document the new bank will request.

Always Know How To Check Housing Loan Balance

You can view your balances using bank paper statements or online platforms. The latter provides more insight into your balance, including how the balance was calculated.

Short on funds? You can get a loan from banks, as well as licensed money lenders like 1AP Capital.

Contact us now or apply for a loan today.