Originally Posted by Unregistered

The advise of promptly paying down housing loans is not always good advise especially in today's low interest climate. There are such thing as good loans and bad loans. Housing loans are considered good loans and they are the only ones that come with the lowest interest rate. Banks give low interest rates because the collateral is the property the loan is taken for.

So let's say you have study loans, car loan, renovation loan and housing loan, your priority should be to pay off the ones with the highest interest rates. And after that, if you still have money left over, you should explore investing those money for higher returns than the housing loan rate.

In my case, I took a $1m loan for my condo and the interest was slightly above 1% pa. Instead of paring down the loan, I invested the money into blue chips and reits for 5% or more returns pa. Even my CPF OA gives 2.5%. Be nimble, not need to rush to pay off a good loan when you have one.