How I maximise cash flow from BTO purchase - HDB loan & bank loan

For BTO buyer who want to pay lower downpayment (10%) while enjoy lower bank interest rate vs HDB loan (2.6%).

This is what you can do:

1. Take HDB loan - pay 10% downpayment

2. Convert to bank loan after few months - get lower interest rate.

I refinance my HDB loan with DSB 5-Year Fixed Rate package which allow me to have 1.8% fixed rate for 5 years (stability) while still lower interest charges as compared to HDB loan. 

With this - I manage to save:

1. ~ $100k downpayment (CPF/ cash) as my cash flow to be used for future loan installment (vs bank loan)

2. ~$300+ monthly interest charges for first few years.

Refer to scenario 3:

Benefits

- Lower downpayment $68k vs $170k if take bank loan directly.

- Lower interest 1.8% (after refinancing) as compared to HDB loan.

Condition: 

- Bank revaluation with higher value vs BTO price.