Okay, I need a reality check from my fellow sinkies here. Is anyone else doing an absolute speedrun on their housing loan, or is everybody just blindly upgrading to condos the second they hit MOP?
For context, I got my flat a couple of years back. Ever since collecting the keys, my sole mission has been to clear this mortgage ASAP. I’m talking about a very strict timeline: pumping in extra cash every single year, dumping whatever year-end bonuses I get straight into the principal, with the ultimate goal of being 100% debt-free in about six years, right in my early 40s.
But honestly, sometimes I feel like I’m living in an alternate universe. Every time I sit down at the kopitiam with my colleagues or friends, the conversation is always about maximizing leverage. “Bro, why you so stupid pay off your HDB? CPF OA pays 2.5%, housing loan is cheap! Just stretch the tenure to 25 years, keep the cash, and invest in the market!” Or it’s the classic SG dream: MOP finish, sell the BTO, take maximum loan to upgrade to an EC or private condo, and basically be tied down to a massive mortgage until retirement age.
I get the math. I know mathematically, investing the extra cash might yield better returns than paying off a loan. But what about the psychological peace of mind? The idea of owing hundreds of thousands of dollars for the next two decades gives me actual anxiety. I just want to reach my early 40s, look at my flat, and know that even if I decide to quit my job, flip burgers, or take a long sabbatical, the roof over my head is fully paid for. Zero stress. Zero monthly deductions eating into my take-home pay.
Are there any other pragmatists out there aggressively paying down their principal? How do you balance the FOMO when everyone around you is living the high-leverage life, while you’re grinding just to see that outstanding balance drop? Curious to hear if the “debt-free early” route is actually worth the current sacrifice in Singapore.