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Hi,i'm using a bank loan to finance my HDB flat.Currently i'm in a bad situation cause i own multiple credit cards.Decided to cancel all the credit cards and decided to go for DRS.Will it affect the bank loan and what will happened if the bank knows that i'm going for DRS?
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5 Answers

Hi, it shouldn't affect your bank loan, but it is best to check with your lawyer or banker.

If you are currently planning to go on a property journey selling/buying/renting/investing, I can be of assistance. Do feel free to reach out to me for more queries and assistance.

Landon Chew
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Hi Farid,

As long as you keep up with the mortgage payment, it should not affect your bank loan.

Please feel free to contact me if you need any further assistance.

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Nick Tan
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Hi Isne,

It should not affect your bank loan but if you are looking to refinance your home loan to another bank, then this could be a problem.

I have been in the real estate business since 2009, with more than 14 years of experience serving the Singapore real estate market.

I am very active in the residential segment of Singapore real estate market, having transacted hundreds of deals from HDBs to private condominiums and landed properties in Singapore, and have handled many unique cases in sales and purchases as well as rental deals.

Over the years, I have also established a network reaching out to more than 9,400 expatriates, bringing my market presence to both in and outside of Singapore. This has created an additional exposure when I manage my client's portfolios, on top of the conventional on and offline platforms, where other estate agents are relying on. This has allowed me to consistently convert leads into results.

With an evolving market, where change is the only constant, I have also been investing in upgrading of my knowledge and skills sets to improve myself and meet the demands of current and future market.

We are offering our clients a complimentary first consultation without obligations (Absolutely FREE!). Schedule for your FREE session today!

Warmest regards,
Geryl Lim
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Here's a breakdown of how applying for Debt Repayment Scheme (DRS) might affect your HDB loan:

Potential Impact on HDB Loan:

Bank's Monitoring: Banks typically monitor their borrowers' credit health. While applying for DRS doesn't automatically disqualify you from your existing HDB loan, it might raise a red flag for the bank.
Possible Scenarios:

No Impact: If your current loan repayments are manageable, and your overall financial health is good (besides the credit card issue), the bank might not take any action on your existing HDB loan.
Increased Scrutiny: The bank might scrutinize your DRS application and financial situation more closely.
Here's what you can do:

Be Proactive: Contact your bank and explain your situation. Let them know you're taking steps to manage your debts by applying for DRS. Transparency can help.
Maintain Loan Repayments: Ensure you consistently meet your existing HDB loan repayments on time. This demonstrates your commitment to financial responsibility.
Improve Credit Health: Focus on managing your finances effectively while on DRS. This will help rebuild your creditworthiness in the long run.
Additional Considerations:

DRS Completion: After completing DRS, your credit report will reflect it for a period of time. This might affect your ability to obtain new loans in the near future.
Here are some resources that can help:

Insolvency Office Singapore (DRS): https://io.mlaw.gov.sg/debt-repayment-scheme/about-debt-repayment-scheme/
MoneySmart Singapore (HDB Loans): https://www.moneysmart.sg/home-loan/guide-ms
Remember, communication with your bank is key. By being proactive and demonstrating a commitment to responsible debt management, you can minimize the potential impact on your HDB loan.
IF you Need Further Help--->> like : Renting / Selling / Buying or Investing Read More
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