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Cash Out Home Equity Loans or HDB Flat as Collateral? Nope.
I learnt something new today. That it is actually possible to take a cash out or credit facility on your home by refinancing it. People can use this additional leverage when they have largely paid up property and wish to make use of the lower home mortgage rates to pay off either existing loans or even invest in other instruments (e.g. REITs) which might give a higher returns. '
But also realised that one is also not allowed to take a credit loan out of your HDB flat. Basically:
"HDB flats can only be mortgaged to banks or financial institutions to finance the purchase. HDB owners are not allowed to use their HDB flat, which has been fully paid for, as collateral to raise credit facilities."
So unless you own a private property, you most probably cannot take a cash out home loan to tap on the low mortgage rates now.