How I reduce my POSB fixed 1.4% home loan to 0.85% via POSB cashback bonus

 

I refinanced my HDB loan from CPF 2.6% pa to POSB Fixed 5 years 1.4% pa home loan early this year.

Majority of the people heard of DBS Multiplier account instead of POSB Cashback Bonus account.

I had switched over from DBS Multiplier account to POSB Cashback Bonus account in Aug 2020 and had been received alot higher "interest/cashback" monthly amount now. 

Only regret is why I did not make the switch earlier.

If you would like to know more about POSB Cashback Bonus account and what the difference between Multiplier vs Cashback account, you can click here to refer to my Aug 2020 post.

The focus in this post is receiving 3% cashback on your monthly housing loan repayment in Cash/CPF, as long as you can meet 3 or more of the below activities.

My monthly interest rate for my $100k++ outstanding loan is roughly $153.36.

To maximum this 3% cashback benefit. your repayment amount should be $1,000 per month as there is a cap of $30 cashback.

As long as your names are in the loan contract, you will be eligible for this.

In my case, myself and wife receive $30 each (Total $60) per month in our POSB cashback bonus.

This amount is equivalent to 39% ($60 out of $153.36). 

This is how I reduce my POSB fixed 1.4% home loan to 0.85% via POSB cashback bonus.

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