Home > Singapore Scene, The Uber Brilliant 50 year housing loan > The Uber Brilliant 50-year Housing Loan

The Uber Brilliant 50-year Housing Loan

If you have not heard, UOB is offering 50-year housing loan. Such long term housing loan schemes are uber brilliant. Don’t believe me? Let me count the ways.

  1. Have you also heard that there is a slight change to the wedding vows? It used to be “till death us do part”. Now, to be practical, and given the higher incidences of divorce, some are considering “till 50 years or when the housing loan is paid up, us do part”. See the brilliance of the plan? It will save marriages and families from early divorces. The financial implications otherwise may be too heavy to bear. We now have the bankers on the side of longevity of marriages!
  1. The second reason this scheme is brilliant – housing has immediately become affordable! Stands to reason, doesn’t it? Somewhere in the internet, someone did a calculation:

If a borrower takes out a 50-year loan for $1 million at an interest rate of 1.7 per cent, he would have to pay about $2,475 monthly for his mortgage, compared with $3,548 if the loan ran for 30 years.


Since  BTO 4 room flats in mature estates cost about $500k, can you see how affordable HDB has become?? Monthly instalments could be less than $1000!


  1. Let’s work backwards. Assuming $2475 is 30% of a couple’s combined salary. This means their combined income is $8250. Now that calculation is for a loan of $1mill dollars. Can you see how much housing prices can grow and still be affordable??? Can you see how we can grow our HDB flats into retirement assets? Brilliant or not?
  1. Next, have we not lamented much over falling birthrates? This brilliant loan scheme will encourage families to have children. I mean, who can actually pay hefty mortgages past retirement? Guess who will need to shoulder the burden? We need to give birth to ATMs (Auto-Teller Machines, in case you are wondering).
  1. Furthermore, we are always worried about retirement homes for the elderly. Worry no more. By ensuring our children pay off the remainder of our housing loan, we have removed the option of their buying their own homes. They will have to stay with us! With just one housing loan scheme, we have removed the worry of retirement villages. Still don’t think the scheme is brilliant?

Now I know why we pay our ministers celestial salaries. They are brilliant and so forward thinking. Way back when, they already said housing is affordable. They have been proven right. They said that our only home will be an asset – and they have been proven right again. They said we pay them because they are brilliant – by which I take it they mean they will find solutions to our problems. Perhaps they had the foresight to know of this new housing scheme that will successfully kill so many birds with just its advent. They deserve their peach garden Chye Tow Kuay, while we can only drink in thin, teochew porridge.

In the book of Job, he said, “Naked I came from my mother’s womb, and naked I will depart.” In the book of Singapore, a future Job may well declare, “Indebted I came from my mother’s womb, and indebted I will depart.”

Is this the world we want?

  1. Ernest
    July 23, 2012 at 3:10 am

    How brilliant!
    Now a 1 million dollar house becomes “affordable”.
    25 years paid by you. 25 years paid by your indebted children.
    Modern economic slavery.

  2. ObserverOne
    July 23, 2012 at 3:35 am

    You are a very good writer indeed.

    • SpeakSpokeWriteWrote
      July 23, 2012 at 5:28 am

      paiseh – but thank you.

  3. The
    July 23, 2012 at 9:56 am

    That’s assuming most people can keep their jobs for 50 years to service their loan. They will have to start work at age 12 and retire at 64. Of course, some can work even if they are approaching 90 years old.

    • SpeakSpokeWriteWrote
      July 23, 2012 at 10:09 am

      That’s right. Employment is no guarantee – and in fact with a massive housing loan, there is no bargaining power for the employee. if the foreign talent can accept much less, guess who suffers? So another brilliant result – cost of employment can be controlled!! Frankly, this loan scheme benefits the haves – they can continue to leverage and buy more properties, when they do not need the loan. Those who take it because it is the only way to afford a home can find themselves in deep trouble. Frankly this is really quite worrying

  4. RichDad
    July 23, 2012 at 10:28 am

    Great post!

    “Fact”: HDB flats are affordable because…

    By the skillful and sustained use of propaganda, one can make a people see even heaven as hell or an extremely wretched life as paradise. – Adolf Hitler

    Make the lie big, make it simple, keep saying it, and eventually they will believe it. – Adolf Hitler

    All propaganda has to be popular and has to accommodate itself to the comprehension of the least intelligent of those whom it seeks to reach. – Adolf Hitler

  5. ObserverOne
    July 25, 2012 at 5:03 am

    It is time for all to understand the actual current concept of HDB (version 2012).
    It is also worth comparing with initial concept and objective of HDB (ended when Mr. Ngiam left HDB).

  6. ObserverOne
    August 6, 2012 at 4:10 am

    It is very sad to have a heavy weight officer commented this topic without proper action done. Well, this is our Division A after all.

    • August 6, 2012 at 5:20 am

      Yup – it’s such an insult to call it a gimmick when we all know this gimmick obviously had the approval of governing bodies

  7. deedoo
    August 6, 2012 at 7:37 am

    I dont get what has this got to do with the government…

  8. deedoo
    August 6, 2012 at 7:38 am

    isnt this a marketing gimmick done and approved by UOB’s director? A private company? No link…

  9. ObserverOne
    August 7, 2012 at 5:19 am

    deedoo, your question seems to be quite tricky. I reserve my comment on this.

  10. ObserverOne
    August 8, 2012 at 3:03 am

    Well, another story about 100 year old house, frugal life, and of course house master. Combining with this 50 year housing loan gimmick, it is crystal clear now that we should not and never ever compare.

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