There is intereting post: Should You Take Housing Loan or Pay Your HDB House In Full If You Got The Money?, it's good to consider more possible options before making decision.
HDB loan interest rate is 2.6%/year,
Car loan interest rate is 5%/year,
Renovation loan interest rate is 7%/year,
Personal credit interest rate is 16%/year,
Credit card interest rate is 24%/year.
So obviously, taking housing loan is not a bad idea, especially it's easier now to have a positive return from equity market, at least in middle term. And if you have the plan to buy car or start own small business, cash preservation is very important, comparing with relative higher interest rate. Also my another consideration is to use CPF, because it can't be taken out at all.
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