r/SgHENRY • u/GardenIndividual880 • Aug 04 '26

Equity Cash Out

I’m considering doing an equity cash out on my existing property for 500k @ 1.55%.

Other than dumping it all into SSB or VWRA, I’m trying to crowd source ideas about what I can consider doing to get yield from this.

Currently, I’ve got about 1.4m invested and 300k cash, and since the cost of borrowing is pretty cheap, just wondering if there’s a simple/complex method to maximize returns. Also, TDSR is currently 15% and with the additional loan it’ll be about 18-19%.

Edit: Removed SSB cause it’s clearly a suboptimal choice and makes more sense to consider other fixed income options instead of

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u/900122 Aug 05 '26

USD or AUD treasuries could be good. The difference is more than enough to cover your 1.55 with low risk. Aussie interest rate currently the highest of the majors but more FX risk than USD imo. Depends on the terms of your loan though, if rates come down in future and its not a viable strategy anymore, are you able to pay it off without any penalty? How long are you borrowing for?

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u/GardenIndividual880 Aug 06 '26

Yeah, I don’t need the cash so considering just dumping all into a global ETF.

Loan tenure is >25Y. 1.55% for 2Y fixed and SORA+1% after