Anonymous
Am thinking of getting a HDB flat with my spouse but am unsure if we should choose to pay our mortgage repayments with CPF or cash or a combination of both?
Understand that cash on hand is more liquid and give more options to spend on other essentials expenses. Moreover, CPF money is meant for retirement and does CPF meant I could have lesser for retirement?
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Use CPF if thats your final home, use more cash if you are planning to upgrade in the future.
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We pay with CPF as default, then along the way, when the spare cash lie around, we do "voluntary HDB...
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Combination of both would be good - my take is to reduce interest payable to banks/HDB (longer loan term, higher interest payment). Best if the loan can be paid before your earning power decreased as you get older (u can use that as a target), as we age, OA contribution also lesser.
but of course if able to invest the cash (at higher rate than loan interest) then ok to pay the loan interest (go all CPF-OA).
CPF-OA + CPF-SA is for retirement.