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Derrick Lim

08 Oct 2020

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Does using CPF for a BTO downpayment accrue interest?

Hello! I was wondering if there is any accrued interest or cost of using CPF to pay the initial downpayment of a BTO. I looked up all the talk on accrued interest seems to only be on monthly payments.

If there isn't, then that's great.
If there is, then does the accrued interest start from the moment I paid that downpayment?

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Hariz Arthur Maloy

08 Oct 2020

Independent Financial Advisor at Promiseland Independent

Yes it does. Any amount out of CPF for housing will accrue interest and yes the moment it's out of the account, it starts.

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During BTO key collection, can I indicate to pay the mortgage using CPF-OA funds but repay my CPF-OA using cash every month / year? Will there still be accrued interest if I repay using cash monthly?

I had been paying my HDB housing loan for the past 3 years. If I do Partial Capital Repayment using CPF, does it benefit me from the loan interest rate and also accrued interest on my Cpf.?

Why do we have to return accrued interest for CPF monies used for housing, but not for CPF monies used for investment in CPFIS?

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