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?

If your cash flow is positive, this is a good strategy.

Hi there,

To answer your question, yes there is. If you are just doing a top-up of your CPF-OA, you will still incur AI on your loan principle.

If you are looking into doing voluntary home refund (VHR), where you use current day cash to pay off your YTD CPF-OA monies used, if you do pay on schedule, you might not be subjected to any AI on your CPF monies used.

Depending on your strategy, if you were to sell your house, in your case a BTO, you would most probably be able to payback the interest with ease, due to capital appreciation from your HDB. Doing a RSTU, instead of doing VHR, might be better for yourself in the long run, if your main concern is the interest rates.

I do hope i was able to answer you queries!