facebookHDB housing loan repayment? - Seedly

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Anonymous

06 Mar 2021

Property

HDB housing loan repayment?

  • Can i cash topup my cpf for partial housing loan repayment and enjoy income tax rebate?

  • Or direct partial repay the housing loan? Any difference or suggestion?

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Bullythebear

06 Mar 2021

Tutor at Self employed

Q) Can i cash topup my cpf for partial housing loan repayment and enjoy income tax rebate?

A) you can only use OA to pay for HDB, so if you cash topup, it'll be to the 3 CPF accounts. This means you'll have to put in much more than the amt you want for the partial repayment. Okay with that? You'll enjoy tax rebates up to the annual limit of cpf contribution per year (I think $37,740, you better confirm). If you exceed the limit, you can't even top up to 3 accounts.

Q) Or direct partial repay the housing loan? Any difference or suggestion?

A) you can also do partial repayment using cash. No tax rebates, but you end up 'paying' lesser amt, since 100% of the cash payment is channeled to pay for the repayment, unlike using OA part of cash top to 3 CPF accts.

Suggestions:

I will actually do both but minus the cash topup. Use my existing OA to pay for the partial repayment, then also do a cash repayment. But that's me. You have to decide what's best for you.

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