Hi all Is clearing home loan debts via CPF wise to do it , to reduce debts? I understand CPF is for retirement but lookin at home loans debts also an issue unless HDB provide Free

Hmmm. I don't think wise or not is the right q, it depends on too many factors.

It depends what one wants to use OA for - e.g. 1) do you want use OA to buy your next home 2) do you want OA to later transfer to SA (to grow SA for retirement?) 3) do you want OA to later be used for VERS? OA should be seen as a mean/channel for payment of home.

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If you only have 1 target - that is to reduce debt (i.e. reduce interest/burden - want to make sure your home is paid up fully) and your OA is of no other use (the above are not your concerns) then obviously OA to pay home loan is a good choice.

Clearing debt with CPF is not too a bad idea as long as:

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1. You catered for enough retirememt funds in CPF.
2. You have better uses for your spare cash (whether it is a life goal or to go aggressive in investing.

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As for me, I prefer to clear my home loan asap.

Everyone thinks differently, and there’s no absolute right or wrong answer. Personally, I prefer to clear my housing debts (or have as little debt as possible), even though it means my OA balance will be low or nearly empty. I’ve seen people buy luxury condos and then constantly worry about making timely payments and the risk of job retrenchment. For me, living with less or no debt brings greater peace of mind. However, to built SA is tough but just pressed on