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Anonymous

08 Nov 2020

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Hi, what happens after one makes a partial housing refund with cash to CPF OA? Will the cash refund be used to offset the principal of property or accrued interest first?

Property was paid with CPF OA using 180K on property and has so far accrued interest of 25K. If i make a partial housing refund of 50K cash, will the 50K be used to offset the property first or accrued interest?

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Cryotosensei

03 Sep 2023

Blogger at diaperfinancingfund.blogspot.com

Property first

Source: I make VHR contributions at least once every two months haha

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Alvin Mok

08 Nov 2020

Not 100% sure how CPF will update your statement. But there should be no difference to the overall status.

In your example, you would "owe" yourself 205k (180+25). So if you repay the 50K, you would now "owe" yourself 155K (205-50).

While it's prudent to do a housing refund with spare money you have no other use, also make sure you already have enough backup.

You may of course consider good investment options that return 3.0% in long term.

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