I am currently using HDB loan for CPF 2.6% interest per annum. Debt left about 300k. I now have accumulated about 30k OA and would like to consider if I should:

Why exactly do you have to do a repayment of 30k?

the cash on hand could be used to generate better returns than a 1.5% bank loan or 2.6% HDB loan. Endowus is one of the many instruments out there, why not explore more options other than robos?

Hi anon,

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If I were you, I would just leave enough in OA for my repayment in the event I lose my job. The amount should be at least 12 months or more. I personally pay my mortgage in cash but have a sum in OA so that I can switch my payments to CPF OA if things get tight.

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In our rush to pay off debt, we must not forget our contigency plan. If you pay off another $30K, switch to a bank loan and then lose your job, you might have to pay your mortgage in cash if you have no active income (and thus no CPF OA contributions). This will add stress to an already stressful situation.

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Unless of course, your reserves are very sufficient, and your job is very stable, then my advice would not apply. You have to do your maths and see what applies to your situation.