facebookI have low risk appetite. Should I use spare cash to make a voluntary refund of housing amount withdrawn at CPF ($150k including accrued interest) or do partial payment of housing loan (1.8%,$140k left)? - Seedly

Advertisement

Anonymous

16 Dec 2020

Property

I have low risk appetite. Should I use spare cash to make a voluntary refund of housing amount withdrawn at CPF ($150k including accrued interest) or do partial payment of housing loan (1.8%,$140k left)?

I am servicing my housing loan with monthly repayment from cpf.
I prefer liquidity of cash as I might be relocating in the next ~2yrs time.

Discussion (6)

What are your thoughts?

Jiayee

Jiayee

16 Dec 2020

Salaryman at some company

Your housing loan is through the bank? Are there prepayment penalties?

Have you also considered transferring to CPF SA to enjoy more interest?

View 1 replies

Why would you put money into CPF to lock up if you want liquidity?

Top up SA up to 7 k for tax savings and get 4% interest but your loan will still be there and make sure you have emergency savings of at least 6 to 12 months in case you lose your job. You prepare for retirement but nothing happens to your home loan.

Refund OA you will get 2.5% interest which is higher than your bank loan.

View 3 replies

Write your thoughts

Advertisement