Andrew Kwek

07 Jun 2019

∙

If I feel that I can make 3-4% return on my investments through index funds (i.e STI ETF), should I pay my home loan using my cpf oa or using cash instead? ?

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Clarence Chua

07 Jun 2019

Financial Planning Specialist at Prudential Assurance Singapore

Personally, I will advise to pay a portion of it with cash, as CPF is a really good financial instrument for retirement.
Giving 3.5% for your first 20k in OA and 2.5% subsequently.

Taking money out of your CPF, means you will lose the 2.5 or 3.5% of interests and on top of that you are also paying your loan interests of 2.6% (assuming one took a load from HDB) so thats is like a -5%.

But not everyone can afford to pay with cash and also some may earn more than enough for CPF hence its good for them to split as they have surplus from their CPF. (Everyone has a different number so its good to do your maths before deciding on the % split)

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Teo See Hwa

17 Apr 2019

MArketing Associate at Propnex

Compare apple to apple.

HDB loan is leverage and depends on the type you buy you get capital apprecation.
investments through index funds (i.e STI ETF) is only using your money call cash or CPF.

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For those who invest, and about to buy your home where you would stay for whole of life, would you pay for your home using cpf oa or cash? How do my spouse and I make a decision?

What is your opinion on using only cash every month to pay for hdb loan repayment instead of using full OA CPF to pay hdb loan every month?

I have 30k in UOB acc including 5mth emergency fund. I want to hit 50k to max my interest. Does it make sense to use say 10k from it and use it in SSB / STI ETF and cash out instead? Mid 20s here.

If I have enough to pay off my home loan, should I pay it off or use the money to invest elsewhere instead? Don't wanna have debts, but also read that it's dangerous to lock up cash in property...?

40 yrs old single, saving for retirement. I've only invested in STI ETF using OA. Thinking of selling it soon and switch my OA to Endowus instead, is that a good idea and which fund to buy first?