Good question. I often get a this question or a similar one on should one pay up their home loan with their OA or use it to transfer to SA to get 1M65.
If I were in your situation, I would try to make sure that I have enough money in either cash or OA to pay for the deposit for the house. Then, the next question is reduce my loan with OA (or cash) or transfer OA to SA (thus incurring higher debt). I cannot tell you what you should do, but I will tell you what I have done. I transferred to SA more because the home loan interest rate is much lower than SA - one can arbitrage the difference. Usually between 4% minus 2.5% (or more). Not everyone likes to incur debt, but I think some debts are healthier than others. This is one of them.
Only if you're willing to pay your mortgage in cash, pay a higher monthly per month, and cm get the loan of 350k from HDB or the bank.
I would prefer cashflow over a slight bump in returns. So I personally wouldn't.
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I'm 34 and only maxed out my SA after the housing is settled.
Speaking from personal experience (...
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