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Tom

10 Dec 2019

Property

Paying HDB loan in full with cash or with CPF instead?

Assuming I will have enough cash to pay off my HDB when it’s ready, should I do the same or use CPF for the HDB loan instead? Paying off in cash will wipe out my savings.

Discussion (3)

What are your thoughts?

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Teck Lun

10 Dec 2019

Computer Science / EEE at NUS / NTU

May need to check what is your loan rate. If it is lower than 2.5%, i do not think that you should use CPF to pay off the loan. With regards to cash, depends on your expected investment return. If the expected investment returns is expected to be < loan rate, then it will be good to use cash to repay your loan.

Wong Ming Yao

09 Dec 2019

Product and Community Associate at 8VIC Global Pte Ltd

It is up to your personal investing methodology and beliefs.

If you believe that cash on hand can generate you more ROI than the rate CPF is giving, then you might want to consider paying using CPF.

Pang Zhe Liang

03 Dec 2019

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

Monies in your CPF ordinary account is meant for your retirement. Accordingly, the use of such monie...

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