Rationale for repaying interest along with principal for CPF OA monies used for property purchase.?

Hi Kelly,

CPF money is meant to help fund our housing, medical and retirement needs. The interest rates are also relatively attractive.

Hence, if you use OA money to purchase a property, you are losing 2.5% on interest payments by the government which would have been paid to you had you not used your OA for a house.

Remember that OA is the backup to help you form your RA should SA prove to be insufficient.

Hence, in line with the purpose of our CPF money having to grow for it to be a meaningful retirement fund, we would have to pay ourselves the interest for the CPF money we have use if we sell off our property with a gain.

Thus, the rule on accrued interest coming into play.

The main objective of the monies in your CPF Ordinary Account is for your retirement. In order not to jeopardise your retirement, CPF Board decided to impose this rule.

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