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Syalon

14 Oct 2020

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To pay housing loan in cash to save CPF OA? Or to pay with CPF OA and do voluntary contribution later? Since they will spread to MA and SA with more interest?

Hi
I am paying my house loan with CPF currently and looking to change.
Not being investment savvy, i'm looking to put money into CPF for stable growth.
I have set aside enough money for emergency funds n dailys so no worries on that.
Should I pay the loan in cash instead so there are more money in OA, or, should i pay with OA, and later do a VC so that the money can spread out to MA and SA which have higher interest?
Understand at 55 yo, will be able to draw out after setting aside Life amount.

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Focus

12 Dec 2021

Hmm, may I know VC stands for what?

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Jovan Lai

14 Oct 2020

Hi there,

It's a personal choice rather than right or wrong.

It depends on what you are going to do with your money if you use your CPF OA to pay. For myself, I will much rather use CPF OA and invest my spare cash as I'm confident I can generate much more returns than the CPF OA interest.

Thewokesalaryman wrote a post on this, check it out!

https://thewokesalaryman.com/2020/08/18/should-...

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Alvin Mok

14 Oct 2020

Hi Syalon,

If you don;t want to consider other options, then yes, use the CPF but always understand...

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Is it wise to repay HDB housing loan earlier than loan duration (paying in full/partial)? To save on loan interests / use less of CPF OA?

Is it a good move to save spare cash thru (1) first making voluntary housing refund to CPF OA, then (2) transferring the sum from OA to SA?

Any downsides with using OA to pay housing mortgage and using the cash saved to voluntary top up SA?

I am already 55, and have done my CPF ERS. Since I am still working and have contributions to my CPF SA and OA, may I know can I still transfer my CPF from OA to SA to earn higher interest rate?

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