What is the best option for using CPF to pay for mortgage installment?

Hi W J,

Logically, if your cash is earning an interest lower than CPF OA, then I would use cash to pay my mortgage, since my CPF OA can gather more interest, and act as a buffer if I lose my job and need to continue payments.

However, if you need cashflow, then there's nothing wrong with using CPF OA to pay, since cash is far more flexible, and then do RSTU for tax relief and extra interest. I would consider RSTU if the tax savings is at least 7% or more on my tax bracket, and definitely do it if I'm in the 11.5% tax bracket.

Ideally, you'd want to do RSTU and also pay your mortgage in cash, but this may not be possible for everyone.

The VC to SA route is very strong due to the high interest and tax relief; its going to be the dominant choice if you have enough financial stability/resources to wait till age 65 for any return (put simply "you don't need the money")