facebookWhat is your opinion on using only cash every month to pay for hdb loan repayment instead of using full OA CPF to pay hdb loan every month? - Seedly

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          Anonymous

          04 Dec 2019

          Property

          What is your opinion on using only cash every month to pay for hdb loan repayment instead of using full OA CPF to pay hdb loan every month?

          So that can Transfer what is above 20k in OA to SA every month to reach the FRS in shorter time?

          AMA 1M65

          7

              Discussion (7)

              What are your thoughts?

              Loo Cheng Chuan

              Loo Cheng Chuan

              07 Nov 2018

              Level 9·Founder at 1M65 Movement

              It is a good idea because cash carries a lower opportunity cost compared to the CPF OA. With the CPF SA, you actually get up to 6% returns where the HDB Housing Loan is currently at 2.6% interest rate. Hence, I would suggest you to use cash every month to pay for the HDB housing loan.

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                  Jason Sing

                  Jason Sing

                  21 Jun 2019

                  Level 10·School Of Hard Knocks And Life at School Of Hard Knocks And Life

                  Yes, it is a good idea. The interest of your fixed deposit is lower than the interest of your CPF OA. Hence it makes sense to use cash instead of CPF OA to repay your hdb loan.

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                      Hi OP,

                      Using cash to pay for your HDB loan is a wise choice. In essence, you are leaving CPF monie...

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