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

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?

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    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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