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?

Use cash if u thinking of flipping your house. Use CPF if this is ur final home

Hi OP,

Using cash to pay for your HDB loan is a wise choice. In essence, you are leaving CPF monies to compound in your OA at a generous rate of 3.5% while your HDB loan is only at 2.6%. In this manner, you get to enjoy an "inversion", in which your CPF monies will be working harder than the cash in HDB loan.

Also, the money in your CPF OA can act as a a security net to cover about 1-2 years of HDB loan mortage payment if you or your spouse face financial difficulties due to retrenchment or illness of a loved one.

Lastly, if you are even more bold and care less about liquidity(CPF OA can be used to pay for education and housing), you can do an OA to SA transfer and let the amount compound at a staggering 5% risk free interest, which will bring out the power of compounding- the sum will grow to 4 times the principal in 30 years time! Do note that this transfer is irreversible though.

All the best in reaching FRS!