29 Dec 2020
When buying a house, how much should it come from our CPF and the remaining should come from cash? I am wondering if there is a "best ratio" between how much to pay via CPF vs cash. Does anyone know?
Should the bulk it come from cash if I can afford to pay with it using cash instead of my CPF?
If your cash flow becomes too tight if you use cash to pay for your house, use CPF.
If you are confident of making your cash work hard and grow more than 2.5% p.a., then use CPF.
If you are not confident of making your cash work hard and grow more than 2.5% p.a., then use cash.
As for the exact percentage of CPF vs cash, it depends on your needed cash flow and future savings needed for big-ticket expenses e.g. buy furniture.
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