Which is a wiser thing to do, use my CPF to pay for house or use cash? I am contemplating how to use my funds to the best capability.

In this high(er) interest rate environment, the 2.5% in CPF is easy to beat. If you know how to invest (basic i.e. buying ETFs and bonds), I'd suggest to use your CPF to pay for the house, especially if you're younger (not close to being able to withdraw CPF).

My take:

• Cash if repayment/reduction of loans (HDB/Bank) best - so while loan decrease, CPF-OA grows (can transfer to SA to reach FRS).
• Second best Cash + CPF so some CPF-OA have room to grow
• Lastly 100% CPF (downsides - 1. CPF-OA lose compound interest 2. Retirement have to be separately done). If choose this option, I suggest every year end, the cash from e.g. bonus do to lumpsum pay down of loan.

All the above options depends on one's means. Hope this helps!

Refer to this too: https://blog.seedly.sg/cpf-hacks-tips-for-singa... - in the article there's a comparison + impact.