facebookWould you advise people to pay for their HDB mortgage using cash instead of using cpf? - Seedly
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Anonymous

18 Apr 2019

Would you advise people to pay for their HDB mortgage using cash instead of using cpf?

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    What are your thoughts?

    Jason Sing

    Jason Sing

    30 Nov 2018

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

    Yes, it is advisable. 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 mortgage.

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      Loo Cheng Chuan

      Loo Cheng Chuan

      07 Nov 2018

      Level 9ยทFounder at 1M65 Movement

      I am a believer that if you can harness the high interest from the CPF Special Account (4%), I should consider a HDB loan quite healthy because it only carries about 0.1% above the OA interest rate (currently at 2.5%) and I can arbitrage the difference. Hence, I advocate the use of a housing mortgage loan as a means to arbitrage between the Special Account and HDB Housing Loan.

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