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Anonymous

18 Apr 2019

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

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Jason Sing

30 Nov 2018

School 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

07 Nov 2018

Founder 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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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?

I’m currently paying my hdb loan half with cpf half with cash. As we know money used from cpf will snowball with accrued interest. Assuming you have cashflow, do you recommend using all cash instead?

Currently I'm paying for my flat with a HDB loan and if I have spare cash, would it be better to reduce the loan amount/duration or pay back my CPF used for the flat?

During BTO key collection, can I indicate to pay the mortgage using CPF-OA funds but repay my CPF-OA using cash every month / year? Will there still be accrued interest if I repay using cash monthly?

Buying a condo soon and will wipe out CPF OA balance for downpayment. Should I pay for the monthly mortgage in cash only (build up my OA balance) should I use CPF for the monthly mortgage?

Related Posts

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?

I’m currently paying my hdb loan half with cpf half with cash. As we know money used from cpf will snowball with accrued interest. Assuming you have cashflow, do you recommend using all cash instead?

Currently I'm paying for my flat with a HDB loan and if I have spare cash, would it be better to reduce the loan amount/duration or pay back my CPF used for the flat?

During BTO key collection, can I indicate to pay the mortgage using CPF-OA funds but repay my CPF-OA using cash every month / year? Will there still be accrued interest if I repay using cash monthly?

Buying a condo soon and will wipe out CPF OA balance for downpayment. Should I pay for the monthly mortgage in cash only (build up my OA balance) should I use CPF for the monthly mortgage?

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