Here are the pros and cons of using cash or CPF to pay off home Transfer part or all in OA to SA to earn a higher interests of 4-5% https://dollarsandsense.sg/pros-cons-transferring-cpf-oa-sa/ Let's do a simple calculation: Loan amount: $100,000 Loan term: 25 years Interests rate: 2.6% Monthly payment: $453.67 Total payments: $136,100.65 Total interests: $36,100.65 If you use the cash to pay and let the cpf grow at 4% by transferring from OA to SA, CPF balance: OA: $0 SA: $100,000 MA: $30,000 after 25 years OA: $90,000 SA: $266,583.63 MA: $54,500 Total interests earned: $166,583.63 BUT if you choose to use CPF to pay: Accured interests: $62,500 This is the amount you have to refund back to your own CPF if you sell your flat. (If you did not meet the FRS) I hope I did not confuse you. In short, unless you do not intend to sell your flat at all then using cpf to pay your flat will be better. Those spare cash you have can go into investments to generate higher returns. But if you are unable to generate higher than 2.6% interests, then paying off your loan ASAP will be a better option. Because in 10 years' time you will be spending a lot of money on travelling and setting up business and you do not want to have any debts.