Are you able to repay your monthly mortgage loan with half CPF and half Cash? - Seedly
Seedly logo
Seedly logo
 

Property

CPF

Savings

SeedlySOS

Loans

Anonymous

Asked on 27 Oct 2020

Are you able to repay your monthly mortgage loan with half CPF and half Cash?

I was just wondering if this is possible because I see that what many others do is that they will only use cash as a lump sum to clear off the loan amount. But I am unsure if I am able to use part CPF part cash for the monthly repayment for bank loans.

0 comments

4 answers

Answer Now

Answers (4)

Sort By

Hi anonymous,

With regard to taking an HDB housing loan, yes, you can!

After choosing to wipe out your combined CPF-OA monies for the mortgage, some people might find themselves in a position where they don't have enough CPF contributed on a monthly basis to pay for their monthly mortgage using their CPF.

If so, you can use cash to pay or top-up the difference. But more importantly, this probably (I'm making a guess because I don't know your financial details personally) means that the flat you picked is slightly out of your financial league.

If you're going with a bank loan, the same thing applies.

Yes, you can use your CPF-OA savings to pay your bank loan payment (just speak to your preferred bank to find out more). If there's any shortfall, you can make up for it in cash and pay it directly to your bank.

To keep things clean though, I would just stick to one form of payment throughout. So either all cash or all CPF. This way you can better track and plan your finances!

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

Yes you can pay partially by CPF and Cash.

But i'll advice people to pay using CPF fully.

Take the cash that you have intended to pay for house installment to park in a low cost diversified etf, such as S&P500 or VTI.

You'll start to see your cash growing gradually outpacing the accrued interest eventually..

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Z

ZY

Level 6. Master

Updated on 28 Oct 2020

Yes you can, I am doing that now, paying my bank loan monthly installment partially by CPF and partially by giro from bank account.

https://www.cpf.gov.sg/members/FAQ/schemes/housing/housing-scheme/FAQDetails?category=housing&group=Housing+Scheme&ajfaqid=2185620&folderid=11415

For Bank loan, you can change the amount you wish to deduct from CPF monthly fully online (refer to link above). The balance will be deducted from your chosen bank account, you will need to arrange with the bank for this.

For HDB loan, unfortunately you will have to go to the nearest HDB branch for this arrangement.

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

I'm not sure too... I only know that you can do voluntary housing refunds to your CPF OA but it's tedious to have to do it every month. Contact HDB?

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post