I had been paying my HDB housing loan for the past 3 years. If I do Partial Capital Repayment using CPF, does it benefit me from the loan interest rate and also accrued interest on my Cpf.? - Seedly
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Anonymous

Asked on 10 Apr 2019

I had been paying my HDB housing loan for the past 3 years. If I do Partial Capital Repayment using CPF, does it benefit me from the loan interest rate and also accrued interest on my Cpf.?

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Andrew Kwek

Andrew Kwek

Level 3. Wonderkid

Answered on 02 Jul 2019

Yes I recommend to use more cash to pay for your loan, unless they are generating more than 2.5%. Keep a 3-6 months emergency buffer and you should be fine. Overall, it's all about asset allocation and you want to make sure you are not over allocated or too concentrated on certain asset class.

Typically the asset classes are stocks, bonds, long term bonds, cash, commodities, home equity. Just make sure that by partial repayment you are not overly allocating your capital on home equity.

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Thank You!
Can you clarify
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Just giving a brief answer here. Your interest rate does not change, though the accrued interest on your cpf will reduce.

Good to do partial repayment if your cash or cpf OA investment is giving less than 2.6%p.a. returns.

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

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Siow Nan

Siow Nan

Level 6. Master

Answered on 01 Jul 2019

Assuming you are taking hdb loan @2.6% interest. And you use your OA to pay partly. You will forgo 2...

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