facebookI have low risk appetite. Should I use spare cash to make a voluntary refund of housing amount withdrawn at CPF ($150k including accrued interest) or do partial payment of housing loan (1.8%,$140k left)? - Seedly
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Anonymous

Asked on 15 Dec 2020

I have low risk appetite. Should I use spare cash to make a voluntary refund of housing amount withdrawn at CPF ($150k including accrued interest) or do partial payment of housing loan (1.8%,$140k left)?

I am servicing my housing loan with monthly repayment from cpf.

I prefer liquidity of cash as I might be relocating in the next ~2yrs time.

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Answers (2)

Your housing loan is through the bank? Are there prepayment penalties?

Have you also considered transferring to CPF SA to enjoy more interest?

1

Question Poster

17 Dec 2020

Yes thru bank, no penalty for partial prepayment. Haven’t thought about putting money into sa since I’m not keen to have the cash being locked up till 55yrs old

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

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R

Ryan

Level 5. Genius

Answered on 15 Dec 2020

Why would you put money into CPF to lock up if you want liquidity?

Top up SA up to 7 k for tax savings and get 4% interest but your loan will still be there and make sure you have emergency savings of at least 6 to 12 months in case you lose your job. You prepare for retirement but nothing happens to your home loan.

Refund OA you will get 2.5% interest which is higher than your bank loan.

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Ryan

16 Dec 2020

Take note that once you loan goes below 100k, you might start to have refinancing limitations as banks tend to have minimum loan amounts

Question Poster

17 Dec 2020

Noted thanks!

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

Post