If I do not intend to sell my HDB BTO, do I need to repay my CPF OA before retirement? - Seedly
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Asked 4w ago

If I do not intend to sell my HDB BTO, do I need to repay my CPF OA before retirement?

I know we have to return flat price + accrued interest upon selling of house. But if I do not sell my house, will that affect the amount I get to receive through cpf life? My understanding is that RA money is pooled from OA and SA. If the total amount in RA just nice hit basic retirement sum, but I never ever repaid the amount borrowed from my OA, do I have to repay before being entitled to CPF Life Scheme? Answers may affect if I want to pay my bto by cpf or cash upon key collection. TIA!


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Hi there,

Lets try to answer your queries.

  1. Yes, if you do not sell your house, and you have a flat which has a significant portion of your CPF-OA in the house, it will affect your CPF life payouts, should you be unable to hit the FRS.

  2. No, if your RA has hit the BRS at 55, you do not need to repay to enrol into CPF life. It is a viable option, provided you are comfortable with low payouts after your retirement age.

  3. There are some strategies with regards to paying for your BTO with CPF funds or cash. I always believe its better to start off with your CPF-OA, however, do not wipe out your funds. Leave 20k in your OA- so that you can accrue better interest, and have the option to invest out your CPF funds.

  4. Using your CPF funds, would allow you to have more liquidity on hand, especially if you are considering renovating and purchasing furniture. The average cost of those is 30-50k. You can always switch over to pay cash at any point during your loan tenure, to allow your CPF funds to grow. Using current day cash, is a very viable option to grow your retirement funds and pay for your house at the same time. You will need to do the math, and figure out whether you are able to pay an average 700/month for a monthly mortgage without eating into your current day liquidity.

I do hope i was able to answer your queries!


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