Asked by Anonymous
Asked on 31 May 2019
I bought a BTO and do think i have the ability to finish paying off my HDB loan in 5 years using my CPF. But should i do it? I have already opted for a 10 year loan period maximum and would not be able to reverse it to 25 years. I am only concerned that the longer i stay in this house (>10 years and i would have finished paying for it using cpf), i would incur huge amount of accrued interest that I "owe" myself, instead of cpf generating it for me.
See Gabriel's answer for checking your accrued interest.
Refer to CPF website to see how to repay your OA and stop accrued interest from getting bigger. You would need to repay the accrued interest first then make partial or full payment of your principal.
You can login to cpf or use their cpf mobile app to check your current accrued interest. It snowballs very fast because of the 2.5% interest rate.