PFF Panel 1
Seedly PFF 2019
Asked by Anonymous
Asked on 02 Mar 2019
If you are planning to buy a HDB in near future with your CPF you may want to avoid doing that. Transferring from OA to SA do help you accumulate more interests and as we know these interests roll over time to a good amount.
Also with increasing costs and inflation on yearly basis, interest rolls helps to buffer. I recommend you to do a quick calculation, have enough to support at least the down payment and 3-5years of installments; then transfer the rest to SA. Continue to transfer every JAN to your SA or on monthly basis if you're dilligent.
It is good to transfer for it to grow. But u will not be able to undo the transfer so be wary of that.
For property purchases, its also good to leave buffer in CPF OA (if you are paying the loan on cash). This helps cover the loan when you get hit by retrenchment.
You can use your CPF OA for property/mortgage payment. The transfer is irreversible. You need to be mindful if you would still want to keep funds in OA for your property purchase or existing mortgage payments.