Is it better to pay our HDB monthly installments with cash or using CPF?

I always max out my CPF.

If i have a good opportunity or crisis, can I take out my CPF that I have not touched for that emergency or opportunity?

then whats the use of 2.5%?

CPF is not your own money until you can spend it =)

This question is one of the most frequently asked on Seedly. As I have mentioned before, it depends on your outlook towards CPF: how do you view it?

https://seedly.sg/questions/is-it-possible-to-p... If you are disgruntled with the system and have no confidence in the system, then I would say use CPF to pay off the loans. However, do be aware that on top of mortage interest, any sum withdrawn for housing would have accrued interest.Essentially, whoever that used their CPF for housing would penalized with a double whammy - you will be paying interest twice: 2.6% to HDB, and 2.5% to yourself. This was the situation that many Singaporeans found themselves in as they speculated on the housing market, which resulted in them being "asset-rich, cash poor"!

For that price, A 20 year loan will require about less than 800 per month for each of you.
If you can handle this cash expenditure, and is planning to upgrade to a bigger home in the future, then paying by cash would be good so that you can get it back when you sell the flat to put it into the next house down-payment. You get to accrue your cpf at 2.5% plus 1% more if your cpf balances are below 60k. In this case you can grow your cpf savings better and faster in a more secured and safe way then taking on more risk yourself with cash investments.

It will be tough for you at first but as you and your wife grow in your careers then things will get easier for both of you.

Of course it depends if youre selling it, and if you do anything with the CPF monies or cash.

You can invest (and should invest either). Cash has more versatility, so I could probably help you achieve a higher return on it than OA investments.

But if you intend to sell your property, then the accrued interest is a huge factor.

Ultimately it depends. But Id lean towards CPF..