Asked by Anonymous

should I use my cpf to service my bank loan for private property? Just brought a condominium and wondering if I should use all CPF or a mix of both CPF and cash. I’m in early 40s now.

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    • Jeff Yeo
      Jeff Yeo, amateur Social contributor at School of social sharing
      268 Answers, 386 Upvotes
      Answered 2w ago

      I think it is a better ideal to pay through the bank loan.

      using CPF incurrs the accrual interest and you lose out on the int given by CPF. You can argue that CPF and the int is your own but it is better to pay just one set of interest(bank)

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    • Loh Tat Tian
      Loh Tat Tian, Ex-Financial Advisor, Founder at Singapore Insurance Value Finding

      Top Contributor (Dec)

      198 Answers, 292 Upvotes
      Answered 2w ago

      There are more questions we will need first.

      1) How much loan are you taking? How confident are you able to service it pass 55?

      2) Are you looking at selling the condo or not? The accrued interest may be something you might want to take a look since this may affect your BRS and FRS (especially if your CPF SA is unable to hit FRS).

      3) Are you doing other investment which will give you returns better than 2.5%? If not, it's prudent to use cash to service.

      Do let us know more to help you.

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