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.

Share this
Answer this question
Write your answer

Answers (2)

Sort by:
Most Upvote
  • Most Recent
  • Most Upvote
    • 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)

      Comments (0)
      Share this
    • 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.

      Comments (2)
      Share this

Manage your money for free today!

Download on the App StoreGet it on Google Play
  • Quick overview
    Quick overview of your bank and card transactions.
  • Secure syncing
    Secure syncing of your bank or credit cards transactions
  • Automatic categorization
    Automatic categorization and analysis for your expenses
Seedly app