You need to know your long-term outlook. Are you going to sell the place in the near future or will it likely be a permanent home? By understanding your outlook, you will be able to plan for cashflow that works in the right direction. Let me give you an example based on $500k loan @ 2.6% loan rate. For 25 year loan, our monthly instalment will be $2,269 and the total interest paid will be $180,504. For 15 year loan, our monthly instalment will be $3,358 and the total interest paid will be $104,356. For the first 15 years, our comparison will be the repayment outlay, which is a difference of $1,089 monthly. Now, the key question will be value of this $1,089 to generate a return that is higher than the difference in total interest payable over time. This will be the direct opportunity cost that we will face - e.g. are we able to afford to pay the additional $1,089 monthly? Is the approximate $250 monthly interest worth the stretch? If you are using CPF to repay the house and wish to sell the house some time later, then it may make sense to reduce the accrued interest in your CPF account. If you plan to stay for the long-term, then go back to the earlier paragraph to do a detailed breakdown to find the right risk-return point for your opportunity cost. Here is everything about me and what I do best.