What are the advantages or benefits of CPF Housing Refund if I'm never going to sell my HDB flat? - Seedly
Seedly logo
Seedly logo
 

HDB BTO

HDB Resale

CPF

SeedlySOS

Anonymous

Asked on 28 Oct 2020

What are the advantages or benefits of CPF Housing Refund if I'm never going to sell my HDB flat?

0 comments

2 answers

Answer Now

Answers (2)

Sort By

Hi anon,

Basically, if you take a CPF Housing loan and sell your HDB flat, you'll have to return the principal amount plus any accrued interest to your ordinary account (assuming you sell it before 55 years old).

But since you have no intentions of selling your flat, you won't need to return that borrowed amount back into your CPF OA.

So there aren't any advantages or benefits in this case.

The only thing I can think of is since you decided to use your CPF to pay for your flat, you probably are using cash to build your retirement fund (eg. through stocks, bonds, or a mix of other financial instruments) and can secure a return of more than 2.5% (prevailing interest rate of OA).

The fund which you have built up is probably more liquid than if you had left your money in your CPF to grow. Because depending on which CPF scheme you are on (eg. CPF Life) the annuity you get will depend on how much you managed to accumulate in your RA (and your entire CPF account in general).

Hope this helps!

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

If your cash can grow at 2.5% p.a. or more, then I can't imagine there being any realised benefits if you don't sell your flat ):

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post