facebookWould you advise people to pay for their HDB mortgage using cash instead of using cpf? - Seedly

Anonymous

18 Apr 2019

SeedlyAMA

Would you advise people to pay for their HDB mortgage using cash instead of using cpf?

AMA 1M65

Discussion (2)

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Jason Sing

30 Nov 2018

School Of Hard Knocks And Life at School Of Hard Knocks And Life

Yes, it is advisable. The interest of your fixed deposit is lower than the interest of your CPF OA. Hence it makes sense to use cash instead of CPF OA to repay your hdb mortgage.

Loo Cheng Chuan

07 Nov 2018

Founder at 1M65 Movement

I am a believer that if you can harness the high interest from the CPF Special Account (4%), I should consider a HDB loan quite healthy because it only carries about 0.1% above the OA interest rate (currently at 2.5%) and I can arbitrage the difference. Hence, I advocate the use of a housing mortgage loan as a means to arbitrage between the Special Account and HDB Housing Loan.

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