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Dear Gurus,

My HDB flat outstanding $13k. My CPF has eg 20K. May i ask what is the benefit if I going to make full redemption of my HDB by paying using my CPF? or just continue the instalment until it complete?

I ask because i am going to sell the HDB by year 2018. which way is making more sense / value? Make full payment or just leave it until i sell the unit?

Thanks in advance.
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2 Answers

Afternoon,

Should you opt to clear off the mortgage loan with the amount of CPF OA available, you will save up on the amount of interest payable on the balance mortgage. The sums may not be huge but it still adds up.

FYI
Mike Lim
 96929209 
m52i@yahoo.com
ERA Read More
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  • HT
    Thanks. To clear the mortgage loan, do i need to pay legal fee or any other fees at bank / HDB end?
Hi Sir/Mdm,

CPF is paying you a 2.5% interest rate in your OA whereas the HDB interest rate is 2.6%. You should consider paying off the loan in order to save on the difference in interest.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS)
Cert-in-REA
(E) nicktan@propertyavenue.com.sg / nick96444854@gmail.com
(W) www.nick-tan.com / www.propertyavenue.com.sg

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