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I intend to take a $500k loan from HDB, repayment term 30 yrs @ 2.6%. Next time if i sell away my flat, do i have to pay back CPF board the amount of money used for my housing instalments plus interest? If so, will it be better to pay the instalments by cash and let the money in CPF earn the 2.5% interest?
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1 Answer

Mike Lim
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Afternoon,

Technically, when you take mortgage loan, your monthly installment includes the interest component from your loan. When you uses CPF to pay your unit, you need to repay CPF board for the interest that's to be due on the amount which you have used for your unit. Thus, if you are financially able, paying by cash would be good while you choose to invest your CPF somewhere else. However, this would be dependent on your financial ability.

FYI
Mike Lim
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