5 Answers

askguru expert
Hi there, thanks for writing to us on AskGuru.

PropertyGuru Finance provide our customers a ‘mortgage marketplace’ experience where they may access the latest information on property market trends,
updated mortgage loan offerings, and to find out how they may maximize the benefits from choosing the right mortgage loans offer.

Mathematically, if your mortgage loan rate is higher than your CPF OA interest rate, then you should utilise as much CPF OA as you possibly can. Likewise, if your loan rate is lower, then you should get borrow more and let your CPF OA earn interest instead.

You can take CPF OA interest rate constant as 2.5%p.a.. Next by knowing your current loan rate, you will have your answer whether to borrow more or downpay less. (ie if you're using HDB loan, which is higher than 2.5%p.a., then you should borrow less. Likewise if you're using bank loan, which is currently lower than 2.5%p.a., then you're be wiser borrowing more).

Thereafter, always come back relook at your loan rate vs CPF OA interest rate at least every 3 years, to keep in check your borrowing rate is still lower than your CPF OA earning rate.

In general, you would like your loan be the lowest loan rate available, and your money to earn the highest interest possible, at any point in time, where possible.

Should you need to speak to our financial home advisors, do feel free to Whatsapp us at: wa.me/6587695300 or

Hope this answers your question.

Best Regards,
Apple Tan
Team lead
PropertyGuru Finance
Aaron Chong
Hi Wai Foong,

It is dependent on individual. I have clients who chose to use part CPF and part cash.

9730 8455
Ivan Ng
Hi Mr. Kok,

Personally would think its better to maximize the loan as interest rates are at all time lows and its good to capitalize on that. Should interest rates adjust higher in the future, you still have this flexibility of the CPF OA ready to redeem the loan partially or fully. You also need not worry if there is a period where employment income is not available and can use this CPF funds to service the mortgage. Of course the downside is that the overall total interest paid would be higher.

May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
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Robbie Chen Chee Howe
Hi Mr Kok,

There is no right or wrong answer to your question. It really depends on your profile, financial needs, as well as plans moving forward.

Perhaps you could share more with me on your situation, so that I can assess it better and make a more appropriate recommendation?

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305. I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
9748 6305
PropNex Realty
Ling CK
Hi Mr. Foong,

1) If you are using an HDB loan you only can reserve a max of $20k in your CPF OA. This is so that you could minimize your loan amount.
2) Unless you are using the bank loan, then you could borrow up to the maximum. Or you could opt to put more of your CPF OA fund to reduce the loan amount.
3) Assuming you are using a bank loan with the flexibility mentioned. I'm using the current situation to offer my two cents of thought.
4) The interest earn in your CPF OA is 2.5%, where the current fixed interest rate is around 1.3%, even lower if you use a Flexi interest rate such as SORA.
5) You are earning more by keeping your CPF OA than to put them into the house which might not be appreciated that much.
7) It is always at an advantage to maximize our leverage with others people's money than ourselves.
8) Of course in the event when the interest rate went up, you can always refinance or reprice your mortgage package accordingly.
9) Do note that there is a charge of legal fees of ~$2k depends on individual bank policy. Repricing will be free.

Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at 90110636, or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK

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