Rosschang 1st Gear April 18, 2011 Share April 18, 2011 but nowadays many bank offer below 2% interest... thus making more sense NOT to use CPF... ↡ Advertisement Link to post Share on other sites More sharing options...
5936 1st Gear April 18, 2011 Share April 18, 2011 I settled loan in full a few years after moved in. would have redemned it from day one. Now that I had no housing, I am not stress over it, and see my cpf savings glow monthly. Link to post Share on other sites More sharing options...
Throttle2 Supersonic April 18, 2011 Share April 18, 2011 Hi there, Assuming you have just bought a resale HDB flat and have sufficient CPF to clear off your loan at one go, would you do it at the prevailing market situation? What are the plus and minus in doing so? Please comment. Thank you very much. Regards, Bro, dont wait any longer. Clear it. Considering standard singaporean middle age man circumstances, no minus lah, all plus.... Go for it. Link to post Share on other sites More sharing options...
Throttle2 Supersonic April 18, 2011 Share April 18, 2011 Best is to pay everything in CASH!!! But easier said then done. Wah, I like your style...... Link to post Share on other sites More sharing options...
Chengwh492 Clutched April 18, 2011 Share April 18, 2011 use HPS to protect the unpaid sum. no point paying since u can use the $ in cpf for other stuff. pay liao u lppl stuck with the inflated asset. the property market is not going to go up forever. once sheet happens, foreign cash outflow, all property goons who go on mortgage will suffer big time with negative equity of the inflated asset. with HPS insurance on ur hdb, if u die, its free for ur family to stay after u die. also note, bank interests in sinkieland never exceed 2.6% in recent years. cpf $ is still $, depend on how u see it. on the easy side, u can topup ur parents retirement account and reduce the allowance u gave them. the cpf retirement account will pay out to them every month. isnt that consider can cashing out cpf? Link to post Share on other sites More sharing options...
Sosaria Twincharged April 18, 2011 Share April 18, 2011 but nowadays many bank offer below 2% interest... thus making more sense NOT to use CPF... I think the banks offer attractive rates only for limited time, say, 3 years. Subsequently it goes up to market rate of 4%+. But you'll be advised to re-finance the loan with another bank, anyway, at the end of 3 years, to continue enjoying favourable rates. However, this will involve some research and paperwork on your part. Link to post Share on other sites More sharing options...
Sosaria Twincharged April 18, 2011 Share April 18, 2011 Hi there, Assuming you have just bought a resale HDB flat and have sufficient CPF to clear off your loan at one go, would you do it at the prevailing market situation? What are the plus and minus in doing so? Please comment. Thank you very much. Regards, It's always best to clear the loan as soon as possible, though, as somebody has pointed out, you're not allowed to clear off the entire loan with CPF. A fully paid up HDB flat gives you the advantages of (finally) being able to accumulate your CPF, and greater flexibility in property transactions, taking up loans, etc. Link to post Share on other sites More sharing options...
Stanong11 Clutched April 18, 2011 Share April 18, 2011 (edited) Accrued interest ultimately is paid to yourself, it is to calculated how much interest you would have accumulated if your money is saved in the CPF account. Don't be deterred by it. Edited April 18, 2011 by Stanong11 Link to post Share on other sites More sharing options...
Alghojo Neutral Newbie April 18, 2011 Share April 18, 2011 Once your loan reach the CPF limit, you got to pay cash to top up the loan ... FYI, not many people aware of the limit, it is called CPF withdrawal limit. Exactly. this is what i'm referring to from my earlier post. Link to post Share on other sites More sharing options...
Alghojo Neutral Newbie April 18, 2011 Share April 18, 2011 I settled loan in full a few years after moved in. would have redemned it from day one. Now that I had no housing, I am not stress over it, and see my cpf savings glow monthly. Lim Swee Say: Every month, when I receive my CPF statement, I feel so rich and the best part is, I know the CPF money won Link to post Share on other sites More sharing options...
Chemmie78 Clutched April 18, 2011 Share April 18, 2011 there is difference between good debt and bad debt and of course we have to look at the interest rate differential between what TS is getting from his CPF and the interest on his loan.... personally it depends whether TS intends to stay in his hdb before the tenure of his loan or not....can save abit on lawyer's fee.... Link to post Share on other sites More sharing options...
Itsec 2nd Gear April 18, 2011 Share April 18, 2011 IMHO...settle in full if u confirm staying there for good... if not just let it sits in CPF if not when you sell the flat..you will need to pay back accured interest into CPF.....which i rather take cash for renovation hmm.. i dont undertsand.. u mean i need to pay back the interest despite i opt to take shorter loan... what i did is to shorten my loan form 25 yrs to 4.5 yrs... Please advise Link to post Share on other sites More sharing options...
Stanong11 Clutched April 18, 2011 Share April 18, 2011 hmm.. i dont undertsand.. u mean i need to pay back the interest despite i opt to take shorter loan... what i did is to shorten my loan form 25 yrs to 4.5 yrs... Please advise The interest that we've been mentioning is your cpf accrued interest. Currently pegged at 2.5%. If you leave it in CPF, you would have earn that percentage of interest. Loaning it from your CPF account means you have to pay back with 2.5% interest rate. But it will still be your money cause it is going back to your CPF account. When you are able to withdraw, you'll withdraw principal plus interest. Link to post Share on other sites More sharing options...
Stanong11 Clutched April 18, 2011 Share April 18, 2011 Currently, there's 2 party involved. HDB and CPF board. You loaned from HDB at 2.6 percent interest rate and use your CPF monies to pay HDB. But withdrawing from CPF board means you will lose out in the interest rate which is currently pegged at 2.5%. So if one day you sell your house, (and you have not reach the eligible age to withdraw your CPF), you need to put back the money which you withdraw from CPF right? So when you return the monies back to your CPF account, they will calculate how much interest you would have "earned" for the whole duration, and you put it back together with the principal sum. But if you sell your house at a loss, then it is a different story. Link to post Share on other sites More sharing options...
Itsec 2nd Gear April 18, 2011 Share April 18, 2011 Currently, there's 2 party involved. HDB and CPF board. You loaned from HDB at 2.6 percent interest rate and use your CPF monies to pay HDB. But withdrawing from CPF board means you will lose out in the interest rate which is currently pegged at 2.5%. So if one day you sell your house, (and you have not reach the eligible age to withdraw your CPF), you need to put back the money which you withdraw from CPF right? So when you return the monies back to your CPF account, they will calculate how much interest you would have "earned" for the whole duration, and you put it back together with the principal sum. But if you sell your house at a loss, then it is a different story. this is very clear... hmm... i thought i need to maintain a min. sum and i can 'play' with my money the way i want it to be... i didnt know i need to pay back the principal sum + interest even i sell my house... in other words, only in certain conditions and resticted circumstances... i have a say on my money such as investment or housing loan.. no matter what... i had to 'pay' back cpf in which i already 'parked' my hard-earn $$$ inside... The way cpf works.. is way better than any banks in the world leh.... Link to post Share on other sites More sharing options...
Mllcg 3rd Gear April 18, 2011 Share April 18, 2011 (edited) settle fully. that way IF u decide to sell house, u also can get cash. no need put back into CPF. Edited April 18, 2011 by Mllcg Link to post Share on other sites More sharing options...
F1f2 Clutched April 18, 2011 Share April 18, 2011 hi all, actually until now, i still not understand, why we need to pay the interest, if we use cpf to pay the hdb loan. is cpf is not my own money? Link to post Share on other sites More sharing options...
Itsec 2nd Gear April 18, 2011 Share April 18, 2011 hi all, actually until now, i still not understand, why we need to pay the interest, if we use cpf to pay the hdb loan. is cpf is not my own money? bingo!!! we share the same thoughts [laugh] ↡ Advertisement Link to post Share on other sites More sharing options...
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