Using CPF to settle HDB Loan in full?

[Kelpie]

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,

[Whathefish]

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

[Yaloryalor]

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,

 

If you have no intention to use the CPF to buy another property then it may be good to jus pay off the loan. Stress free! haha..

[Alghojo]

I think u can't use 100% of ur cpf to pay for a resale flat. Read the Valuation Limit rule, u can only use up to VL using ur cpf.

[Joseph22]

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,

 

 

take a 30 years loan unless you are sure you will live in this flat until you are above the time to get your CPF re-drawer. (the lump sum one not the monthly one.)

[Kelpie]

I think u can't use 100% of ur cpf to pay for a resale flat. Read the Valuation Limit rule, u can only use up to VL using ur cpf.

 

Not an issue. enough to cater.

 

Regards,

 

 

[Ender]

I don't know how to invest with my cpf, so prefer to settle in one go for peace of mind.

[Soya]

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,

 

thot hdb require lesees to use up all their cpf b4 granting a loan?

[Kelpie]

thot hdb require lesees to use up all their cpf b4 granting a loan?

 

Not for resales, I thought, though I'm not a guru in HDB market.

 

Regards,

[inlinesix]

Depending on the principal & loan tenure, the saving might be huge enough for you to consider.

 

I took a 20 yrs loan in 2004 with principal sum of $250k. My saving on interest after paying down the outstanding principal once a year is more than $10k.

[Joseph22]

Not for resales, I thought, though I'm not a guru in HDB market.

 

Regards,

 

only applicable if you take loan from HDB.

 

if you take bank loan, even BTO you dont have to wipe out your CPF.

[Hosaybo]

maybe can take a bank loan @ prevailing low interest, but make sure there is no early or min redemption penalty.

[Soya]

Not for resales, I thought, though I'm not a guru in HDB market.

 

Regards,

 

if not compulsory to use up everything, keep it aside for other investment opportunities.

 

nothing worse than sitting on a pile of cash and close off liquidity when the hdb loan is cheap and almost risk-free.

[Hiphiphoray]

Actually it doesnt really matter its paid off or with outstanding loan.

 

Pay fully, you save on the loan interest.

 

But few ppl realise(or turn a blind eye to it), that the CPF ultise MUST be repaid in interest once yr flat is sold.

 

And drag over 20-30 years its not a small sum either.

 

The sales proceeds will pay to your very own CPF interest incured.........Siao!!!

 

As HDB prices rise, the more u have to fork out to pay your own interest in the future, the more CPF board will laugh all the way to the bank.

 

Win Win situation for HDB and CPF board and most importantly bo ciak(sure win) for our govt.

 

Best is to pay everything in CASH!!! But easier said then done.

[Kelpie]

Actually it doesnt really matter its paid off or with outstanding loan.

 

Pay fully, you save on the loan interest.

 

But few ppl realise(or turn a blind eye to it), that the CPF ultise MUST be repaid in interest once yr flat is sold.

 

And drag over 20-30 years its not a small sum either.

 

The sales proceeds will pay to your very own CPF interest incured.........Siao!!!

 

As HDB prices rise, the more u have to fork out to pay your own interest in the future, the more CPF board will laugh all the way to the bank.

 

Win Win situation for HDB and CPF board and most importantly bo ciak(sure win) for our govt.

 

Best is to pay everything in CASH!!! But easier said then done.

 

So if paid in full using CPF, one would save on the loan interest but still have to pack back the interest to HDB upon sales of flat.

 

So there is saving if the HDB/CPF interest is consistently lower than the Bank's interest rate. Is this the case right now?

 

Regards,

[Megaweb]

Not an issue. enough to cater.

 

Regards,

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.

[Joseph22]

So if paid in full using CPF, one would save on the loan interest but still have to pack back the interest to HDB upon sales of flat.

 

So there is saving if the HDB/CPF interest is consistently lower than the Bank's interest rate. Is this the case right now?

 

Regards,

 

over the span of 30 years, you will notice this funny trend.

 

you pay off everything with CPF, after 30 years, you incure more interested than when you take a 30 years loan.

 

did that with a excel sheet before.. you will be surprise.

[Stanong11]

Pay finish. HDB interest, 2.6% CPF interest, 2.5%. Let it acrued lor, still your money what. But you no need think about loan every month. When you sell, it still goes back CPF mah. Still your money.