CPF Housing Loan Accrued Interest - Calculation

[henrylbh]

@Lifeinmotion,
I am sorry to see your thread being hijacked but it is expected.

Unfortunately, i cant get the calculated accured int too. Full payment made on 12 Feb 2018, no instalment.

Interest on $158,806.35 from Feb 2018 to Dec = $3,639.31
Interest on $162,445.66 from Jan 2019 to Oct = $3.384.28

Accrued interest to Oct 2019 totalled $7,023.59 (due to rounding off)

 

[wutawa]

@henrylbh, same calc as mine but short of 5 cents

 

[BBCWatcher]

Interest on $158,806.35 from Feb 2018 to Dec = $3,639.31
Interest on $162,445.66 from Jan 2019 to Oct = $3.384.28

Accrued interest to Oct 2019 totalled $7,023.59 (due to rounding off)

I think we can overlook the 6 cents of rounding. And actually CPF is undercalling this, because an OA repayment today would only start earning interest from December 1. That is, November's (this month's) interest is already gone.

There's yet another interesting point, and I wonder if CPF does what I'm about to describe. By rights, it should. Some individuals who use OA funds for housing also lose some bonus interest. That happens if their MA+SA+RA totals less than $60,000 (or, in rare cases among older members, less than $30,000), meaning that OA dollars are/were contributing to bonus interest, to some extent anyway. Lost bonus interest is also lost interest, so shouldn't that be included in the accrued interest figure?

....But it probably isn't, which is too bad actually. And that lost bonus interest, if/when repaid, would need to be credited to the member's Special Account (or to his/her Retirement Account if age 55 or older).

 

[henrylbh]

Very close, but rarely can get to the last cent in most of my calculations on interest earned for the year on all CPF accounts including accrued interest. But close (difference of few cents) is good enough.

 

[dork32]

on man!! 6 cents different and people are complaining.

if the garmen wants to cheat for 6cents in 2 years, i will not curse them.

furthermore accrued interest in my own money.

 

[asianfish]

Interest on $158,806.35 from Feb 2018 to Dec = $3,639.31
Interest on $162,445.66 from Jan 2019 to Oct = $3.384.28

Accrued interest to Oct 2019 totalled $7,023.59 (due to rounding off)

@henrylbh, same calc as mine but short of 5 cents

which accrued interest calculators are you guys using?

 

[MikeDirnt78]

Guys try it out using XIRR.

I just tried both myself and wife CPF which were used for HDB.

My cashflow for CPF <-> HDB yielding 2.47% pa.

My wife's cashflow for CPF <-> HDB yielding 2.44% pa.

So in short, the calculations by CPF are quite accurate. The above rates are lower than 2.5% because of the difference in compounding period.

 

[MikeDirnt78]

Actually I deleted my older post in this thread because I had calculated wrongly at first.

If anyone is interested in my methodology, just tell me.

I will post again how you can calculate it using XIRR.

 

[Ilovehardwarezones]

Interest on $158,806.35 from Feb 2018 to Dec = $3,639.31
Interest on $162,445.66 from Jan 2019 to Oct = $3.384.28

Accrued interest to Oct 2019 totalled $7,023.59 (due to rounding off)

Hello Henry, i was trying to learn how to calculate the accrued interest myself but couldnt really calculate to get the number. Is there anyway i can calculate because it seems complicated.

 

[zoneguard]

Hello Henry, i was trying to learn how to calculate the accrued interest myself but couldnt really calculate to get the number. Is there anyway i can calculate because it seems complicated.

11/12*0.025*158,806.35=3,639.31
Interest accrued for 11 months in 2018.

(158,806.35+3,639.31)*10/12*0.025=3,384.28
Interest accrued for 2018 now compounded for 10 months in 2019.