Pay back CPF or HDB first?

Sinkie

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Can we get the info online on how much we owe to ‘our’ cpf used for property including the accrued interest? Or need to write to them?

When u login to the cpf portal, u can see the amt of accrued interest
 

TheHeist

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Am I right to say that accrued interest on CPF savings used for housing is not a concern if one is able to reach current FRS in SA?
If this is the case, what are the benefits to use additional cash to pay CPF back the savings used for housing?
 
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henrylbh

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Am I right to say that accrued interest on CPF savings used for housing is not a concern if one is able to reach current FRS in SA?
If this is the case, what are the benefits to use additional cash to pay CPF back the savings used for housing?

CPF accrued interest should not be a concern cause it's still your money at the end of the day. It's the hdb loan interest that's gone for good.

If still got gap to top up CPF, I rather top up than pay CPF back the CPF savings used for housing.
 

GeraldineT

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Am I right to say that accrued interest on CPF savings used for housing is not a concern if one is able to reach current FRS in SA?
If this is the case, what are the benefits to use additional cash to pay CPF back the savings used for housing?

I think the concern is if u intend to sell the house.
Then the accrued interest would be rolling.
 

henrylbh

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I think the concern is if u intend to sell the house.
Then the accrued interest would be rolling.

Where is the concern? No doubt the accrued interest will go back to your cpf. You can still use it for the next purchase or withdraw it when you turn 55 after meeting cpf min sum.
 

GeraldineT

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Where is the concern? No doubt the accrued interest will go back to your cpf. You can still use it for the next purchase or withdraw it when you turn 55 after meeting cpf min sum.

Yes can use for the next purchase. But if the amount use in cpf + accrued interest is higher than ur sales of house. Then when u sell house for next house u don’t get any cash back. Might even need to topup.
 

BBCWatcher

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But if the amount use in cpf + accrued interest is higher than ur sales of house. Then when u sell house for next house u don’t get any cash back. Might even need to topup.
Top up to make your down payment on the next house? Sure, that's possible. It depends on what you're selling, what you're buying, what sort of mortgage (if any) you're taking out, and real estate market conditions.
 

GeraldineT

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Anyone can verify if at age 55.
OA $315,132.21
SA $282,355.31
MA $52k

Then after - FRS can cash out 416k?
 

LiteHouse

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Where is the concern? No doubt the accrued interest will go back to your cpf. You can still use it for the next purchase or withdraw it when you turn 55 after meeting cpf min sum.

After 1st flat sold... The proceeds all go back to CPF to cover the purchase flat price + accrued interest? If cannot cover sufficiently, means all returned to CPF? Then how to purchase 2nd flat? Use cash?
 

BBCWatcher

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Then how to purchase 2nd flat? Use cash?
Sure, cash works, as always. But even partially repaid CPF Ordinary Account funds are still available, except for any dollars that must be swept into a Retirement Account (to make up any shortfall there) at or after age 55.

The bottom line is that you can lose money on a house or in any real estate. Or, at the very least, the net appreciation, after all expenses, can certainly be less than CPF OA's 2.5% interest rate. Meaning the home wasn't a great investment, if you're measuring it that way. There are absolutely no guarantees that real estate will be a great or even mediocre investment, and this is all still real money, including your own CPF OA funds.

There's absolutely no requirement in Singapore to buy a home (freehold or leasehold), and you're not required to use your CPF OA funds if you do. Indeed, everybody buying HDB units is buying 99 year (or less) leaseholds -- everybody is renting. It's only a question of how long the lease is and what the payment terms are.
 
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hwmook

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Yes can use for the next purchase. But if the amount use in cpf + accrued interest is higher than ur sales of house. Then when u sell house for next house u don’t get any cash back. Might even need to topup.

There is no topping up needed when you sell your flat. You can use the OA returned to buy another house. It's really doesn't affect much. If you do not know where to invest your cash then you will consider paying back to CPF.
 

henrylbh

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Yes can use for the next purchase. But if the amount use in cpf + accrued interest is higher than ur sales of house. Then when u sell house for next house u don’t get any cash back. Might even need to topup.

That's unfortunate.

So? You rather use cash earlier (than later) and save on the accrued interest interest?
 

LiteHouse

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Sure, cash works, as always. But even partially repaid CPF Ordinary Account funds are still available, except for any dollars that must be swept into a Retirement Account (to make up any shortfall there) at or after age 55.

The bottom line is that you can lose money on a house or in any real estate. Or, at the very least, the net appreciation, after all expenses, can certainly be less than CPF OA's 2.5% interest rate. Meaning the home wasn't a great investment, if you're measuring it that way. There are absolutely no guarantees that real estate will be a great or even mediocre investment, and this is all still real money, including your own CPF OA funds.

There's absolutely no requirement in Singapore to buy a home (freehold or leasehold), and you're not required to use your CPF OA funds if you do. Indeed, everybody buying HDB units is buying 99 year (or less) leaseholds -- everybody is renting. It's only a question of how long the lease is and what the payment terms are.

The government is encouraging the elderly couples to downsize from their 5/4 room flat to a smaller 2 room flat. I was wondering if there is any chance that the elderly needs to top up cash since the proceeds of the sold flat have to all go back to RA account given the large amount of accrued interest compounded over the years.
 

Toni90

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The government is encouraging the elderly couples to downsize from their 5/4 room flat to a smaller 2 room flat. I was wondering if there is any chance that the elderly needs to top up cash since the proceeds of the sold flat have to all go back to RA account given the large amount of accrued interest compounded over the years.

Elders are not stupid. They know what they are doing. CPF always print out big big the accrued interest.
 

tangent314

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Anyone can verify if at age 55.
OA $315,132.21
SA $282,355.31
MA $52k

Then after - FRS can cash out 416k?


Only if you are age 55 this year.
Don't forget the BRS will increase with inflation over the years, so by the time you are 55 the FRS will be quite a bit higher.
 

GeraldineT

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That's unfortunate.

So? You rather use cash earlier (than later) and save on the accrued interest interest?

As it’d be my first bto. Yes I intend to use cash on the monthly installment of $700+/month which I find it still manageable.
 

GeraldineT

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Only if you are age 55 this year.
Don't forget the BRS will increase with inflation over the years, so by the time you are 55 the FRS will be quite a bit higher.

Ya. I know. That’s why I’m trying to do some calculations to make sure BRS is hit when I’m 55 27 years later.
 
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