Hdb Accured Interest

[celong27]

Hihi all wish everyone a happy new year 2024. May I know why most property expert say to use as little cpf as possible or not even try to use at all to clear hdb loan please? If thats the case for those with a lot of hdb loan won't it take very long to clear off completely?

 

[addict951]

Mods, pls combine all of ts’ threads to a mega HDB loan and interest thread.

 

[kennycai]

Because when you sell your hdb,you need to repay the amount taken out from your + ur spouse cpf with an annual interest rate of 2.5%

Aka as if your cpf money has not been withdrawn for ur ppty needs.

The compounding n 2.5% interest is not small amt

 

[cosmothecat]

Because when you sell your hdb,you need to repay the amount taken out from your + ur spouse cpf with an annual interest rate of 2.5%

Aka as if your cpf money has not been withdrawn for ur ppty needs.

The compounding n 2.5% interest is not small amt

If you stay and not sell, then no difference

 

[likevegetable]

Acheli, anybuttie go and pay back to CPF?

 

[mooseolly]

Use cpf to pay house better than use cash. You can invest your cash to earn more money.

 

[celong27]

Icic thanks all for reply cos my first priority is to asap clear of all 65K hdb loan with cash and cpf all the way want to be secured until I KO by renting out rooms all the way

 

[Ah-Pin-Kor]

Hihi all wish everyone a happy new year 2024. May I know why most property expert say to use as little cpf as possible or not even try to use at all to clear hdb loan please? If thats the case for those with a lot of hdb loan won't it take very long to clear off completely?

there's a limit to how much cpf you can use for housing. you need to read up more on HDB website.


Read HWZ Forum Rules iOS version!

 

[dilphinus]

Hihi all wish everyone a happy new year 2024. May I know why most property expert say to use as little cpf as possible or not even try to use at all to clear hdb loan please? If thats the case for those with a lot of hdb loan won't it take very long to clear off completely?

Becos HDB interest is 2.6%. You put in bank can get how many % interest? Like what some people have told you, please don't invest. So if you don't invest and don't get returns higher than 2.6%, then please pay off your HDB loan asap lah.

Also if you have purchased the HDB with your spouse, under the HPS, if you pass away or become seriously ill or disabled before paying off the HDB loan, half the outstanding home loan amount is covered immediately. It means your co-owner(s) do not have to worry about keeping up with your share of payments and risk losing the flat.

 

[jeffprobst]

need payback cpf interest. dunno why need payback when it is our money. or is it?

 

[celong27]

I have no spouse got it under resale single scheme. 42 this year. Anyone have fully paid their hdb and have more or less can survive on their room rentals already?

 

[Hakuna Matata]

The accrued interests will go back to CPF when you sell your flat. If you are not selling, just let it be ba. Mine is 20+K and it keeps rolling.

 

[BennyQ]

Also have to return back to cpf your grant money with accrued interest. Cos grant money was given to your cpf account before u took it out to pay for the flat. Basically means the sooner u pay the better.

 

[lls0101]

there's a limit to how much cpf you can use for housing. you need to read up more on HDB website.
Read HWZ Forum Rules iOS version!

I received a letter from the CPF last month (Dec 2023) that the amount of CPF I used for HDB is approaching the limit and will hit the limit by 2024 Dec. Once the limit is hit, there is a possibility that I will no longer utilise the CPF for HDB loan and I have to fork out cash.

But also stated in that letter is that if I have achieved BRS in my CPF, I still can continue to service the HDB loan with CPF, even if the limit is exceeded.

So it's not too big of a concern for most people since they will have accumulated a decent amount in their SA before they actually hit that limit. Please take note this applies to resale flats.

For BTO, I understand there is no valuation limits..

Also the above 2 cases applies to HDB loans. I'm not familiar with bank loans.

 

[euro2012]

pay faster lesser interest to pay later if u want to change house..

 

[EdenHazard]

Hihi all wish everyone a happy new year 2024. May I know why most property expert say to use as little cpf as possible or not even try to use at all to clear hdb loan please? If thats the case for those with a lot of hdb loan won't it take very long to clear off completely?

Who are these "experts"?

 

[celong27]

Hihi thanks for all valuable advices may I know how to see whether at least I have hit brs please? Under cpf I can see I have used 199K cpf and around 15K accured interest

 

[ctstalin]

Who are these "experts"?

Property agents lor

 

[Raelight]

Cpf in the ist place is meant for retirement and not use to pay house.

So the property agent is merely Jiak liao bee. Parroting govt policy nka.

 

[virtualape]

Accrued interest is 2.5% of what you took out from cpf oa to pay for your property.

When you sell, the accrued interest and principal will be returned to cpf.

Log in to cpf can see the actual amount.

There is option to repay the accrued interest iirc so you have more oa to earn 2.6%. but since fds are above this rate now, it's better not to repay the accrued interest at this moment