refund cpf used for housing

[maumu]

hey buds, is it wise given this interest climate to start refunding the cpf used for housing?

was thinking (i) can reduce accrued interest accumulated, and (ii) still growing at 2.5% interest, right?

 

[Imhthc]

Pardon my ignorance. Do we have a choice not to refund cpf for housing? Do u mean pay down ur mortgage?

 

[Kaypohji]

If ur money has no better place to invest, why not

 

[limster]

hey buds, is it wise given this interest climate to start refunding the cpf used for housing?

was thinking (i) can reduce accrued interest accumulated, and (ii) still growing at 2.5% interest, right?

This is the last day of the month, better do the refund if you haven't done so already! I'm doing $1k a month refund at the moment.

When market recovers and stocks become too expensive, I might increase the amount I refund to my CPF. I treat it as a long term bond with the option of using the money anytime to buy stocks/unit trusts.

 

[maumu]

Pardon my ignorance. Do we have a choice not to refund cpf for housing? Do u mean pay down ur mortgage?

not the same as paying down mortgage... it's to refund the amount used from cpf OA for housing, so that the accrued interest won't keep rolling on (@ 2.5%).

 

[maumu]

This is the last day of the month, better do the refund if you haven't done so already! I'm doing $1k a month refund at the moment.

When market recovers and stocks become too expensive, I might increase the amount I refund to my CPF. I treat it as a long term bond with the option of using the money anytime to buy stocks/unit trusts.

why must do it by last day of month, mate?

 

[limster]

why must do it by last day of month, mate?

to maximise your CPF interest. if you refund tomorrow, you lose 1 months' interest...

 

[wutawa]

If u plan to sell your hdb, this is a smart way of getting cpf, instead of yourself, to pay for the 2.5% int.

 

[maumu]

to maximise your CPF interest. if you refund tomorrow, you lose 1 months' interest...

thanks mate just wondering, if you return bit by bit ($1k a month), how you know how much you paying towards the principal amount and towards the accrued interest?

 

[a4973]

thanks mate just wondering, if you return bit by bit ($1k a month), how you know how much you paying towards the principal amount and towards the accrued interest?

Hmm I've been paying down monthly as well but don't see any real world reasons why one would need to know so?

 

[Dividends Warrior]

Just a general question.
Is it a must to pay the accrued interest? What happens if a person dun pay down the accrued interests?
Tks in advance.

 

[zoneguard]

Just a general question.
Is it a must to pay the accrued interest? What happens if a person dun pay down the accrued interests?
Tks in advance.

Only when you sell the property:
https://www.cpf.gov.sg/members/FAQ/...Housing Scheme&folderid=11482&ajfaqid=2185791

 

[a4973]

Only when you sell the property:
https://www.cpf.gov.sg/members/FAQ/...Housing Scheme&folderid=11482&ajfaqid=2185791

Or for above 55ers who want to use CPF board as CPF Savings Bank.

 

[BBCWatcher]

Or for above 55ers who want to use CPF board as CPF Savings Bank.

"Approaching" age 55 is fine, too. Plenty of people dump money in 3 year fixed deposit-like endowment plans, for example. If you're age 52, is it really any different plowing money into CPF OA? Not really. It's still an approximately three year lock, except 2.5% is currently better than what those 3 year endowment plans are offering.

That's not to say that either idea (an endowment plan, CPF OA repayment) is necessarily the very best available idea.

 

[polyglob]

hey buds, is it wise given this interest climate to start refunding the cpf used for housing?

was thinking (i) can reduce accrued interest accumulated, and (ii) still growing at 2.5% interest, right?

Early March I sold some stocks. Since then I've plonked about 100+k as housing refund back into CPF. I am 53+ so this is like a ~24 month FD at a very good rate that is not available elsewhere.

 

[flyboy]

Will be refunding $150K cash back to OA!

 

[Thoreldan]

Early March I sold some stocks. Since then I've plonked about 100+k as housing refund back into CPF. I am 53+ so this is like a ~24 month FD at a very good rate that is not available elsewhere.

I have the same plan when I am approaching 55. Will be refunding roughly 350k