The Visionaire EC

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YuoriFighter

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samliucs said:
Pay later can earn interest from cpf meh
Click to expand...

True if its for long term... if 1 or 2 years.... it dosen't save much.

The interests can grow quite a hefty sum if it continues to be 0.8%-1.1% difference (HDB interests 2.6% vs estimated bank interests at 1.5%-1.8% now) for >10years... then i agree to let your CPF sit & grow interests.

But nobody can predict this. Last time my bank loan was 2.6% lock in 2 years, till floating rate, then it increased close to 4%!

If i you have been using more CPF to pay it, means i have lesser capital loan for that hefty interests isn't it?

4% is just a little episode until CPF board send me a statement informing me, you have reached your housing loan withdrawal limit. Even u have hundred thousands in CPF account, u are not allow to touch it, have to service the rest of the loan by cash to pay bank monthly (interests of 4%!)

See, if u don't use up your CPF, when u reach the limit, u want to use also cannot use... its for retirement plan.

So my 2cents thought, if you have a combine $500K in CPF, use $450K, balance $50K is not for growing the interests, is for in case u out of job still can service the home loan for a certain period.

Don't be like using $300K, keep $200K for interests grow. Because by the time u want to use this $200K, government will drop u a letter say u have reach the withdrawal limit like me.

So for me, since i cant use CPF, must pay cash monthly+interests to bank, then i chose to one shot pay bank full amount(so no more interests) to redeem back my title deed.

Have been debt free since then... but now itchy hand.. getting EC... & continue the story again...... LOL. :s22:
 
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flashover

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YuoriFighter said:
True if its for long term... if 1 or 2 years.... it dosen't save much.

The interests can grow quite a hefty sum if it continues to be 0.8%-1.1% difference (HDB interests 2.6% vs estimated bank interests at 1.5%-1.8% now) for >10years... then i agree to let your CPF sit & grow interests.

But nobody can predict this. Last time my bank loan was 2.6% lock in 2 years, till floating rate, then it increased close to 4%!

If i you have been using more CPF to pay it, means i have lesser capital loan for that hefty interests isn't it?

4% is just a little episode until CPF board send me a statement informing me, you have reached your housing loan withdrawal limit. Even u have hundred thousands in CPF account, u are not allow to touch it, have to service the rest of the loan by cash to pay bank monthly (interests of 4%!)

See, if u don't use up your CPF, when u reach the limit, u want to use also cannot use... its for retirement plan.

So my 2cents thought, if you have a combine $500K in CPF, use $450K, balance $50K is not for growing the interests, is for in case u out of job still can service the home loan for a certain period.

Don't be like using $300K, keep $200K for interests grow. Because by the time u want to use this $200K, government will drop u a letter say u have reach the withdrawal limit like me.

So for me, since i cant use CPF, must pay cash monthly+interests to bank, then i chose to one shot pay bank full amount(so no more interests) to redeem back my title deed.

Have been debt free since then... but now itchy hand.. getting EC... & continue the story again...... LOL. :s22:
Click to expand...

Thanks for sharing. I am not using any cpf for downpayment. Aiming to use the cpf to service the monthly loan. Is this wise?
 
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YuoriFighter

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flashover said:
Thanks for sharing. I am not using any cpf for downpayment. Aiming to use the cpf to service the monthly loan. Is this wise?
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Its really up to individual. But i thought downpayment will be wipe up all the cpf? Unless u buy EC or DBSS u can chose how much cpf to withdraw.
 
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grix17

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YuoriFighter said:
Its really up to individual. But i thought downpayment will be wipe up all the cpf? Unless u buy EC or DBSS u can chose how much cpf to withdraw.
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There is no need to wipe out CPF. Those cash-rich folk can either pay up using cash, or can push their budget to get the top-end EC units. The rule is maximum 80% CPF.
 
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flashover

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YuoriFighter said:
Its really up to individual. But i thought downpayment will be wipe up all the cpf? Unless u buy EC or DBSS u can chose how much cpf to withdraw.
Click to expand...
Buying EC. Aiming to keep all my cpf proceeds and not use it for DP but for installment instead.
 
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YuoriFighter

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flashover said:
Buying EC. Aiming to keep all my cpf proceeds and not use it for DP but for installment instead.
Click to expand...

Oh.. sounds logical now.
Bcos people kept saying wipe out all cpf when getting BTO..
So i see its good to service this way.
No need to pay bank loan interests & can earn CPF interests with lump sum balance in there, while servicing instalment provided your monthly CPF contribution still coming in. Triple WIN for u!
 
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Ehelpers

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Never see it from this angle before. Thanks for sharing

YuoriFighter said:
Oh.. sounds logical now.
Bcos people kept saying wipe out all cpf when getting BTO..
So i see its good to service this way.
No need to pay bank loan interests & can earn CPF interests with lump sum balance in there, while servicing instalment provided your monthly CPF contribution still coming in. Triple WIN for u!
Click to expand...
 
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DarkAlucard

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Is stack 03 near rubbish chute?
Btw i heard some ppl say after selling existing flat, there must be 1 lump sum of cpf lock under retirement fund and cannot be use :(. Is it true?
 
derong07

derong07

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DarkAlucard said:
Is stack 03 near rubbish chute?
Btw i heard some ppl say after selling existing flat, there must be 1 lump sum of cpf lock under retirement fund and cannot be use :(. Is it true?
Click to expand...

part of the CPF funds that are returned to ur Ordinary Account upon selling ur property may be locked in the RA if u are 55yrs old and above.

"The Retirement Account (RA) is created at age 55 for members to set aside their retirement sum, which will provide a regular income from their payout eligibility age for retirement expenses. Depending on your desired CPF LIFE monthly payout and your CPF balances, you can choose to set aside the Basic, Full or Enhanced Retirement Sum. The retirement sum will be transferred from your Special Account and Ordinary Account." - from CPF website
 
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