When you take a housing loan from HDB, it will take all the money in your CPF Ordinary Account (OA) before giving you the loan. This is to reduce the loan quantum that you need to service. To avoid having an empty OA account, you’ll need to transfer some or all of the OA balance to somewhere else before you apply for the loan. One way is to invest in some bond or money-market unit trusts that will not drop too much in value while you’re holding them. But the key question is, do you want to leave some money in your OA account or clean it out? It depends on whether you have any need for the OA money in the future and your risk preference.

There actually isn’t a lot of approved uses for the OA money. Besides building up your retirement nest egg, you can buy properties, …