In the guest blog by Klein recently, he offered his reasons why we should not repay our HDB housing loans too quickly. One of the reasons is that we would be losing more in interest income from the CPF-OA than we would be saving by avoiding the 2.6% HDB home loan interest rate.
Now, this is unconventional thinking, at least to me, which seems to make sense. This was another reason for me to share it here in ASSI with everyone. Of course, it does not mean that I think it is the way to do things but it does offer an alternative which is worth considering.
In my reply to a reader on this matter, I have offered some numbers which could make things a bit clearer, I hope.
Let us assume that a person had an outstanding HDB home loan of $100,000 which was meant to be repaid ......