There is this question that keeps bugging me which I seldom go and explore. And I believe it bugs some of you as well. If you purchase a HDB flat unit and take out a HDB mortgage loan, should you periodically put in more to pay off your mortgage?

HDB Loan Interest versus CPF Ordinary Account Interest

The common answer I get, and a conclusion I came to myself is: CPF Ordinary Account currently pays 2.5% per annum. HDB Mortgage Loan interest is 2.6% per annum. By paying off the loan, you are saving 0.1% per year the number of years you need to service the loan .

That does not look like a lot. Perhaps, it makes sense to drag it out longer.

0.1% shouldn’t make that big of a difference.

The dynamics here

Usually what I hear most Singaporeans do will be to take a …