After waiting for 4 long years, Heartland Boy will finally be able to collect the keys to his BTO. Not yet, but soon enough for him to start pondering about keys collection. Since he is likely to apply for a HDB concessionary loan, his thoughts inevitably swing over to the prospect of HDB wiping out the entire balances in his CPF Ordinary Account (‘OA’). This is the process whereby HDB will deduct whatever balances remaining in the CPF OA, thereby reducing the mortgage quantum, before granting the applicant a HDB loan.

After doing some research online, Heartland Boy realises that there are several ways to prevent this from happening. The trick is to utilise the CPF Investment Scheme to temporarily divert the CPF OA funds elsewhere before HDB’s notice letter on the collection of keys arrives. Once the HDB concessionary loan is approved and processed, the homeowner can transfer …