One of the most important points of this is the usage of CPF vs loan to pay for the house.

I’m starting to have the idea that one should as best as possible pay off the loan as soon as possible with CASH.
Using CPF to pay for the HDB MIGHT not be a great idea.

*Special thanks to Robin for highlighting this*

Think about it.
Let’s say…
Every year we pay $10,000 using cash for our mortgage. We lose $200 to interest. Assuming 2% interest rate.
And if we use CASH. The story ends here.

But assume we use CPF to pay, like most of us do.
We use $10k CPF to pay our mortgage.
We lose $200 to interest.
BUT, we have to pay $10,250 BACK to CPF when we sell!!! Cos we have to pay ourselves the CPF interest.

Some may say, “Oh but your property will increase in value when you sell it.”
And my response to this will …