“Do I need to top up cash to pay back my CPF accrued interest if my profits from selling my house are less than the accrued interest?”
The answer is, NO, as long as you sell your home at or above current market value.
Illustrations are below
Accrued Interest ($20k) > Profits from Selling of House ($15k)
Profits will ALL be used to cover the accrued interest.Any accrued interest not repaid by the profits will continue to accrue interest ($5k will continue to accumulate interest).You DO NOT NEED to TOP UP CASH to cover the difference ($5k) unless you wish to. Recommended Read: What Happens After I Join A CPF LIFE Plan?
Accrued Interest ($20k) = Profits from Selling House ($20k) Profits will ALL be used to cover the accrued interest.No cash profit will be given to you.Scenario 3:
Accrued Interest ($20k) < Profits from Selling House ($30k)
Profits will be used