One article showed up in my feed one fine afternoon: Why you should not pay for your HDB with CPF

Naturally, I clicked because I am a believer in paying for your HDB with CPF. Maybe I might get converted to the pay-with-cash camp.

The Summary of The Article “Why you should not pay for your HDB with CPF.”

The main argument for paying with cash instead of CPF is that the money in CPF generates interest. By choosing to pay with CPF, you are forgoing 2.5% per year in interest.

To prove his point, the author used an example of a couple with a median salary of $4,437 who bought a BTO for $520,000 and sold it eight years later for $700,000. Their monthly OA contribution is $1,000 each.

To finance their flat, they had to take up a loan of $403,500 with a monthly payment of $1,810. The author then calculated the scenario where the couple:

  1. Only used CPF to pay for their housing loan