I know… I know…. With the current low interest rate environment of around 1.5% for housing loan, many of you must be thinking that I'm crazy to propose the use of your CPF OA, which is giving you 2.5%, to pay off the low mortgage interest. In fact, I was also thinking that people should take more loan now with the interest rate so low and keep more in their CPF OA until I did the Math..... I hope I get the Math right.

What the Math shows is that for certain scenario, we will be actually paying more interest for our 1.5% mortgage as compared with the 2.5% interest earned from CPF. Yes it sounds counter intuitive but bear with me and let's run through with an example below.

Say we need a $600,000 mortgage and we have $100,000 in our CPF OA. The 2 scenarios we have are,