HDBCPF Accrued Interest: Why You Should Not Pay For Your HDB With CPF

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  • November 1, 2019
  • 5 min read


Sean has a writing experience of 3 years and is currently with Stacked Homes focused on general property research, helping to pen articles focused on condos. In his free time, he enjoys photography and coffee tasting.


What if I choose to invest my other savings into higher-yielding instruments like stocks? Wouldn’t it be better to pay with CPF then since I get to invest what woudl’ve been the mortgage payment into better earnings over the years?

Stacked Homes
Stacked Homes

Hi Peter. Yes, that is true. We’ve written this from the perspective of a homeowner looking to sell their BTO within 8 years. With that kind of horizon, while considered “long-term” enough for stocks to return a greater value than CPF, it’s also risky considering how a market turmoil can occur just before you wish to sell, like in the current Covid-19 situation. If you pay with cash, upon selling your HDB, you will receive cash in hand which is needed for the next home’s deposit (assuming you are upgrading to a private property). If however staying in the BTO… Read more »

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