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

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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.

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4 years ago

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
4 years ago
Reply to  Peter

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 forever till retirement is fine, it’s ok to let the interest snowball for decades – ultimately you don’t intend to sell, and when you do sell, it’s money in your CPF = your retirement fund anyway.

3 years ago

So… how do you see this happening for a couple that doesn’t have a $130k inheritance 5years into their careers?

I mean, seriously man. Just stumbled onto this website but I guess you guys aren’t exactly writing for the average Singapore much since the bulk of your articles focus on 1million dollar properties. And dayum, who knew that on a dual median income we can go from zero to buying a 2million dollar condo in 13years flat.

No but seriously, sans inheritance, how?

Stacked Homes
3 years ago
Reply to  Aivern

Hi Aivern! Thanks for your comment and for taking the time to read our articles. Regarding the $130K in 5 years, do you refer to the Singles article at ? In this article, we mentioned that it should take 9 to 11 years, not 5 years. 5 years is indeed far too short to save up this amount as you have pointed out.

Our editorial covers a range of topics including renting, interior and also HDB topics apart from our condo topics. We started this editorial with articles on en bloc in 2017-18 since few were covering it in detail. By stroke of luck, the en bloc cycle came, and since then our readers have given feedback ideas on the topics to write which you would find in our analysis section. Our condo reviews were also a result of a shortage of such content online, and since we began, we also received feedback on providing insights into other condos. As such our editorial continued to grow based on this spectrum of audiences. However, we also provide insights for those looking to get started in their first home (such as

As to the dual median income going from zero to 2m in 13 years, could you kindly let us know which article you refer to so that we can clarify your concerns here? Thanks!

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