Originally Posted by
Squall8888
Cash on hand is priceless. Assuming your monthly installment is 3k which is quite a lot, how much interest do you expect from 36k yearly? Around $500 based on 2.6% straight line repayment. For example, you can't use cpf to pay for medical bills (medisave is as good as useless in most cases), shares, opportunity to buy something for a quick gain etc. And many more. But if you have low risk appetite and don't think you will ever invest or fall sick or heavily insured, then you use your cpf to gain 2.5% returns.