Results 1 to 6 of 6

Thread: HDB flat paid fully with CPF is a big mistake?

  1. #1
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default HDB flat paid fully with CPF is a big mistake?

    Is it true that if we have paid fully for a HDB flat with CPF is a wrong move?...

    I was told by my relative that I should not have paid in full as he mentioned I have lost out on the insurance whereby if one of the owners passes away, the house will be free for the other owner...

    I believe what he meant was HPS?...

    But when I collect key that time, HDB wipeout all my CPF and no loan require...
    They did not ask me for a choice to use HDB loan...

    https://forums.hardwarezone.com.sg/homeseekers-homemakers-74/hdb-flat-paid-fully-cpf-big-mistake-5855684.html

  2. #2
    Join Date
    Jan 2014
    Posts
    120

    Default

    Depends on the age of buyer. If he's 40 and below, i think its a rather good move to pay in full and look to buy a second property as investment.

  3. #3
    Join Date
    May 2012
    Posts
    4,035

    Default

    HDB also not silly.

    How many people do we know manage to claim that insurance?

    If loan on, 2.6% loan applies. If fully pay off, forgo 2.5% interest. I see it as the 0.1% as the cost one pays for the HPS?

    Quote Originally Posted by Arcachon View Post
    Is it true that if we have paid fully for a HDB flat with CPF is a wrong move?...

    I was told by my relative that I should not have paid in full as he mentioned I have lost out on the insurance whereby if one of the owners passes away, the house will be free for the other owner...

    I believe what he meant was HPS?...

    But when I collect key that time, HDB wipeout all my CPF and no loan require...
    They did not ask me for a choice to use HDB loan...

    https://forums.hardwarezone.com.sg/homeseekers-homemakers-74/hdb-flat-paid-fully-cpf-big-mistake-5855684.html
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  4. #4
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by Luke65 View Post
    Depends on the age of buyer. If he's 40 and below, i think its a rather good move to pay in full and look to buy a second property as investment.
    Truth his LTV will be 75% instead of 45%.


  5. #5
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    HDB also not silly.

    How many people do we know manage to claim that insurance?

    Insurance is about people share the risk and the underwriter made some profit.

  6. #6
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    If loan on, 2.6% loan applies. If fully pay off, forgo 2.5% interest. I see it as the 0.1% as the cost one pays for the HPS?

    HPS benefit those with CPF saving, those without only don't need to worry about the loan.

Similar Threads

  1. Replies: 0
    -: 03-11-21, 12:04
  2. Replies: 0
    -: 18-09-21, 17:38
  3. once you've paid your loan...
    By doubleben in forum Finance and Legal
    Replies: 13
    -: 16-10-14, 00:53
  4. Are You Making a Huge Mistake By Upgrading Your Property?
    By Arcachon in forum Coffeeshop Talk
    Replies: 1
    -: 18-09-14, 15:11
  5. One mistake to avoid in property investment
    By blackjack21trader in forum Singapore Private Condominium Property Discussion and News
    Replies: 62
    -: 25-02-13, 17:17

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •