As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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Friday, 24 March 2017

Taking HDB Housing Loan : Wipe Out CPF OA Or Max CPF OA to SA???

Here is the Maths!

Know the difference

Choose what is right for you as couple. 

Start talking. LOL!

Trust but verify - SMOL

Source --> Enquiry on Monthly Installment


  1. Question is always about who are you? Saver, investor, or one thing less to worry kind of investor like me.

  2. CW,

    It's always start with Who Am I?

    If I don't know how to invest or suck at it, then the savings route of compounding INTERESTS would be more suitable.

    If I am investment savvy (that means got track record and not based on hope or plan), then I can take advantage of Other People's Money and use leverage to enhance my compounding RETURNS ;)

    Your mileage and my mileage different. Trying to be someone else usually end in tears...

    1. Are you Grasshopper or Ant?

      Ant always like worry more?

      Ownself check ownself. How often you worry and lost sleep at nights when something bad happen?

    2. For married couple; also need to consider your spouse is Ant or Grasshopper?

    3. Ha! Ha!


      Can or not?

      In business world you call such a person "sleeping partner".

      There is some advantage; there is peace in the household when my portfolio hit the bottom. (loss 50%).

  3. CW,


    I've become more black and white mancho - can invest or not?

    You've become more grey grey feminine - did I leave the kettle on?

  4. For many of the questions ppl like to ask, very often the answer is "it depends", and ppl don't like this answer.

    I don't like to wipe my OA. Neither do I like to trsf OA to SA. I would rather owe $100k and have $100k in OA. The impt question is, why?

    1. HDB LOAN?

      During my time, i remember i had to use my all my OA before i could take a HDB loan.

      i could not remember whether i had to use SA 1st too.

    2. Q

      Do I need to wipe out my CPF Ordinary Account (OA) savings before taking up an HDB concessionary loan to buy a resale flat?

      Yes, it is HDB’s requirement for you to utilise your CPF OA savings entirely before granting an HDB concessionary loan.

    3. HDB loan :) When I bought my apartment, my OA was so little (under $20k) so there was no way I could 'lock it somewhere else' and prevent any of it from being wiped.

      If I had a choice now, I would utilize a portion of it (CPFIS etc) to prevent a full wipe. To me, the cost of borrowing is 0.1% (money in OA 2.5% vs money loaned from HDB 2.6%), and it buys me flexibility to use the OA money when I want to.

    4. Member can only preserve up to 35% and the rest of it still wipe off which many members are not too happy about it.

      Those "happy" days pre AFC when members could hoot what they like in the stock market with no restriction. They could even "happily" take their profits and spent "happily" on whatever they wanted but after AFC ; this "happy" CPFIS scheme have made many "happy" members to become misery retirees. Few of them were sitting in the same office level as me as ex-colleagues. When I mentioned this story at the CPF talk; quite a number of participants burst into laughter. Now what had actually happened like a laughing story. Spent winners out of CPF OA but kept losers in CPF OA for retirement.

    5. Ya lo!

      Quite ridiculous don't you think so?

      i mean my wife can withdraw all her OA and SA money after RA amount has been fulfilled many years ago, yet still only allow to invest up to 35% of OA from that day till this day.

      So as long as you want to park your money in OA and SA to enjoy the risk free interest, no matter at what age after 55, you still must follow CPF rules and regulations lol.

      What logic is that?

      Go No Go Logic?

      No exception logic?

    6. "They could even "happily" take their profits and spent "happily" on whatever they wanted....."


      i can vouch for what CW said above.

      Yes i remembered i took out about 30K and my wife took out 100 or 130K. from CPFIS's profit.

      That was the first time we dare to pamper ourselves at some moderate priced restaurants.

      Not forgetting we were already in our early 40s.

    7. 1st time i made so much money you know!

      Of course must spend some ma.

    8. Close CPFIS account and then no more Govt biz. You can go and do what u want without dragging CPF name down with your CPFIS. LOL!

    9. i did.

      i closed everything at 55.

      Then Alamak!

      Suffer QE bank's FD rate lol; until now.

      So will never close wify's CPFIS account until Bank FD rate and inflation shoot to the sky.

      That was under President Reagan's time or who?

      Don't ever say never in life!

  5. Notice Paper No. 119 Of 2016 For The Sitting On 24 March 2016
    Question No. 215 For Oral Answer

    MP: Mr Zainal Sapari

    To ask the Minister for Manpower whether HDB can reconsider allowing HDB home owners who do not have sufficient savings in their CPF ordinary account to utilise their CPF special or retirement accounts to manage their home mortgage arrears.


    1) CPF members can use their Ordinary Account (OA) savings for the downpayment, monthly instalments and mortgage arrears for their housing purchase. The Special Account (SA) savings are generally preserved for members’ retirement needs, and cannot be used for housing purposes.

    2) When members turn 55, a Retirement Account, or RA, is created. Monies from the OA and the SA are transferred to the RA up to the Full Retirement Sum. The OA continues to exist even after the RA is created. Any remaining OA balance, as well as new contributions to the OA after the age of 55, can be used to meet housing needs. In addition, any RA savings in excess of the Basic Retirement Sum can also be used for housing purposes.

    3) HDB proactively helps flat owners manage their arrears early. If their financial difficulty is temporary, HDB will consider reducing or deferring their instalments to help them resolve their arrears. For flat owners who can no longer afford to keep their flats, HDB will help them explore more options, including right-sizing to a more affordable flat.

    4) For CPF members who do not have sufficient OA savings to meet their housing needs, we have exercised flexibility where cases merit it. For example, we have, upon appeal, allowed CPF members to use their RA savings that originated from their OA to pay for their housing, even if their RA savings are below their Basic Retirement Sum.

    5) Overall, we need to strike a balance between allowing CPF members to use their SA and RA savings for housing needs and safeguarding such savings for their retirement needs, so as not to compromise their retirement adequacy.


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