HDB flat paid fully with CPF is a big mistake?

[Arcachon]

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?... https://www.hardwarezone.com.sg/img/forums/hwz/smilies/confused.gif

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

[Luke65]

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.

[Kelonguni]

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?


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?... https://www.hardwarezone.com.sg/img/forums/hwz/smilies/confused.gif

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

[Arcachon]

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%.

https://hecksrealty.com/wp-content/uploads/2015/05/LTV-table-2018.jpg

[Arcachon]

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.

[Arcachon]

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.