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

  1. #1
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    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
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    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
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    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
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  4. #4
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    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
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    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
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    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.

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