Added new section for home page under banner.
Who is it for?
CPF members who purchase an HDB flat and take an HDB loan can choose to retain up to $20,000 in their Ordinary Account (OA), with the remainder going towards their housing loan payment.
Buyers taking a bank loan can choose to retain any amount of their OA savings.
Setting aside $20,000 in exchange for a peace of mind
When do I need to decide how much to retain in my OA?
Find out how retaining $20,000 affects your monthly instalments
Ben and Lexie are looking to take up a home loan. These are the assumptions that apply to both:
The maximum loan that can be taken: $470,000
Based on their respective decisions on the amount to retain in their Ordinary Account, their outstanding loans and monthly instalment are as follows:
With an approximate increase of $200 per household on the monthly instalment, Ben and his family enjoy better financial security, where they have enough OA to cover at least 15 months of housing repayments in times of hardships.
*Assumption: Initial OA balance: $20,000, interest rate is at 2.6% and the number of years for loan repayment is 20 years
**Assumption: The total monthly instalment is divided between 2 co-owners