How Can HDB Upgraders Minimise the Impact of CPF Accrued Interest?
Many first-time home sellers in Singapore are at a loss on realising that their net profits from the sale of HDB flat are eaten up by accrued interest on CPF. Here's everything about CPF accrued interest and how HDB upgraders can minimise the impact of accrued interest: Accrued Interest in CPF Accrued interest is basically the interest you would have earned if you didn't withdraw your CPF savings to purchase a house. It is inclusive of all the funds withdrawn from the CPF Ordinary Account for the down payment and monthly instalments of your home. Calculation of CPF Accrued Interest In simple words, CPF accrued interest is the interest you would have earned if you kept the funds in CPF OA. Accrued interest is calculated at 2.5% per annum. For example, if you withdraw $200,000 and choose to be an HDB upgrader by selling your HDB flat after the MOP of five years, the accrued interest amount you need to pay back is: $2...