Can Ask Hdb Not To Wipe Out Cpf As 1St 20K Earns 3.5% Interest?

[stealth0128 2]

We applied for BTO and will be getting our keys next year. Is it possible to get HDB to do this? If so, does it applicable if I take bank loan?

I don't see much cons in doing this, please advise in case I overlooked anything. Any information is welcomed.

[therat 18]

if take HDB loan, 100% confirm wipe out

[kooky 2]

In another words, if you took up a bank loan (which is similar in my case), you can tell the banker how much you want to be taken out from your CPF account and they will proceed with your instructions accordingly.

[dandelion1976 5]

There's a "Trick" but probably it's no longer applicable to your situation.

Before applying for your HDB loan Eligibility (which you probably would have done so), any $$ that's been invested outside of your CPF Account (e.g. invested in Unit Trust, Stocks, Gold) will not be considered and it will not be wipe out. Only balances in your CPFOA that's still in your CPF account will be "locked" and this amount will have to be fully utilised before HDB grant you the balance.

So the "trick" is to invest the amt that you wanna keep (as buffer for HDB loan repayment, in case we lost our job) thru a cheap investment platform (low up front charges, check out Fundsupermart) into some very low risk, short duration bond funds. You can then keep that amount and return them to your CPFOA account as and when needed, AFTER disbursement of your HDB loan.

My 2 cents.