We went to do some research and asking and we got the answers for you!
The answer is below:
Yes! You can actually voluntarily choose to use your own money to pay back into your own CPF account the amount of money you used to buy your house.
It has become common for Singaporeans to know that CPF current charges an accruing interest (currently at 2.5% p.a.) on the amount in your Ordinary Account you use to pay for your house.
This accruing interest is not the interest you pay for borrowing money to buy your house.
This accruing interest is the interest you CONTRIBUTE BACK TO YOUR CPF in the future when you sell your house.
This is to make up the difference for what you could have in your CPF account IF you did not use it to buy your house.
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If you have spare cash, and unable to find a good place to save with higher interest rates, you can put it to cover your accruing interest.
By reducing the amount of CPF money you used to pay for your house, more of your money will end up earning the CPF interest (2.5% + 1%) instead of coming from the appreciation of your house.
If you sell your house in the future, the accrued interest going back to your CPF comes from the appreciation of your house value.
Your RIGHT Pocket transferring money to your LEFT Pocket - There is NO NET GAIN IN VALUE!
If you put more of your cash into your house, keeping your CPF money intact, then your CPF money can earn Interest from CPF instead of from your house.
CPF Pocket going into your Pocket - You GAIN money paid by CPF!
Of course, the big point is you should have spare cash that cannot earn interests in excess of CPF interest (2.5%+1%).
More information can be found in the link below under "General Information on Housing Matters".
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