Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Wednesday, 25 November 2015

Accrued Interest More than Profits from Selling of House

15:38 Posted by cheez No comments
Today's post if to answer if you need to top up cash to cover your housing loan's accrued interest should a shortfall occurs.
The answer is, NO.
Illustrations are below

MORE LINKS
Difference using Cash or CPF to pay Housing Loan?
What to Own during Rate Hikes?
Fine Print of CPF Money Withdrawal
5 Financial Things to do in your 20s
Singapore Finance Minister on Personal Finance Part 2
Repaying CPF Accrued Interest - Why?
Reducing CPF Housing Accrued Interest


1) Accrued Interest ($20k) > Profits from Selling of House ($15k)
  • Profits will ALL be used to cover the accrued interest.
  • Any accrued interest not repaid by the profits will continue to accrued interest ($5k will continue to accumulate interest that will require you to repay some time in the future).
  • You DO NOT NEED to TOP UP CASH to cover the difference ($5k), unless you wish to.
2) Accrued Interest ($20k) = Profits from Selling House ($20k)
  • Profits will ALL be used to cover the accrued interest.
  • No cash profit will be given to you.
3) Accrued Interest ($20k) < Profits from Selling House ($30k)
  • Profits will be used to cover the accrued interest.
  • Excess profits will be given to you in cash ($10k).

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