Must I Top Up Cash To Pay Back My CPF Accrued Interest If I Sell My House?

"Do I need to top up cash to pay back my CPF accrued interest if my profits from selling my house are less than the accrued interest?"
The answer is, NO, as long as you sell your home at or above current market value.
Illustrations are below

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Scenario 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 accrue interest ($5k will continue to accumulate interest).
• You DO NOT NEED to TOP UP CASH to cover the difference ($5k) unless you wish to.

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Recommended Read: What Happens After I Join A CPF LIFE Plan?

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Scenario 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.

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Scenario 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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Selling Property Below Current Market Valuation
If the property is sold below the current market valuation, the seller(s) will be required to repay the shortfall in cash.

Example:
Property current market valuation: $450k
Sellers sold the property at: $390k
Sellers' CPF Principal + Accrued Interest: $400k

Because the property is sold at below current market valuation, the sellers are liable to repay the full $400k back into their CPF account.
The sellers will have to top up $10k in cash to cover the shortfall.
However, if the sellers have difficulty coming up with cash to cover the shortfall, they may write to CPF to request for a waiver - subject to approval.

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Recommended Read: CPF Account Effective Interest Rates

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