Accrued interest

If I take grant and use own cash to buy HDB For example: The cost of a flat - $550000 HDB Grant - $40000 Cash - $510000 If I combine both and pay off on the day of purchase itself, will the HDB grant interest stop growing or continue to grow till I sell the house?

6 comments held Reddit says 12 on reddit ↗

u/OwnConsequence5078 1 2 days ago

I dont think u can take the grant and not use it
u/SuitableStill368 1 2 days ago

Grow.
u/mrmrdarren 1 2 days ago

According to https://ohmyhome.com/en-sg/blog/hdb-grant… Yes. HDB grant is subjected to accrued interest. But before that. I highly advise against using cash to pay for your entire flat... Cash can be used for so many more things like investments. OA can be used for selected few things. And the interest for housing is relatively low compared to ownself invest, so theres an arbitrage there. You dont have to be so scared of the CPF accrued interest problem de...
u/Capital_Dimension522 1 2 days ago

If you have so much cash then don't take grant. Next time bto still can be 1st timer. Anyway grant will accure interest 2.5% yearly till you refund back to cpf oa.
u/aquanat12 1 2 days ago

Don’t know what’s the big deal about, when you sell the house you have to pay back interest in your own OA. This prevents people from buying a house and being able to withdraw the interest early, preserving your CPF for retirement.
u/Walau88 1 2 days ago

Yes, grant is basically deposited into your CPF and then withdrawn for your house purchase. Hence there will be accrued interest when you sell. The more important question to you should be why you pay off the house using so much cash ? You could have taken advantage of low mortgage interests and invest the cash instead for higher returns.