First things first, its is applicable to all CPF members who have use funds in their CPF Ordinary Account (OA) to pay for down payment and monthly mortgage loan installments for their house.
It is the interest amount that CPF members would have earned in their OA, had they not withdrawn for their housing needs.
With CPF’s goal to ensure that we have sufficient retirement savings, when the property is sold, owners will need to return the drawn down principal amount PLUS the Accrued Interest, back into your CPF OA.
This amount may include the following:
- The initial down payment that was withdrawn from our CPF account
- The monthly installments that was withdrawn to pay our mortgage loan
- Any HDB housing grant(s) that we received for our HDB flat
- The CPF Accrued Interest on all the above
Note: Our HDB housing grants are given to us via our CPF when we buy our BTO or HDB resale flat.
This means that we will start to accumulate CPF Accrued Interest on these funds as well.
Now, with this understanding, let us take a good look into this policy and learn how to maximize to our best.