Forum: Bouquets

Sound advice in Invest column

I always find Invest editor Tan Ooi Boon's Sunday columns disbursing financial advice helpful.

A recent column on using cash to pay for one's housing loans was very educational, especially for young couples who do not have heavy family commitments (Cutting down the use of CPF for properties, July 12).

With most bank interest rates at less than 1 per cent and mortgage rates below 1.5 per cent, one should leave one's Central Provident Fund (CPF) Ordinary Account alone to earn interest of 2.5 per cent.

Unless a young couple have a huge financial commitment, they should consider using cash to pay for their housing loans. Many people want to use their CPF to pay for their housing loans and use their cash for investments in areas like the stock market, which could be dicey.

Foo Sing Kheng

A version of this article appeared in the print edition of The Straits Times on July 23, 2020, with the headline 'Bouquets'. Print Edition | Subscribe