Someone once suggested that when buying HDB, it is best that the
monthly instalments come entirely from the CPF account - this is
provided that one has enough monthly CPF input to pay for the
monthly instalments.
The reason given was that the loan will need insurance coverage,
and should anything happen to you, the insurance will pay up the
balance of the loan, leaving the bulk of your CPF intact for your
family.
This was an administrative "loop-hole" that was possible when HDB
was financing the purchase of the HDB flats sold.
In the current arrangement, when the bank is suppose to be offering
a more competitive interest rate than the HDB, and depending on the
terms and conditions of the Insurance Policy to cover for the loan,
it maybe possible to do the same.
At the end of the loan period, if you survive without any accidents
to claim from your insurance policy, your HDB flat will be more
substantially more expensive then what you have signed up for
initially.
Can you recover the cost when you decide to sell ?
