Do you look forward to seeing your CPF interest at the beginning of the year? Have you wondered how the interest is calculated? The answer is it is more complicated than you think and the timing of your transaction matters.
If you have enough money, should you prepay your housing loan? Or you should keep the money in your CPF OA to earn interest? Or should you invest the additional money instead? In this article, I explore the two costs of the housing loan: interest costs and opportunity cost of not investing the extra money.