Is Housing Expensive?

Housing is cheap, but the cost of money is expensive.

Lets look at how much you will pay (assume split half with spouse)

Take a S$300,000 HDB for example (loan amount will be S$270,000):

10 years loan:
Monthly payment: $1280
Total interest paid in 10 years: $36,910

15 years loan:
Monthly payment: $907 (-$373)
Total interest paid in 15 years: $56,352 (+$19442)

20 years loan:
Monthly payment: $722 (-$185)
Total interest paid in 20 years: $76,543 (+$20191)

25 years loan:
Monthly payment: $613 (-$109)
Total interest paid in 25 years: $97,472 (+$20929)

In short, 3 things:
1) it costs $97,472 to borrow $270,000 from HDB
2) it costs about another $127,000 to borrow the money from CPF to pay loan HDB due to accrued interest which you have to pay your own CPF
3) based on my own views and understanding, if wrong, please let me know, don't sue me.


Don't listen to people who tell you to spend all your CPF money on paying your house unless you are able to pay and still meet the minimum sum when you reach 55. Whether you can reach or not is another matter.