Hi all Is clearing home loan debts via CPF wise to do it , to reduce debts? I understand CPF is for retirement but lookin at home loans debts also an issue unless HDB provide Free

Clearing debt with CPF is not too a bad idea as long as:

​

1. You catered for enough retirememt funds in CPF.
2. You have better uses for your spare cash (whether it is a life goal or to go aggressive in investing.

​

As for me, I prefer to clear my home loan asap.

Everyone thinks differently, and there’s no absolute right or wrong answer. Personally, I prefer to clear my housing debts (or have as little debt as possible), even though it means my OA balance will be low or nearly empty. I’ve seen people buy luxury condos and then constantly worry about making timely payments and the risk of job retrenchment. For me, living with less or no debt brings greater peace of mind. However, to built SA is tough but just pressed on

My take is to clear your home loan as fast as possible via CPF OA and partial cash, else all OA is fine. The retirement plan is to focus on SA before turning to RA and passive income from investments/dividends.