EPF has just declared a 5.15% dividend for EPF members' funds. All the money sitting there is not earning me enough interest compared to the interest rate chargeable by my housing loan. So, shall I consider withdrawing it to reduce my mortgage?

It looks like a sound idea. But actually, the current mortgage is actually a remortgage which I took up recently to reduce the earlier secured home loan which I used to purchase the place where I am staying now. I am now currently enjoying better rates and features in the current loan compared to the original loan. Interest rate is lower for the first couple of years.

I wonder if I would obtain substantial savings now if I were to withdraw some monies from EPF to reduce the current loan so that the interest calculated will be on a lower principal sum. Or will it be better to wait till the interest goes up on the current loan before I withdraw monies from EPF? Perhaps someone out there could help me. Or is it really the same?

And meantime, the papers are advertising more and more new secured loans packages which also come with free gifts! It is truly shiok! for consumers to be able to pick and choose the best loans available. If you are still using the old loan scheme which comes with interests calculated on monthly rests, you should seriously consider switching to current loans available.


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