Singaporeans are viewed as a practical and savvy bunch, right? When it comes to selling our house , most of us prefer to receive the sale proceeds in cash, rather than having it go into our Central Provident Fund accounts.
Accrued interest is the interest that the principal amount would have earned if it was sitting in your CPF Ordinary Account instead of having been taken out to pay for your house. Currently, the CPF OA interest rate is 2.5 per cent per annum. Besides the principal amount and accrued interest, you must also refund the CPF grants back to your account
If it's any consolation, if the amount you have to refund to your CPF account exceeds your cash proceeds, CPF will write off the excess amount. To calculate how much money you "owe" your CPF account at a given point in time, log in to your CPF account. Under "my cpf' tab, click on "Home ownership". Note that is calculated based on the principal amount compounded yearly up till the point of sale, not until the end of the loan tenure. Agent commission fee=$11,000
The bottom line? The accrued interest you must refund to your CPF account can take a chunk of your sale proceeds.