I've done some calculation, maybe this will let us have a clearer idea. This is my own opinion, but you are always welcome to comment on it

Scenario;

A HDB flat which costs S$250,000. Combine CPF of S$60,000. Loan for 30yrs. Interest rate of 2.6% P.A. from HDB.

Example 1; Full deduction

Total balance savings in CPF Ordinary Account for all applicants (round down to nearest hundredth dollar) $60000

Payments Required for Purchase of HDB Flat

Purchase Price of Flat $250000

Add 0% premium on purchase price (if any) $0

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Total purchase price of flat plus premium $250000

At time of Signing Agreement for Lease

20% Downpayment $50000

Stamp fees $ 3202.0

Conveyancing fees $ 171.15

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Total fees $3373.15

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Total amount payable $53373.15

Deduction from CPF Ordinary Accounts $53373.15

Cash top up $0.0

At time of Collecting Keys

Balance 80% of purchase price $200000

Add Fees payable

Lease in-escrow stamp/regn fees $ 42.3

Mortgage stamp fees $ 502.0

Mortgage in-escrow stamp/regn fees $ 48.3

Survey fees $ 288.75

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Total fees $881.35

Less Total CPF balance in all applicants' Ordinary Account

After deducting downpayment & stamp fees (round down to nearest dollar) $6626

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Amount Payable (round down to nearest dollar) $194255

Mortgage Loan for Purchase of HDB Flat

Age of the youngest applicant 30 years

Maximum repayment period 30 years

65 minus age of youngest applicant or 30 years, whichever is shorter

Maximum loan that HDB can grant under Credit Assessment $299700

Maximum loan eligible $200000

Mortgage loan required (round down to nearest hundredth dollar) $194300

Cash top-up (if any) (round down to nearest dollar) $0

MONTHLY MORTGAGE LOAN INSTALLMENT

At 2.6% for repayment period of 30 years

$778

Total (Principle + Interest)

S$778 x 12 x 30 $280080

I'll be paying S$80080 for interest!!!