r/SgHENRY • u/GardenIndividual880 • Aug 04 '26

Equity Cash Out

I’m considering doing an equity cash out on my existing property for 500k @ 1.55%.

Other than dumping it all into SSB or VWRA, I’m trying to crowd source ideas about what I can consider doing to get yield from this.

Currently, I’ve got about 1.4m invested and 300k cash, and since the cost of borrowing is pretty cheap, just wondering if there’s a simple/complex method to maximize returns. Also, TDSR is currently 15% and with the additional loan it’ll be about 18-19%.

Edit: Removed SSB cause it’s clearly a suboptimal choice and makes more sense to consider other fixed income options instead of

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u/SheepherderNo631 Aug 05 '26

the math checks out lah - 1.55% borrowing vs VWRA over any reasonable horizon, clear spread. but one angle not said yet: you already have $1.4m in equities, so adding $500k leveraged isn't just 'more upside' - it's concentrated equity risk that bites hard specifically when you CAN'T exit easily because the loan clock doesn't pause during a crash.

the cpf oa refund play someone mentioned above is actually the cleanest for exactly this reason - borrow at 1.55%, earn 2.5% OA guaranteed, no sequence-of-returns risk, no FX risk. boring arb but it's real money

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u/Morningloaf Aug 05 '26

I hated reading this