Taking a home loan is a long term commitment, spanning decades. You must identify your intentions, needs and consequences of this decision. A home loan enables you to buy your property without a massive Cash/CPF outlay – (often impossible) – unless you’re Batman, and though we can’t check with him personally, we’re pretty sure that even he takes home loans.
A home loan by approved financial institutions e.g. Banks & HDB (yes they’re an official financial institution also) is generally regarded as a low risk decision, as there are multiple guard rails, stress tests, volatility mitigating factors that ensure most loans are not risky or over-leveraged.

Your financial situation, current and foreseeable future must be professionally and personally analysed before you make large decisions.

In Singapore’s context, home mortgage loans hover at ~2% in 2025 and peaked ~4.5% in 2022 during higher economic volatility.
Cash and CPF (specifically Ordinary Account contributions) when placed in a low risk venture, like fixed deposit accounts often yield the same if not more than (current) mortgage interests rates. On top of that Singapore is often ranked as one of the lowest mortgage interest rates in the world (Japan topping the list).
These combined factors usually mean cash and investable CPF amounts do yield better returns than the costs of borrowing for your property.

On the other hand, if the opportunity gains, costs and work are not top priorities, reducing loan amounts means you reduce your interest costs and stay debt-free!