Guide to Using Your CPF for HDB & Private Property Purchases

Thinking of buying a home in Singapore but not sure how to use your CPF savings to purchase?

In this post, you’ll learn:

• Which CPF account you can actually use for property
• How much CPF you’re allowed to use, and
• How to apply

So if you’re planning to use your CPF for property purchase and want to do it without unknowingly sabotaging your retirement, keep reading.

Which CPF account can I use for property purchases?

When it comes to buying a home in Singapore, your CPF Ordinary Account (OA) is where the action is.

This is the account that holds the funds you can use to pay for property-related costs – and yes, it applies whether you’re buying a BTO, a resale flat, or even a private property (as long as it’s residential).

But here’s the catch – just because the funds are there doesn’t mean you can use every cent.

I’ll get to that later.

What can I use my OA savings for when buying a home?

Whether you’re planning to buy a BTO flat, a resale HDB, or a private condo, CPF has laid out quite clearly what you can and cannot use your OA savings for.

Here’s a quick breakdown of what you can use your CPF OA for:

• Downpayment – For HDB flats, this could be the entire downpayment (if you’re taking a HDB loan). If you’re using a bank loan, then only up to 20% can come from CPF — the remaining 5% must be paid in cash.
• Monthly loan repayments – Once the house is yours (or you’re in the process of getting the keys), your OA can be used to pay off your monthly mortgage instalments, whether it’s to HDB or the bank.
• Stamp duties and legal fees – These include the Buyer’s Stamp Duty (BSD) and any additional legal or conveyancing charges. You’ll typically authorise your lawyer to make these arrangements using your CPF.
• Construction loans (for private properties only) – If you’re building your own landed home (and not just buying a ready-built property), your CPF can be used to repay the construction loan and even purchase the land, assuming you meet CPF’s eligibility rules.
• Home Protection Scheme (HPS) premiums – This applies only to HDB flats. If you’re using CPF to pay your monthly instalments for an HDB flat, you’re required to be covered under HPS, which helps pay off your outstanding housing loan in the event of death, terminal illness, or permanent disability.

And yes, your CPF OA covers the annual premiums. For private property owners – you’ll need a private term plan for that.

What is the maximum amount of CPF I can use to buy a property?

There are limits, and how much you can actually use depends on a few things.

Let’s break it down.

1. CPF withdrawal limits to take note of

Valuation Limit

The Valuation Limit (VL) is one of the first CPF caps you’ll run into, and it’s quite straightforward.

It refers to the lower of the purchase price or the market valuation of the property at the time of purchase.

So let’s say:

• You’re buying a property for $550,000
• But the bank or HDB values it at $500,000

In this case, your Valuation Limit is $500,000 because that’s the lower of the 2.

You can use your CPF OA savings up to this amount to pay for the property (including downpayment and loan repayments).

Now, here’s the key thing: once you hit this VL, you can’t continue using CPF unless you meet a condition – setting aside your Basic Retirement Sum (BRS) if you’re under 55.

If you’re 55 and above, you’ll need to meet the BRS in your Retirement Account (RA) and OA combined.

Only then can you tap into CPF again and that’s where the next limit comes in.

Housing Withdrawal Limit (HWL)

The Housing Withdrawal Limit (HWL) is the absolute maximum amount of CPF you can use on a property.

It’s currently set at 120% of the Valuation Limit.

So if your VL is $500,000, your HWL would be $600,000. This is the most CPF you can ever use for that property.

Once you’ve hit this ceiling, that’s it. No more CPF can be used, regardless of whether you’ve got money left in your OA.

From this point forward, you’ll need to use cash to service your mortgage.

Also, reaching the HWL doesn’t mean your loan is fully paid.

It just means CPF can’t be used anymore, which is why some homeowners find themselves needing to fork out larger monthly repayments in cash down the line.

This is especially important if you’re planning to stretch your loan over a longer tenure because it’s quite possible to hit the HWL before the loan ends.

So plan accordingly. It’s not just about how much CPF you have, it’s about how much you’re actually allowed to use.

2. Purchase of first property

Buying your first home?

You generally get the most flexibility, but even then, CPF has some rules.

If the property has a remaining lease that can cover you or the youngest buyer until age 95:

You’re allowed to use your CPF OA savings fully up to the Valuation Limit.

If you’ve taken a bank loan, you’ll also need to set aside your Basic Retirement Sum (BRS) before you can continue using CPF beyond the Valuation Limit, up to the Withdrawal Limit.

If the lease doesn’t cover the youngest buyer until age 95:

Your CPF usage will be pro-rated, which means you can’t use your OA fully.

CPF Board will determine how much of your OA you and your co-owner(s), if any, can use. This is calculated based on a percentage of the lower of the purchase price or valuation price.

Let’s say you’re 35, and you’re buying a flat with a 50-year lease left.

If that lease doesn’t cover you till age 95, you’ll only be able to use a portion of your OA, and the rest would need to come from cash.

The shorter the lease, the smaller the percentage of CPF you can use.

And yes, CPF’s housing usage calculator is your best friend to get an estimate.

For a new flat bought directly from HDB, these are varying amounts of your CPF you can use:

For resale and private property, these are the varying amounts of your CPF you can use:

3. Purchase of second or subsequent properties

If you already own a home and are looking to buy another, CPF usage becomes a little stricter here, especially if you’re eyeing a second property for investment.

Here’s how it works:

You can only use your CPF OA savings for a second (or third, etc.) property after setting aside the required retirement amount.

This amount depends on whether you already own a property that can last you or your co-owner till at least age 95.

If at least one of your existing properties can cover you till age 95:

You’ll need to set aside your Basic Retirement Sum (BRS) in your CPF accounts (Ordinary + Special).

Once that’s done, any excess CPF OA savings can be used for the second property, within the existing Valuation Limit and Withdrawal Limit rules.

If none of your properties can cover you till age 95:

You must set aside the Full Retirement Sum (FRS) instead, which is twice the BRS. Only after meeting that amount can you use any excess OA savings for another property.

Also, a quick but important note:

You can’t own more than one HDB flat at a time.

So when we talk about “second” or “subsequent” properties, we’re referring to private residential properties only, like condos or landed homes.

It’s also worth pointing out that for these subsequent purchases, CPF usage is capped at 100% of the Valuation Limit, even if the lease extends beyond 95.

So the margin gets tighter.

What are the eligibility criteria for using my OA savings for property purchase?

Before you start using your CPF OA savings for a home, you’ll need to meet certain criteria.

These depend on the type of property you’re buying and your personal profile, such as whether you’re applying as a couple, a senior, or a single buyer.

Let’s break it down.

1. For HDB flats

HDB flats come with their own eligibility checks and not just for CPF usage.

You’ll also need to meet HDB’s housing scheme requirements before you can even buy the flat in the first place.

Quick tip: even though CPF can help with the bulk of your housing payments, deposits and option fees must still be paid in cash, especially for resale flats.

2. For Private Residential Properties

Whether it’s a condo, landed home, or even a property you’re building from scratch, CPF usage is allowed, but the rules here are a little different compared to HDB flats.

Here’s what you’ll need to qualify.

Eligibility criteria:

• Singapore Citizen or Singapore PR
• The property must be residential
• The remaining lease must be at least 30 years, and your age plus the lease must add up to at least 80 years
• Lease must cover the youngest buyer till at least age 95
• You must be buying the property in your own name, or jointly with your family
• If you’re buying your second or subsequent private property, you must set aside your Basic Retirement Sum (BRS) (or Full Retirement Sum (FRS) if none of your properties meet the lease condition) before you can touch your OA again

Additional requirements:

You’ll need to go through the CPF Private Properties Scheme (PPS), which includes:

• Submitting a valuation report prepared by a licensed valuer
• Legal documentation between your lawyer and CPF Board
• A proper application form authorising the use of CPF for the purchase

Keep in mind:

• CPF cannot be used if you’re buying the private property with a non-related single (e.g. friend or business partner) unless special conditions are met.
• If you’ve already used CPF for another property, your CPF usage for the second one is capped at 100% of the Valuation Limit, even if the lease is long.

So while CPF does give you a leg-up when buying private properties, it’s not without its hurdles.

The good news is that as long as you meet the conditions and plan ahead, it can still be a powerful tool to reduce your upfront cash outlay.

How do I apply to use CPF money to buy property in Singapore?

Once you’ve decided how much CPF you’d like to use and for what, the next step is getting it approved and disbursed.

The application process differs slightly depending on whether you’re buying an HDB flat or private property, and whether your loan is with HDB or a bank.

For HDB with HDB loan

If you’re taking a loan directly from HDB, you’ll need to go through HDB’s system to activate the use of your CPF OA savings.

There are 2 ways to do this:

1. Apply online via HDB’s e-Service

• Visit HDB’s website
• Look for the service called “Commence the use of CPF / Vary CPF deductions for HDB housing loan instalment”
• Login with your Singpass
• Follow the instructions to indicate:
  • How much CPF you want to use
  • Whether you’re starting CPF deductions or changing the current deduction amount

This is the fastest and most convenient method, especially if you’re already managing your HDB loan and property account online.

2. Apply in person at any HDB Branch

Prefer to get help in person?

• Head to your nearest HDB Branch Office
• Complete and submit the “CPF Withdrawal Form (PHS9)”
• The staff can help you review your CPF usage eligibility and answer any questions about the deduction limits or repayment plans

Remember, CPF usage for housing doesn’t happen automatically; you need to authorise it, and specify the amount and duration.

If you don’t actively set it up, you’ll need to service your loan in cash until CPF is linked up.

Also, if you’re planning to adjust the amount of CPF used later (e.g. to reduce your monthly deductions), you’ll need to go through the same service again.

For HDB with bank loan

If you’ve taken a bank loan instead of an HDB loan for your flat, the application process is handled through CPF, not HDB.

It’s a fairly straightforward process, but there’s one thing to note: you’ll need to set it up at least 5 working days before your monthly instalment is due.

Otherwise, you might have to pay that month’s instalment in cash first.

Here’s how to apply:

• Go to the CPF website at www.cpf.gov.sg
• Log in using your Singpass
• Navigate to the e-Service: “Use CPF for my Property”
• Follow the steps to:
  • Authorise CPF to work with your lawyer and bank
  • Set the amount of CPF to be deducted monthly for your housing loan instalments
  • Specify if you’d like to make partial or full capital repayments using CPF in the future

If you’re already using CPF and want to adjust or stop the deductions (e.g. if you’re switching to cash payments), you can also do that via the same portal.

Once approved, CPF will coordinate with your bank and start deducting the agreed amount from your OA each month.

This method applies whether you’re:

• Buying a new HDB flat but financing it with a bank loan, or
• Purchasing a resale flat using a bank loan

In either case, keep an eye on your CPF usage limits, especially the Valuation Limit and Withdrawal Limit, which could kick in over time and require you to make up the difference in cash.

For private properties

If you’re buying a private residential property, whether it’s a condo, landed home, or an Executive Condominium (EC) that’s reached its Minimum Occupation Period (MOP), the process for using your CPF OA savings is fairly similar to using it for HDB flats with bank loans.

Here’s how to apply:

• Visit the CPF website at www.cpf.gov.sg
• Log in using your Singpass
• Use the “Use CPF for my Property” e-Service
• Provide the necessary details including:
  • The loan information from your bank
  • Your lawyer’s contact details
  • Your instructions on how CPF should be used (e.g. monthly loan instalments, legal fees, stamp duties)

As with HDB bank loans, you’ll need to submit this at least 5 working days before the scheduled deduction date to avoid delays or having to pay in cash upfront.

Once everything’s in order, CPF will coordinate with your lawyer and bank to start the deductions from your OA.

A quick note on HPS (Home Protection Scheme):

Unlike HDB loans, HPS is not mandatory for private properties, and in fact, it’s not even available for them.

However, it’s worth knowing that:

• HPS only applies to HDB flat owners who are using CPF to pay their monthly instalments
• If you’re buying an HDB flat (not private), and using CPF, you must be covered under HPS
• Your eligibility for HPS is subject to health checks and CPF Board’s approval
• But don’t worry while your HPS application is being processed, you can still proceed to use your CPF OA to pay your monthly housing loan instalments

If you’re buying private property, consider getting term insurance from a private insurer instead, especially if you want to protect your family from having to deal with outstanding home loan debt if something happens to you.

Frequently Asked Questions

Do I need to pay back CPF after I sell my property?

Yes, you’ll need to pay back CPF after you sell your property.

Specifically, you must refund the CPF savings you used for the purchase, including the downpayment, stamp duties, and monthly instalments, plus the accrued interest (currently at 2.5% per annum).

This amount gets returned to your CPF Ordinary Account.

If your sale proceeds aren’t enough to cover the refund, and the property is sold at or above market value, you won’t need to top up the shortfall in cash.

CPF simply takes whatever’s left after settling the outstanding loan.

Can I use my CPF to pay for more than one property?

Yes, you can use your CPF to pay for more than one property, but there are additional conditions.

To use your CPF for a second or subsequent property, you must first set aside your Basic Retirement Sum (BRS) in your CPF accounts.

If none of your properties can cover you till age 95, you’ll need to set aside the Full Retirement Sum (FRS) instead.

Also, CPF usage for subsequent properties is capped at 100% of the Valuation Limit, and applies to private properties only, since you can’t own more than one HDB flat.

Can I use CPF to pay for monthly loan repayments?

Yes, you can use CPF to pay for monthly loan repayments.

Specifically, your CPF Ordinary Account (OA) savings can be used to service your housing loan, whether it’s for an HDB flat or a private residential property.

This applies to both HDB loans and bank loans, as long as you’ve applied through the proper channels.

Just remember, your CPF usage is subject to limits like the Valuation Limit (VL) and Housing Withdrawal Limit (HWL).

Once those are reached, you’ll need to continue making loan repayments in cash.

How do I check the amount to be refunded to my CPF account upon selling my property?

You can check the amount to be refunded to your CPF account upon selling your property by logging in to the CPF website with your Singpass.

Head to the “My Property” section under CPF Online Services, which shows you the total CPF amount used, including the accrued interest.

This is the amount that must be refunded to your CPF OA after the sale.

It’s best to check this before you sell, so you know how much of your sales proceeds will go back into CPF, and how much you’ll get in cash.

Is it necessary to be insured under the Home Protection Scheme?

Yes, it is necessary to be insured under the Home Protection Scheme (HPS) if you’re using your CPF savings to pay the monthly housing loan instalments for an HDB flat.

HPS is a mortgage-reducing insurance that protects you and your family if something happens to you (like death, terminal illness, or total permanent disability), HPS helps to pay off the outstanding loan.

Your eligibility for HPS is subject to approval and a health declaration.

If you’re buying a private property, HPS does not apply, but you can consider taking up term insurance from a private insurer instead.

What happens if I can’t sell my property for enough to cover the CPF refund?

If you can’t sell your property for enough to cover the CPF refund, you won’t need to top up the shortfall in cash, as long as the property is sold at or above its market value.

In that case, CPF will simply take whatever amount is left after paying off your outstanding housing loan.

However, you must ensure that the selling price is not undervalued, as CPF Board requires the transaction to reflect a fair market value.

The refunded amount, even if partial, will go back into your CPF Ordinary Account.

Conclusion

Using your CPF to buy a home can be a huge help, especially when cash is tight.

We’ve covered everything from how much CPF you can actually use, the limits you need to be aware of, and the application process.

At the end of the day, it’s all about balance. CPF is a powerful tool, but it’s not unlimited, and using it without a plan can come back to bite you years down the road.

Consider trying out our handy Financial Toolkit to get a clearer picture of your finances!

If you’re still unsure about how much CPF you should be using or how this might affect your future finances, we get it, it can be confusing.

That’s why we work with trusted financial advisor partners who can help you figure it out, at no cost to you.

If that sounds like something you’d find useful, feel free to reach out here.

References

• https://www.cpf.gov.sg/member/home-ownership/using-your-cpf-to-buy-a-home
• https://www.cpf.gov.sg/service/article/how-much-cpf-savings-can-i-use-for-my-property-purchase
• https://www.cpf.gov.sg/member/home-ownership
• https://www.dbs.com.sg/personal/articles/nav/my-home/cpf-or-cash
• https://sg.news.yahoo.com/3-key-factors-know-using-051146608.html