CPF for HDB Purchase: Complete Usage Guide (2025) – Homejourney

Keyword focus: CPF HDB purchase, use CPF for HDB, CPF OA for flat, CPF down payment HDB, CPF HDB rules

Executive Summary: How to Use CPF for Your HDB Purchase Safely

For most Singaporean buyers, CPF Ordinary Account (CPF OA) savings are the single biggest tool to finance an HDB flat – from down payment to monthly instalments and even legal fees.^[8] Used well, CPF helps you buy a home earlier without overstretching your cash. Used wrongly, it can compromise your retirement, blow your budget for an upgrade, or even limit your future home options due to CPF HDB rules on lease and withdrawal limits.^[8]

This Homejourney guide is a complete, practical playbook on CPF for HDB purchase in 2025, written with first-time buyers, upgraders and investors in mind. You will learn exactly:

What you can and cannot use CPF OA for when buying an HDB flat
How CPF down payment for HDB works (HDB loan vs bank loan)
Key CPF HDB rules on lease, valuation limits and withdrawal limits
Step-by-step examples for BTO and resale flats at realistic 2025 prices
How to plan CPF usage so you do not cripple your retirement or future upgrade
How to combine Homejourney tools – bank rates, calculators and property search – to plan your purchase safely

All rules are based on current CPF and HDB guidelines as of 2025, with references to official sources where applicable.^[8][7] Regulations can change, so always cross-check with CPF and HDB and use Homejourney’s updated tools before committing.

Chapter 1: CPF Basics for HDB Buyers
Chapter 2: What You Can Use CPF OA for in an HDB Purchase
Chapter 3: CPF Down Payment for HDB – HDB Loan vs Bank Loan
Chapter 4: CPF HDB Rules – Lease, Valuation Limit and Withdrawal Limit
Chapter 5: Step-by-Step CPF Usage for BTO and Resale Examples
Chapter 6: CPF, HDB Loan, Bank Loan and MAS Rules (MSR/TDSR)
Chapter 7: Smart CPF Strategies for Different Buyer Profiles
Chapter 8: Using Homejourney Tools to Plan CPF and Financing
FAQs: CPF for HDB Purchase
Next Steps with Homejourney

Chapter 1: CPF Basics for HDB Buyers

1.1 What is CPF OA and why it matters for HDB

Your CPF Ordinary Account (OA) is where a portion of your monthly CPF contributions go. For most working adults, OA contributions range from 23% to 11% of wages (combined employer + employee), decreasing with age as more is channelled to SA and MA.^[3] CPF OA earns at least 2.5% p.a., with extra interest on the first S$60,000 combined balance (up to 3.5% for many members).^[8]

For HDB buyers, CPF OA is crucial because you can use it to:

Pay HDB down payment with CPF
Service your monthly HDB loan or bank loan instalments
Pay stamp duty and legal fees
Pay for the compulsory Home Protection Scheme (HPS) for HDB flats^[8]

In heartland estates like Punggol, Sengkang or Jurong West, young couples often rely heavily on CPF OA because their cash savings are still building up. I’ve seen many couples in their late 20s manage a S$500,000–S$600,000 4-room resale flat with almost entirely CPF, keeping cash as emergency reserves instead of locking it into the property.

1.2 CPF Housing Scheme overview

CPF usage for property is governed by the CPF Housing Scheme. Under this scheme, your OA can be used to buy:

New HDB BTO flats from HDB
HDB resale flats
New or resale private properties in Singapore (not the focus of this guide)^[8]

Key high-level rules for HDB:

The flat must have a remaining lease of at least 20 years to use CPF at all.^[8]
CPF usage may be capped when the lease does not cover the youngest buyer till age 95.^[8]
Total CPF plus loan is capped by HDB or bank loan-to-value rules and MAS income rules.

1.3 CPF vs cash: why CPF is not “free money”

Many first-time buyers treat CPF like free money because they never touch it physically. In reality, every dollar of CPF you use for housing has to be “returned” when you sell the flat – principal plus accrued interest you would have earned if the money stayed in CPF.^[8]

This has three big implications:

If your flat does not appreciate much, you may get very little cash proceeds after refunding CPF.
Using too much CPF can shrink your retirement nest egg later.
Upgraders may find they have less cash on hand after sale than they expected.

Homejourney’s role is to make these trade-offs transparent so you can decide, not wake up 15 years later wondering where your sale proceeds went.

Chapter 2: What You Can Use CPF OA for in an HDB Purchase

2.1 Allowed uses of CPF OA for HDB

According to CPF’s official guidance, your OA savings can be used for all major parts of an HDB purchase under the Housing Scheme.^[8]

Item	Can I use CPF OA?	Notes
Option / booking fee (BTO)	Partially	Usually paid in cash first; later refunded from CPF when down payment is processed (HDB loan).
Down payment (HDB loan)	Yes	Up to 25% can be fully paid with CPF OA.^[6]
Down payment (bank loan)	Partially	At least 5% cash; rest of 25% can be CPF OA.^[6]
Monthly loan instalments	Yes	Subject to income rules (MSR/TDSR) and CPF housing limits.
Buyer’s Stamp Duty (BSD)	Yes	Can be paid via CPF, but often paid in cash then reimbursed from CPF.
Additional Buyer’s Stamp Duty (ABSD)	Yes	Where applicable, can also be paid with CPF (after cash first, then refund).
Legal and conveyancing fees	Yes	CPF can pay HDB or bank-appointed lawyers’ fees.^[3]
Home Protection Scheme (HPS) premiums	Yes	Mandatory for HDB loan; optional for bank loan buyers.^[8]
Renovation, furniture, aircon servicing	No	Must be paid in cash; plan separately with Homejourney’s Aircon Services .

2.2 What you cannot use CPF for

You cannot use CPF OA to pay for:

Renovation works (tiling, carpentry, hacking, lighting)
Furniture and appliances (sofa, beds, fridge, aircon units, etc.)
Monthly conservancy or service and conservancy charges (S&CC)
Property tax – must be paid in cash

This is where many buyers in mature estates like Tampines or Ang Mo Kio get a shock. They budget CPF carefully for purchase but forget that renovation for an older 4-room resale can easily hit S$40,000–S$60,000. That is why Homejourney encourages you to always run a full budget, including renovation and post-move costs, together with your home loan planning.

2.3 CPF usage when buying with co-owners

When you buy with a spouse, parent or sibling, your combined CPF OA can be used, but usage must follow:

Ownership shares (e.g. 50–50, 99–1)
CPF housing limits based on the youngest owner’s age and remaining lease^[8]

Example: Husband (30) and wife (28) buy a 4-room resale in Bukit Panjang with 88 years lease left. CPF usage limits are based on the 28-year-old’s age, not the older spouse. This affects how much CPF they can use before hitting valuation and withdrawal limits (explained in Chapter 4).

Chapter 3: CPF Down Payment for HDB – HDB Loan vs Bank Loan

3.1 HDB loan vs bank loan: down payment structure

The way you use CPF for HDB down payment depends mainly on whether you take an HDB concessionary loan or a bank loan.

Feature	HDB Loan	Bank Loan (DBS, OCBC, UOB, etc.)
Loan-to-Value (LTV) limit	Up to 80–85% historically; current guidance is up to 75% for many cases – check latest HDB rules.	Up to 75% of purchase price or valuation, whichever lower (MAS rule).
Total down payment	Typically 25% of price.^[6]	25% of price.
Minimum cash portion	0% (can be fully CPF OA).	At least 5% cash of price; remaining 20% can be CPF OA.^[6]
CPF OA usage for down payment	Up to entire 25% if you have sufficient OA.	Up to 20% of price; must still pay 5% cash.

For a detailed comparison of HDB loan vs bank loan beyond CPF usage, refer to Homejourney’s dedicated guide: HDB Loan vs Bank Loan 2025 Comparison | Homejourney .

3.2 Using CPF OA for down payment – practical examples

Example 1 – 4-room BTO in Tengah (S$380,000 assumed):

Price: S$380,000
HDB loan: 75% = S$285,000
Down payment 25%: S$95,000
You can use up to S$95,000 CPF OA if you have enough in OA. No minimum cash required for HDB loan.^[6]

Example 2 – 4-room resale in Queenstown (S$800,000 assumed):