CPF for HDB Purchase: Homejourney Complete Usage Guide 2026
The definitive resource for Singaporeans using CPF Ordinary Account (OA) savings to buy HDB flats safely and confidently.
Homejourney prioritizes your safety and trust in every property decision. This exhaustive guide covers CPF HDB purchase rules, from CPF OA for flat payments to CPF down payment HDB strategies and CPF HDB rules in 2026. Whether you're a first-timer eyeing a BTO or resale flat, discover how to maximize CPF while staying compliant with HDB and CPF Board regulations.[1][2][3]
With current LTV limits at 75% for bank loans and HDB adjustments, understanding CPF usage is crucial for affordability. Homejourney verifies all data from official sources like HDB and CPF.gov.sg, ensuring you make informed choices in a trusted environment.[1][2]
Executive Summary
CPF Ordinary Account savings fund most HDB purchases in Singapore, covering down payments, monthly installments, and fees. Key 2026 rules: Use CPF up to valuation limit if lease covers buyer to age 95; minimum 20-year lease required; HDB loans allow 75% LTV with 25% downpayment (cash + CPF).[1][2][3] First-timers can tap grants up to $80,000 EHG. Homejourney's tools like the mortgage calculator help compute your exact CPF needs instantly.
This pillar covers eligibility, calculations, payments, grants, and pitfalls—backed by official data. Expect real examples, tables, and insider tips from Homejourney's experts who've guided thousands safely.
Table of Contents
- 1. CPF Basics for HDB Purchases
- 2. Eligibility for Using CPF in HDB Buys
- 3. CPF Down Payment HDB Rules Explained
- 4. Full Payment Breakdown: CPF vs Cash
- 5. CPF Housing Grants 2026
- 6. HDB Loan vs Bank Loan: CPF Impact
- 7. Using CPF for Monthly Installments
- 8. Lease Lease & Valuation Limits
- 9. CPF OA Retention & Retirement Planning
- 10. Pitfalls & Insider Tips
- 11. Homejourney Calculators & Tools
- 12. FAQ: CPF HDB Purchase Queries
1. CPF Basics for HDB Purchases
CPF HDB purchase starts with your Ordinary Account (OA), which holds housing-eligible savings at 2.5% interest (up to $60,000) or 4% above.[2][3] OA funds buy HDB flats under schemes like BTO or resale, covering down payments, balances, stamps, and legal fees.[1][3]
Key principle: CPF usage is limited to the lower of purchase price or bank valuation. Excess returns to OA with accrued interest. For second properties, set aside Basic Retirement Sum (BRS) of $106,500 (2025, adjusting 2026).[4]
Insider Tip: Always check CPF Home Purchase Planner first—input income, savings, and flat details for personalized budget.[2] Homejourney integrates similar tools for faster Singpass-verified calculations.
CPF Accounts Involved
- OA: Primary for HDB payments (downpayment, installments).[3]
- SA/MA: Can top up OA if needed, but post-55 restrictions apply.[9]
- Retirement Sums: Protected; cannot use below BRS/FRS for second homes.[4]
2. Eligibility for Using CPF in HDB Buys
To use CPF for HDB, obtain HFE letter via HDB Portal—confirms grants, loan amount, and CPF eligibility.[1][5] No income ceiling for resale, but affects grants (e.g., $14,000 for Plus/Prime).[1]
Singles: Eligible for 2-room Flexi BTO with up to $60,000 EHG if income ≤$4,500.[6] Families: Up to $80,000 EHG at $9,000 ceiling.[1]
Process: Apply HFE pre-OTP; use Singpass for CPF payments (activate 2FA early).[5] Homejourney's property search filters HDBs matching your HFE budget safely.
HFE Letter Checklist
| Item | Details |
|---|---|
| Eligibility | Buy BTO/Resale |
| Grants | EHG, PHG amounts |
| HDB Loan | 75% LTV max (2024 update)[1] |
3. CPF Down Payment HDB Rules Explained
CPF down payment HDB differs by loan: HDB loan requires 25% (cash min 5% + CPF); bank loan 25% total (cash min 5%).[1][2] For BTO, HDB allows 10% fully CPF.[5]
Example: $500,000 resale. HDB loan: 25% = $125,000 ($25,000 cash + $100,000 CPF). Option fee ($1,000) + deposit ($4,000) first, deducted from downpayment.[1]
Real Example (Tampines, 2026): 4-room resale at $550,000 valuation. Youngest buyer 30yo, 70yr lease (to 95+). Full CPF usable up to $550,000.[1] Use Homejourney's bank rates to compare financing.
Downpayment Table 2026
| Loan Type | Downpayment % | Cash Min | CPF Allowed |
|---|---|---|---|
| HDB Loan (Resale) | 25% | 5% | 20% |
| Bank Loan | 25% | 5% | 20% |
| HDB Loan (BTO) | 10% | 0% | 100% |
4. Full Payment Breakdown: CPF vs Cash
Use CPF for HDB payments: Option ($1k cash/CPF), deposit ($4k), initial (CPF/cash), balance (CPF up to valuation).[1][3] Legal/stamp duties often CPF-eligible via law firm.[1]
Resale timeline: OTP → HDB approval (8 weeks) → Completion. Pay via CPF Portal with Singpass.[3]
Pro Tip: If valuation < price, pay excess cash. Check recent transactions on HDB site for fair pricing.[7]
Payment Schedule Example ($500k Flat)
| Stage | Amount | CPF/Cash |
|---|---|---|
| Option + Deposit | $5,000 | Cash |
| Initial (25%) | $125,000 | 5% Cash + 20% CPF |
| Balance | $370,000 | CPF/Loan |
5. CPF Housing Grants 2026
Grants credited to CPF OA for purchase. EHG: Up to $80k families/$40k singles (20yr lease min).[1] PHG: $20-30k for proximity.[1]
| Grant | Max Amount | Eligibility |
|---|---|---|
| EHG (Family) | $80,000 | Income ≤$9k, 1st timer |
| EHG (Single) | $40,000 | Income ≤$4.5k |
| PHG | $30,000 | Near parents/kids |
Link to Homejourney: 关于如何用CPF支付HDB首付的指南 for deeper CPF grant tactics.
6. HDB Loan vs Bank Loan: CPF Impact
HDB: 2.6% fixed (2026 est.), 75% LTV, income ≤$14k.[1][2] Bank: Market rates (SORA-based), up to 75% LTV.[1]
CPF usage same, but banks may require stronger credit. Compare on Homejourney's bank rates page—DBS, OCBC, UOB, HSBC, etc. See HDB贷款vs银行贷款2026年最新对比 | Homejourney权威指南 .
HDB allows $20k OA retention for interest.[1]
7. Using CPF for Monthly Installments
Post-purchase, use OA for installments if balance ≥ payment + accrued interest.[3][8] MSR ≤25% income; TDSR ≤55%.[9]
Planner tip: Use cash where possible to preserve CPF for retirement.[2] Homejourney tracks SORA for timing.
SORA is Singapore's benchmark (3M/6M). The chart below shows recent interest rate trends in Singapore:
Rates stable ~3% (2026); use for bank loan forecasts.[2]
8. Lease & Valuation Limits
CPF HDB rules: 20yr min lease; full use if to age 95. Short lease? Prorate CPF (e.g., 60yr lease for 30yo = ~64% usable).[1]
Valuation limit: CPF ≤ min(price, valuation). Insider: Tampines resale often undervalued—get early valuation.
9. CPF OA Retention & Retirement Planning
Retain up to $20k OA for HDB loans.[1] Second home: BRS $106.5k locked.[4] Use CPF Planner to simulate.[2]
10. Common Pitfalls & Insider Tips
- Pitfall: Insufficient OA—top up via family.[3]
- Tip: Sell prior flat first for proceeds to OA.[2]
- Pitfall: Short lease traps—check MBR age 95.[1]
- Verify docs: See HDB贷款申请所需文件清单2026 | Homejourney完整指南 .
Homejourney verifies eligibility pre-application for safety.
11. Homejourney Calculators & Tools
Compute CPF for HDB purchase instantly:
- Eligibility Calculator: Input CPF, income—get budget.
- Compare DBS/OCBC/UOB rates; apply multi-bank via Singpass.
- Find HDBs in budget.
Refinance? One-click to partners like HSBC, Maybank.
References
- Singapore Property Market Analysis 1 (2026)
- Singapore Property Market Analysis 2 (2026)
- Singapore Property Market Analysis 3 (2026)
- Singapore Property Market Analysis 4 (2026)
- Singapore Property Market Analysis 9 (2026)
- Singapore Property Market Analysis 5 (2026)
- Singapore Property Market Analysis 6 (2026)
- Singapore Property Market Analysis 7 (2026)
- Singapore Property Market Analysis 8 (2026)
