CPF for HDB Purchase: Homejourney's Complete Usage Guide
This is the definitive guide to using CPF for HDB purchase in Singapore, covering every rule, calculation, and strategy for first-time buyers, upgraders, and investors. Homejourney prioritizes your safety and trust by verifying all data from official HDB and CPF sources, helping you navigate CPF HDB purchase with confidence.
Whether buying a BTO or resale flat, understanding use CPF for HDB rules can save thousands. We'll break down CPF OA for flat, CPF down payment HDB, and CPF HDB rules with real 2026 examples, tables, and insider tips.
Executive Summary
CPF Ordinary Account (OA) savings are the cornerstone of CPF for HDB purchase, covering down payments, monthly instalments, and more for over 80% of Singapore buyers. In 2026, key rules include 75% LTV for HDB loans, prorated CPF for short leases, and MSR/TDSR caps at 30%/55% of income[1][2].
Homejourney verifies this from HDB/CPF official guidelines, offering tools like our bank rates page to compare DBS, OCBC, UOB rates while maximizing CPF use. Expect 3,000+ words of actionable advice, tables for snippets, and safe decision frameworks.
1. CPF Basics for HDB Buyers
CPF comprises Ordinary Account (OA, 37.4% of contributions), Special Account (SA), and MediSave. For housing, only CPF OA for flat applies directly, earning 2.5% interest (up to 4% with top-up incentives).
HDB flats qualify for full CPF usage if the lease covers the youngest buyer to age 95. Shorter leases prorate CPF to Valuation Limit (VL), requiring cash top-up[2]. Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator factors this instantly.
Why CPF Matters for HDB
Using CPF reduces cash outlay: e.g., S$500,000 BTO flat downpayment (10-25%) can be fully CPF-funded[1][4]. But rules like OA retention (S$20,000 min for HDB loans) preserve interest earnings[2].
Insider tip: Check CPF statement via Singpass before HFE application—many overlook OA balances under S$40,000, disqualifying grants[3].
2. HFE Letter & Eligibility Check
The HDB Flat Eligibility (HFE) letter is mandatory for BTO/resale, confirming CPF HDB purchase eligibility, grants, and loan quantum[1][4]. Apply via HDB Portal with Singpass; processing takes 1 week.
HFE details: CPF grants (up to S$80,000 EHG), HDB loan (75% LTV post-2024), MSR limit. No HFE = no OTP[1].
Who Qualifies?
- Singapore Citizens/PRs aged 21+ (low-income exemptions)
- First-timers: No prior ownership
- Income ceiling: S$14,000/month for HDB loans[2][3]
- Family nucleus or singles via SSCS/JSS[5]
Use Homejourney's eligibility tool linked to bank-rates for pre-HFE simulation.
3. Using CPF OA for HDB Flats
Use CPF for HDB covers: Option Fee (S$1,000-5,000), downpayment, instalments, stamp duties, legal fees[2]. Process via CPF Portal post-OTP, with seller approval.
What Can CPF Pay?
| Payment Type | CPF Eligible? | Conditions |
|---|---|---|
| Option Fee/Deposit | Yes (full) | Cash or CPF OA |
| Downpayment | Yes (up to 25% for bank loan) | Min 5-10% cash for HDB[1] |
| Monthly Instalments | Yes | Within MSR/TDSR |
| Stamp Duty/Fees | Yes (select) | Via law firm policy[2] |
Pro tip: For resale, CPF limited to VL if lease <99 years—e.g., 60-year lease on S$600k flat = S$363k CPF max (60% VL)[2].
4. Downpayment Schemes & CPF
HDB downpayment: 10-25% purchase price. CPF down payment HDB is standard, but cash minimums apply.
Staggered Downpayment Scheme (BTO)
5% at OTP, 5% at lease signing (CPF/cash), 15% at key collection[1]. Ideal for CPF-heavy buyers.
Deferred for Students/NSFs
2.5% initial, balance deferred—full CPF post-graduation[1].
| Loan Type | Total Downpayment | CPF Usage | Cash Min |
|---|---|---|---|
| HDB Loan | 25% (10% +15%) | Full after 5% cash | 5% |
| Bank Loan | 25% | Full | 5-10% |
Example: S$400k BTO, HDB loan: S$20k (5% cash/CPF) + S$20k at signing + S$60k at keys—all CPF possible post-min cash[1]. Link to our guide: How to Use CPF for HDB Down Payment: Homejourney Guide
5. BTO vs Resale: CPF Differences
BTO: Full CPF for 99-year lease, staggered payments[1][4]. Resale: Prorated if lease short, no income ceiling but grants capped[2].
- BTO: 10% down (CPF OA), wait 3-5 years for keys.
- Resale: 25% bank/20% HDB initial (CPF up to VL), immediate possession[2].
2026 trend: Resale prices up 5% in mature estates; use CPF wisely via Homejourney's property search.
6. CPF Grants & HDB/Bank Loans
Grants credited to CPF OA: EHG (S$80k max), PHG (S$30k)[2]. HDB loan at 2.6% p.a. (2026 est.), bank via SORA.
Compare on Homejourney bank-rates: DBS 3M SORA +0.5%, OCBC fixed 2.8%.
HDB vs Bank Loan
HDB: 75% LTV, MSR 30%. Bank: 75% LTV, TDSR 55%, often lower rates[2]. See HDB Loan vs Bank Loan 2026: Which Saves You More Money? .
7. Key CPF HDB Rules & Limits
CPF HDB rules: Min 20-year lease for any CPF; age 95 coverage for full. MSR: 30% income, TDSR: 55% total debt[7]. OA retention: S$20k for HDB loans[2].
- No CPF if lease <20 years.
- Prorated: (years to 95 / total lease) x price.
- Accrued interest returned to OA on sale.
Homejourney ensures compliance—apply via Singpass for verified CPF data.
8. Practical Calculations & Examples
Example 1: S$500k resale, 70-year lease, buyer age 30 (65 years to 95). Prorate: 65/99 = 66%, CPF max S$330k (at VL S$500k).
Downpayment (bank loan): 25% = S$125k CPF/cash. Monthly: S$2,000 on S$375k loan (30yr, 3% SORA).
MSR/TDSR Table
| Household Income | MSR Limit (30%) | Example Instalment |
|---|---|---|
| S$5,000 | S$1,500 | S$450k loan max |
| S$10,000 | S$3,000 | S$900k loan max |
| S$14,000 | S$4,200 | S$1.26M loan max |
Try our calculator: https://www.homejourney.sg/bank-rates#calculator[3].
9. Pitfalls & Insider Tips
Pitfall: Ignoring short-lease proration—e.g., Tengah 99yr BTO full CPF, Punggol resale 80yr = 80% max. Tip: Sell prior flat first to unlock CPF principal.
- Retain S$20k OA for interest.
- Use Singpass for instant CPF verification on Homejourney.
- Refinance post-MOSP via Bank Rates .
Local insight: In mature estates like Toa Payoh, resale leases average 70 years—budget 20% cash buffer.
FAQ: CPF for HDB Purchase
Can I use full CPF for HDB downpayment?
Yes, after min cash (5-10%), up to age 95 lease rule[1][2].
What is CPF OA for flat limit?
Up to purchase price or VL, prorated for short leases[2].
CPF HDB rules for resale vs BTO?
Resale: VL cap, grants if eligible. BTO: Full for 99 years[1].
How much CPF for S$400k HDB?
Downpayment S$40-100k CPF, balance instalments monthly[4].
Can singles use CPF for HDB?
Yes, via SSCS/JSS, same rules[5].
What if insufficient CPF OA?
Top-up via family, or cash/loan[3].
Next Steps with Homejourney
1. Check eligibility on https://www.homejourney.sg/bank-rates.
2. Search HDB flats at https://www.homejourney.sg/search.
3. Apply multi-bank loans with Singpass—DBS, OCBC, UOB offers in one go.
4. Connect with Homejourney Mortgage Brokers for CPF-optimized plans.
Homejourney builds trust through verified data, user feedback, and safe transactions. Start your CPF HDB purchase journey securely today.
Disclaimer: This guide uses 2026 HDB/CPF data; consult professionals for advice. Homejourney verifies info but not financial advice.
