CPF for HDB Purchase: Homejourney's Complete Usage Guide
The definitive resource for Singaporeans using CPF Ordinary Account (OA) savings to buy HDB flats safely and confidently.
Executive Summary
Homejourney's CPF for HDB purchase guide is your trusted roadmap to using CPF savings for buying Build-To-Order (BTO), resale, or executive flats. Covering CPF OA for flat payments, downpayment rules, grants, and loan repayments, this pillar covers every rule from HDB and CPF Board in 2026. First-time buyers and upgraders learn how to maximize CPF while meeting MSR/TDSR limits, with practical examples and Homejourney tools for eligibility checks. Positioned for user safety, we verify all data from official sources to build trust in your property journey.
Table of Contents
- 1. CPF Basics for HDB Purchases
- 2. Eligibility for Using CPF in HDB Buys
- 3. CPF Downpayment for HDB Flats
- 4. CPF Housing Grants and Top-Ups
- 5. Using CPF for HDB Loan Repayments
- 6. Key CPF HDB Rules and Limits
- 7. BTO vs Resale: CPF Usage Differences
- 8. Calculations and Real Examples
- 9. Pitfalls and Insider Tips
- 10. FAQ
1. CPF Basics for HDB Purchases
Your CPF Ordinary Account (OA) savings can fund HDB flat purchases under strict rules from CPF Board and HDB. OA money covers downpayments, purchase price up to valuation limit, stamp duties, legal fees, and monthly loan instalments. For HDB flats, this applies to BTO, resale, and executive condos during the 99-year lease minimum. Homejourney prioritizes transparency: always check your OA balance via CPF portal before applying.
Key CPF Accounts for Housing:
- Ordinary Account (OA): Primary for HDB payments; earns 2.5% interest (up to 4% with top-ups).
- Special Account (SA): Cannot use directly for HDB; transfer to OA first.
- Medisave Account (MA): Limited to specific fees like Home Protection Scheme (HPS) premiums.
Pro tip from Homejourney experts: First-time buyers often overlook OA accrual interest when planning. Use our mortgage eligibility calculator to simulate CPF usage instantly.[1][5]
What Can CPF Pay For?
| Payment Type | CPF OA Allowed? | HDB Loan | Bank Loan |
|---|---|---|---|
| Option Fee | Yes (cash or CPF) | $500-$2,000 | Up to $5,000 |
| Downpayment | Yes | 5-10% | 25% |
| Purchase Price | Up to Valuation Limit | Yes | Yes |
| Monthly Instalments | Yes | Yes | Yes |
Data from HDB and CPF Board 2026 rules.[1][2][4]
2. Eligibility for Using CPF in HDB Buys
To use CPF for HDB, obtain an HDB Flat Eligibility (HFE) letter first via HDB Flat Portal. It confirms flat eligibility, CPF grants, and HDB loan amount. Singles over 35, families, or upgraders qualify under schemes like Family, MS, 2-Room Flexi. No income ceiling for resale, but affects grants.[1][2][4]
Insider tip: Apply for HFE 1-2 months before BTO launches. Homejourney verifies your eligibility seamlessly with Singpass integration on our property search.[2]
HFE Letter Checklist
- Singpass login to HDB portal.
- Declare household income (ceiling $14,000 for HDB loans).
- Include co-applicants' details.
- Receive letter in 1-2 weeks, valid 6 months.
3. CPF Downpayment for HDB Flats
CPF down payment HDB rules differ by loan type. HDB loan: 10% total (5% at Agreement for Lease, 5% at key collection), fully CPF OA. Bank loan: 25% minimum, CPF up to valuation. Staggered scheme allows 5% initial for eligible buyers.[1][4]
Example: $400,000 BTO 4-room flat, HDB loan. Downpayment $40,000 (CPF OA). Pay $20,000 at signing, $20,000 at keys. Homejourney's bank rates page compares HDB vs bank options from DBS, OCBC, UOB.[1]
Downpayment Table: HDB vs Bank Loan (2026)
| Flat Price | HDB Loan Downpayment (CPF OK) | Bank Loan Downpayment (CPF OK) |
|---|---|---|
| $300,000 | 10% = $30,000 | 25% = $75,000 |
| $500,000 | 10% = $50,000 | 25% = $125,000 |
| $800,000 Resale | 10% = $80,000 | 25% = $200,000 |
Assumes full CPF usage; cash minimum 5% for bank loans.[2]
4. CPF Housing Grants and Top-Ups
Enhanced CPF Housing Grant (EHG) up to $80,000 for families ($9,000 income ceiling), credited to CPF OA. Proximity Housing Grant (PHG): $20,000-$30,000 for living near parents. Apply at flat booking with HFE.[1][2]
Top-up your OA via family members for more downpayment power. Homejourney tip: Use grants to reduce cash outlay, preserving liquidity. See our guide on How to Use CPF for HDB Down Payment: Homejourney Guide ">How to Use CPF for HDB Down Payment.
Popular CPF Grants 2026
- EHG: Up to $80,000 families, $40,000 singles (20+ year lease).
- PHG: $30,000 live-with-parents, $20,000 within 4km.
- Family Grant: Up to $50,000 (extended families).
5. Using CPF for HDB Loan Repayments
CPF OA funds monthly instalments if savings exceed minimum sum ($23,000 at 55 in 2026, projected). Shortfall paid in cash. HDB loans at 2.6% pegged rate (99% payout), banks via SORA + margin (e.g., DBS 3M SORA + 0.5%).
The chart below shows recent interest rate trends in Singapore to contextualize CPF repayment planning:
Rates stable around 3% support predictable CPF usage. Compare live rates on Homejourney's bank-rates from HSBC, Standard Chartered, Maybank.
6. Key CPF HDB Rules and Limits
CPF HDB rules: Lease must cover youngest buyer to 95 for full usage; prorate otherwise. Minimum 20 years lease for any CPF. MSR: 30% of income; TDSR: 55% total debt. LTV 75% for HDB loans (2024 update).[2][5]
OA retention: Up to $20,000 kept earning interest with HDB loans. Insider: For resale in mature estates like Toa Payoh, check lease decay early via Homejourney's Projects ">projects directory.
MSR/TDSR Quick Reference
- MSR: Instalments ≤30% gross income.
- TDSR: Total debt ≤55% income (incl. credit cards).
- Example: $5,000 household income, MSR limit $1,500/month.
7. BTO vs Resale: CPF Usage Differences
BTO: Downpayment staggered, full CPF OK post-MOP. Resale: Immediate 20-25%, OTP up to $5,000 cash/CPF. Resale allows no income ceiling but grants capped.[1][2]
Real example: Ang Mo Kio BTO 4-room ($450k), CPF covers 90%. Yishun resale ($550k, 60-year lease), CPF to 95-year rule limits to $400k valuation. Use Homejourney property search for lease-filtered listings.
8. Calculations and Real Examples
Scenario 1: Young couple, $8,000 income, $100,000 OA each. BTO $420,000. MSR $2,400/month. HDB loan $378,000 (90%), CPF downpayment $42,000. Monthly: $1,600 CPF.
Formula: Max loan = (Income x 30% x 25 years x 12) / (1 - (1+0.026)^-300)^-1 approx. Homejourney calculator auto-computes with your Singpass data.
CPF Usage Simulator
OA Needed = Downpayment + (Price - Valuation) Cash + Instalments. For $500k flat, $450k val: CPF $375k (75% bank LTV), cash $50k + diff $25k.
9. Pitfalls and Insider Tips
Avoid: Forgetting accrued interest on withdrawn CPF (returned principal only). Underestimating post-MOP refunds. Tip: Top-up OA pre-purchase for grants. Homejourney verifies via MyInfo for error-free apps. Post-purchase, check Aircon Services ">aircon services for maintenance.
- Local hack: Time BTO ballot post-bonus for higher OA.
- Refinance alert: See HDB Loan vs Bank Loan 2026 Comparison | Homejourney ">HDB vs Bank Loan Comparison.
10. FAQ: CPF for HDB Purchase
Q: Can I use full CPF OA for HDB downpayment?
A: Yes for HDB loans (10%), partial for bank (25% min cash 5%).[1][4]
Q: What if lease <95 years for youngest buyer?
A: CPF limited to prorated amount; cash/loan for balance.[2][5]
Q: CPF for resale HDB fees?
A: Yes for initial payment, instalments, stamp duties.[2]
Q: How much CPF grant for first-timer?
A: EHG up to $80k if income ≤$9k.[1][2]
Q: Can I use CPF for option fee?
A: Yes, via NETS from CPF-linked account.[1]
Q: MSR exceeded, can I still buy?
A: Opt bank loan if TDSR allows, or save more.[3]
Q: Refinancing HDB with CPF?
A: Yes, but check OA minimum sum. Use Homejourney for multi-bank quotes.
Disclaimer: This guide uses 2026 HDB/CPF rules; consult professionals for advice. Homejourney supports your journey with verified tools.
Next Steps: Calculate eligibility at Homejourney bank-rates, search flats at property search, and apply via Singpass for DBS, OCBC, UOB offers. Trust Homejourney for safe, transparent CPF HDB purchase guidance.
