CPF for Home Loan: Complete Guide to Using Your CPF in Singapore

Your Central Provident Fund (CPF) is one of the most powerful tools for buying property in Singapore. Yet many first-time buyers don't fully understand how to leverage it effectively. This comprehensive guide walks you through every aspect of using CPF for home loans—from down payments to monthly repayments—so you can make confident decisions and maximize your purchasing power.

At Homejourney, we believe informed buyers make better decisions. That's why we've created this definitive resource on CPF housing, combining official regulations with practical insights to help you navigate Singapore's property market safely and strategically.

What is CPF Housing and Why It Matters
Understanding CPF OA Savings for Property
Using CPF for Down Payments
CPF Housing Grants: Free Money for Buyers
Repaying Your Mortgage with CPF
HDB Loans vs Bank Loans: CPF Implications
Critical Considerations When Using CPF
Calculating Your CPF Housing Budget
Frequently Asked Questions
Next Steps with Homejourney

What is CPF Housing and Why It Matters

Your CPF Ordinary Account (OA) is specifically designed to help you achieve homeownership in Singapore. Unlike your Special Account (SA) or Medisave Account (MA), your OA savings can be withdrawn for property-related expenses, making it the cornerstone of most Singaporeans' home purchase strategy.[2]

The CPF Housing Scheme allows you to use accumulated OA savings for multiple purposes: purchasing an HDB flat, buying or building private residential property, funding down payments, covering legal and stamp fees, and servicing housing loans.[2] This flexibility is why understanding CPF is critical—it directly impacts how much property you can afford and how much cash you need to keep in reserve.

For most Singaporeans, CPF represents 20-30% of their total home purchase funds. Getting this component right means the difference between stretching too thin financially and maintaining healthy retirement savings. Homejourney's approach prioritizes your long-term financial security alongside your homeownership goals.

Understanding CPF OA Savings for Property

What Can You Use CPF OA For?

Your CPF OA balance can be deployed across several property-related expenses:[2]

Purchase price of HDB flats or private residential properties
Down payment (minimum 25% for bank loans, 10% for HDB loans)
Stamp duties and legal fees associated with property purchase
Monthly mortgage instalments for both HDB and bank loans
Home Protection Scheme premiums (HDB flats only)
Construction loans for building private properties
Vacant land purchases (private properties only)

How Much CPF OA Can You Actually Access?

Not all your OA balance is available for property purchase. Singapore requires you to maintain a CPF Housing Withdrawal Limit based on your age and retirement needs. The key principle: you must preserve enough CPF for retirement security.

For members below 55 years old, your OA balance minus your housing withdrawal limit determines how much you can use for property. This withdrawal limit increases with age and is recalculated based on your life expectancy and retirement income needs. The CPF Board regularly updates these limits to ensure Singaporeans can retire comfortably.[5]

The smart approach: Use a combination of CPF OA and cash savings. Consider using CPF for the down payment and stamp fees, while reserving cash for monthly mortgage instalments where possible. This preserves your CPF for retirement while still leveraging it strategically.[5]

Using CPF for Down Payments

Minimum Down Payment Requirements

Singapore's property market has standardized down payment requirements based on property type and financing source:

Loan Type	Minimum Down Payment	Can Use CPF?
HDB Concessionary Loan	10% (for first-time buyers)	Yes, CPF OA
Bank Loan (HDB)	25%	Yes, CPF OA
Bank Loan (Private)	25%	Yes, CPF OA
Foreign Buyer Bank Loan	25% (cash only)	No CPF allowed

Important note: Only Singapore citizens and permanent residents can use CPF for property purchases. Foreigners must provide 25% down payment in cash.[4]

Strategic Down Payment Planning

Here's where Homejourney's philosophy of user safety becomes critical. While you can use most of your CPF OA for a down payment, should you?

Consider this scenario: A 35-year-old buyer with $150,000 in CPF OA and $50,000 in cash savings is buying a $500,000 HDB resale flat with a bank loan. They could theoretically use all $150,000 CPF for the down payment, but this would leave them with only $50,000 total liquid assets for emergencies, renovations, and monthly instalment payments.

A more prudent approach: Use $100,000 CPF for down payment + stamp fees, keep $50,000 CPF + $50,000 cash as emergency reserves. This preserves retirement savings while maintaining financial flexibility. Use Homejourney's mortgage calculator to model different scenarios and see how down payment choices affect your monthly obligations and financial security.[3]

CPF Housing Grants: Free Money for Buyers

Enhanced CPF Housing Grant (EHG)

The Enhanced CPF Housing Grant is available to first-time buyers[5] This is essentially free money from the government to reduce your property costs.

EHG Amount: Up to $120,000 depending on your household income and family composition. The grant is means-tested, with higher grants for lower-income families.

Key advantage: Unlike CPF, this grant doesn't need to be refunded when you sell. It's yours to keep. This makes EHG incredibly valuable—every dollar of grant reduces the amount you need to borrow or withdraw from CPF.

Proximity Housing Grant (PHG)

The Proximity Housing Grant supports families who choose to live near their parents or adult children. Available for resale HDB flats only, PHG provides up to $80,000 to families meeting specific proximity requirements.[5]

PHG Eligibility: Your flat must be within 4km of your parents' or married child's residence. This encourages multi-generational communities while easing your down payment burden.

CPF Housing Grant (CHG) for Lower-Income Buyers

For first-time buyers with household income up to $14,000/month, the CPF Housing Grant offers subsidies up to $80,000 for resale HDB purchases.[4] This is specifically designed to help lower-income Singaporeans achieve homeownership.

Strategic insight: If you qualify for any housing grant, prioritize using the grant before depleting your CPF OA. This preserves your retirement savings while achieving your homeownership goals. Homejourney's application process can help you identify which grants you qualify for.

Repaying Your Mortgage with CPF

How CPF Monthly Instalment Repayment Works

After securing your mortgage, you can set up automatic CPF deductions to pay your monthly housing loan instalments.[1] This is one of the most powerful features of Singapore's CPF system—your OA balance continues earning interest while servicing your debt.

The process is straightforward:[1]

Log into the CPF website using Singpass
Navigate to Tools and Services → Forms and e-applications
Select Home Ownership → Manage CPF usage for your home
Choose Commence Monthly Instalment
Enter your property details, financier (e.g., DBS Bank), and monthly instalment amount
Select the month to begin automatic deductions
Review and submit your application

Once approved, your CPF OA will automatically be debited each month to cover your housing loan payment. You can modify or cease this arrangement anytime through the same online portal.[1]

CPF Interest Advantage During Repayment

Here's a critical insight many buyers miss: Your CPF OA continues earning interest (currently up to 4% per annum) while being used to repay your mortgage. If your mortgage rate is higher than CPF's interest rate, you're effectively paying the difference—but you're also maintaining a growing CPF balance that counts toward your retirement.

Example: If your CPF OA earns 4% interest and your mortgage rate is 3.5%, you're actually ahead. But if your mortgage rate is 5%, you're paying 1% more than CPF's return. This is why some buyers prefer using cash for mortgage payments when possible—to preserve CPF's guaranteed returns.[5]

Lump Sum Repayment with CPF

You can also make partial or full lump sum repayments using your CPF OA.[1] This is particularly useful if you receive bonuses, inheritance, or have surplus CPF balance.

Lump sum repayment process:[1]

Log into CPF website with Singpass
Navigate to Home Ownership → Manage CPF usage for your home
Select Make Lump Sum Payment
Enter your CPF repayment amount and deduction date (must be 3 working days before payment)
Submit your application

Strategic consideration: Before making lump sum repayments, evaluate whether paying down your mortgage faster or preserving CPF for retirement makes more financial sense. Homejourney's mortgage brokers can help you model both scenarios.

HDB Loans vs Bank Loans: CPF Implications

HDB Concessionary Loan

Interest Rate: Currently 2.6% per annum (concessionary rate set by HDB)
Loan-to-Value: Up to 90% for first-time buyers, 75% for subsequent purchases
Maximum Loan Period: 25 years or until age 65, whichever is shorter
CPF Usage: Can use CPF OA for down payment (10% minimum) and monthly instalments

The HDB loan is often the most affordable option for HDB flat purchases because of the concessionary interest rate. This lower rate means your CPF OA goes further in servicing the debt, leaving more balance for retirement.[6]

Bank Loan

Interest Rate: Variable SORA-based rates (typically 3.5-4.5% in 2026) or fixed rates
Loan-to-Value: 75% maximum for both HDB and private properties
Maximum Loan Period: 25 years or until age 65, whichever is shorter
CPF Usage: Can use CPF OA for down payment (25% minimum) and monthly instalments

Bank loans offer flexibility and are required for private property purchases. Most banks now offer SORA-linked rates, which track the Singapore Overnight Rate Average. Compare current rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and other major lenders on Homejourney's bank rates page to find the best deal for your situation.Bank Rates

The chart below shows recent SORA trends to help you understand how rates have moved:

CPF Impact on Loan Choice

Your CPF balance should influence your loan type decision. If you have substantial CPF OA and limited cash savings, the HDB concessionary loan's lower interest rate means your CPF serves you better. If you have mixed CPF and cash, a bank loan offers more flexibility in how you structure your payments.

Use Homejourney's mortgage eligibility calculator to compare how different loan types affect your borrowing power and monthly obligations based on your specific CPF balance and income.

Critical Considerations When Using CPF

The Retirement Preservation Principle

Singapore's CPF system has a fundamental principle: preserve enough for retirement. While you can use CPF for property, you must ensure you're not compromising your retirement security.[7]

Key guideline: Your monthly housing instalment should not exceed 25% of your gross monthly income. Your total debt servicing ratio (all debts combined) should not exceed 55%.[7] These aren't just recommendations—they're prudent financial boundaries that protect your long-term security.

Homejourney's approach prioritizes your safety. We encourage buyers to use the CPF Home Purchase Planner (available on the CPF website) to calculate how much property you can afford while maintaining adequate retirement savings.[3] This tool factors in your age, income, existing CPF balance, and retirement goals.

Refund Requirements When Selling

This is critical: When you sell your property, you must refund to your CPF account the principal amount you withdrew plus accrued interest. This refund is mandatory before you receive any sales proceeds.[2]

Example calculation: If you withdrew $100,000 CPF for your down payment 10 years ago, and your property sells for $600,000, you must refund the $100,000 principal plus interest earned to your CPF account first. Only the remaining proceeds go to you as cash.

Strategic insight: The earlier you make voluntary CPF refunds (if you sell before fully retiring), the more interest you'll earn to boost your CPF savings for retirement. Additionally, you'll receive more cash proceeds when you eventually sell since you'll owe less to your CPF account.[2]

Co-Ownership and CPF

If you're buying with a spouse or co-owner, both of your CPF OA balances can be used. However, each person's CPF is tracked separately, and each must maintain their own housing withdrawal limits. When the property is sold, each owner's CPF refund obligation is calculated individually.[3]

This is particularly important for married couples: Ensure both spouses understand their individual CPF positions and retirement implications. Homejourney's mortgage brokers can help you structure co-ownership to optimize both parties' CPF usage.

Age Considerations

Your age significantly impacts CPF housing usage. Members below 55 have more flexibility, while those 55 and above face stricter withdrawal limits and shorter loan tenures.[6]

For members below 55: You can use CPF OA more freely, but your loan tenure is capped at 25 years or until age 65, whichever is shorter. A 40-year-old can borrow for maximum 25 years, but a 50-year-old can only borrow for 15 years.

For members 55 and above: CPF withdrawal rules become stricter. You must maintain a higher CPF balance for retirement. Loan tenures are significantly shorter. If you're buying after 55, consult CPF directly about your specific withdrawal limits.

Calculating Your CPF Housing Budget

The CPF Home Purchase Planner

The CPF Board provides a free Home Purchase Planner tool that calculates your maximum purchase budget based on your CPF balance, income, and retirement goals.[3] This is the most accurate way to determine how much property you can afford.

The planner considers:[3]

Your CPF OA balance and withdrawal limit
Your co-owner's CPF balance (if applicable)
Combined household income
Existing cash savings
Sales proceeds from selling your current property (if applicable)
Mortgage servicing ratio (25% of gross income maximum)
Loan-to-value limits (75% for most loans)
Prevailing interest rates (3% for HDB, 4% for bank loans in calculations)
Loan tenure (maximum 25 years or until age 65)

The planner then calculates two key numbers: (1) Your maximum borrowing capacity based on income and LTV limits, and (2) Your purchase budget based on available capital (CPF + cash).[3]

Manual Calculation Example

Scenario: 35-year-old first-time buyer with $150,000 CPF OA, $50,000 cash savings, $60,000 gross monthly income, buying an HDB resale flat.

Step 1: Calculate Maximum Loan Amount
Maximum monthly instalment = 25% × $60,000 = $15,000
At 2.6% HDB interest rate over 25 years, this supports approximately $400,000 loan

Step 2: Calculate Purchase Budget from Loan
If 75% LTV, then 25% down payment needed
$400,000 loan ÷ 0.75 = $533,000 maximum purchase price

Step 3: Calculate Purchase Budget from Capital
Available capital = $150,000 CPF + $50,000 cash = $200,000
At 25% down payment requirement: $200,000 ÷ 0.25 = $800,000 maximum purchase price

Step 4: Take the Lower Number
Your maximum purchase budget = $533,000 (limited by income, not capital)
Down payment from CPF = $133,250
Loan amount = $399,750

Step 5: Verify Retirement Impact
CPF remaining after purchase = $150,000 - $133,250 = $16,750
This is quite low for retirement. Consider using more cash and less CPF.

This example shows why Homejourney emphasizes using the CPF Home Purchase Planner—it ensures you're making decisions that balance homeownership with retirement security.[3]

Using Homejourney's Mortgage Tools

Homejourney's mortgage eligibility calculator integrates CPF calculations directly into your loan assessment. Input your CPF balance, income, and desired property price, and instantly see how much you can borrow and what your monthly obligations will be. This helps you make confident decisions before applying.Bank Rates

Frequently Asked Questions About CPF and Home Loans

Can I Use My Spouse's CPF for My Property Purchase?

Yes, but only if your spouse is a co-owner of the property. Each owner's CPF OA can be used for the property, and each maintains their own withdrawal limit. You cannot use your spouse's CPF if they're not on the title deed. This is why many couples choose joint ownership—it doubles available CPF capital.

What Happens to My CPF If I Sell My Property?

You must refund to your CPF account the principal amount you withdrew plus all accrued interest. Only after this refund are you entitled to the remaining sales proceeds as cash. This refund is deducted automatically from your sale proceeds before you receive payment.[2]

Can I Use CPF to Pay Off My Mortgage Early?

Yes. You can make lump sum CPF repayments to reduce your outstanding loan balance. However, consider whether paying down your mortgage or preserving CPF for retirement makes more financial sense. Homejourney's mortgage brokers can help you evaluate this decision based on your specific situation.

Is It Better to Use CPF or Cash for Monthly Mortgage Payments?

This depends on your circumstances. CPF OA earns interest (up to 4% per annum), so if your mortgage rate is lower than CPF's interest rate, you might prefer using cash. However, CPF provides a guaranteed return, while cash can be spent. Many financial advisors recommend using a mix: CPF for down payment and stamp fees, cash for monthly instalments where possible.[5]

What's the Difference Between CPF OA and SA for Property?

Only CPF OA can be used for property purchases. Your Special Account (SA) is reserved for retirement and cannot be withdrawn for housing. Your Medisave Account (MA) is for healthcare only. This is why your OA balance is critical for property planning.

Can Foreigners Use CPF for Property?

No. Only Singapore citizens and permanent residents can use CPF for property purchases. Foreigners must provide 25% down payment in cash and cannot access any CPF benefits.[4]

How Does CPF Withdrawal Limit Work?

Your CPF OA has a withdrawal limit based on your age and retirement needs. The CPF Board calculates this limit to ensure you preserve enough for retirement. As you age, this limit increases, but you can never withdraw your entire OA balance before retirement. Check your CPF statement or the CPF website to see your specific withdrawal limit.[5]

Can I Use CPF to Buy an Investment Property?

Yes, you can use CPF OA to purchase private residential investment properties. However, the same refund rules apply—when you sell, you must refund the principal plus interest to your CPF account. Additionally, investment property loans typically have stricter lending criteria and may require higher down payments.

What If My CPF Balance Is Very Low?

If your CPF OA is low, you'll need to rely more on cash savings and mortgage borrowing. Ensure you still qualify for the mortgage based on income and debt servicing ratios. You may also qualify for CPF housing grants if you're a first-time buyer with lower income. Explore all grant options before assuming you can't afford to buy.

How Does Refinancing Affect My CPF?

When you refinance from one bank to another, your CPF repayment arrangement transfers to the new lender. You can continue using CPF OA for monthly instalments with the new bank. Refinancing doesn't affect your CPF withdrawal limit or retirement obligations. Homejourney can help you compare refinancing options across multiple banks to ensure you get the best rate.Bank Rates

What Happens to My CPF If I Default on My Mortgage?

Defaulting on your mortgage has serious consequences, including potential foreclosure and damage to your credit rating. Your CPF OA will still be subject to repayment obligations when you eventually sell. This is why Homejourney emphasizes ensuring your monthly instalment is within 25% of your gross income—to prevent financial stress that could lead to default.

Next Steps: Your CPF Home Loan Journey with Homejourney

Understanding CPF is the foundation of smart property buying in Singapore. But knowledge alone isn't enough—you need the right tools and guidance to turn that knowledge into action.

Step 1: Calculate Your CPF Housing Budget

Start with the CPF Home Purchase Planner on the CPF website to understand your maximum purchase budget. Then use Homejourney's mortgage eligibility calculator to see how much you can borrow and what your monthly obligations will be. This gives you a clear target price range.Bank Rates

Step 2: Compare Current Mortgage Rates

Visit Homejourney's bank rates page to see current rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other major lenders. Interest rate differences of even 0.25% can save you tens of thousands over your loan tenure. Compare rates, tenure options, and loan features side-by-side.Bank Rates

Step 3: Find Properties Within Your Budget

Use Homejourney's property search to explore HDB flats, private condominiums, and landed properties within your calculated budget. Filter by location, price, property type, and amenities. Save your favorites and track market movements.Property Search

Step 4: Apply for Your Mortgage

When you're ready, submit your mortgage application through Homejourney's multi-bank application system. Using Singpass/MyInfo integration, your income, employment, and CPF data are verified instantly, speeding up the approval process. You can apply to multiple banks simultaneously and compare their final offers.Bank Rates