How to Use CPF for HDB Down Payment: Homejourney's 2026 Guide

How to Use CPF for HDB Down Payment in 2026

You can use your CPF Ordinary Account (OA) savings to pay your entire HDB down payment of 25%, or combine it with cash, making homeownership accessible without draining your savings.[1][2] This applies to both Build-To-Order (BTO) flats and resale HDB flats, with options like the Staggered Downpayment Scheme reducing initial payments to as low as 2.5% for eligible young buyers.[1][2][5] At Homejourney, we prioritize your safety by verifying all eligibility details and providing transparent guidance to help you make confident decisions about this significant financial commitment.

The ability to leverage CPF for your down payment is one of Singapore's most powerful homeownership tools, yet many first-time buyers don't fully understand their options. This guide walks you through exactly how to use CPF strategically, avoid common pitfalls, and maximize your financial flexibility when purchasing an HDB flat.

Understanding Your HDB Down Payment Requirements

In 2026, the standard down payment for HDB flats is 25% of the purchase price.[1][2][3] However, the exact amount you need to pay upfront depends on whether you're taking an HDB loan or a bank loan, and whether you qualify for the Staggered Downpayment Scheme.

With an HDB loan, you can pay the full 25% using CPF OA or cash with no cash minimum requirement.[1][2] For bank loans, at least 5% must be paid in cash, with the remaining 20% available via CPF OA or cash.[1][2][4] This distinction is critical because it directly affects how much cash you need to reserve.

HDB Loan vs Bank Loan Down Payment Breakdown

The table below shows the key differences in down payment requirements:

Loan Type	Total Down Payment	CPF Usage	Cash Minimum
HDB Loan	25%	100%	0%
Bank Loan	25%	Up to 20%	5%

For example, if you're purchasing an HDB flat for $400,000 with an HDB loan, your 25% down payment ($100,000) can be paid entirely through CPF OA. With a bank loan, you'd need $20,000 in cash and could cover the remaining $80,000 with CPF OA.[1][4]

To compare mortgage options and calculate your exact borrowing power, use Homejourney's mortgage eligibility calculator, which factors in your CPF balance, income, and TDSR limits across DBS, OCBC, UOB, HSBC, Standard Chartered, and other major banks.

The Staggered Downpayment Scheme: Pay Less Upfront

One of the most valuable schemes for young HDB buyers is the Staggered Downpayment Scheme, which allows you to split your down payment across two milestones instead of paying everything upfront.[1][2][3] This dramatically improves cash flow management for first-time buyers.

Standard Staggered Payment Schedule

For most BTO buyers, the scheme works as follows:

First instalment (at signing of Agreement for Lease): 5% of flat price using CPF OA or cash
Second instalment (at key collection): 20% of flat price using CPF OA or cash

This means instead of arranging 25% upfront, you only need to secure 5% initially, giving you time to accumulate additional CPF savings or arrange financing before the second payment.[2][3]

Enhanced Scheme for Young Eligible Couples

If you qualify as an eligible young couple, the initial payment drops even further. Eligible couples are defined as:

Both first-timer applicants, or one first-timer and one second-timer applicant
At least one applicant obtained a valid HDB Flat Eligibility (HFE) letter on or before their 30th birthday
You've booked a 5-room or smaller flat

With deferred income assessment (if you qualify), your payment schedule becomes:[1]

First instalment: 2.5% of flat price (instead of 5%)
Second instalment: 22.5% of flat price (instead of 20%)

This dramatic reduction—from 25% to just 2.5% initially—makes homeownership significantly more accessible for younger Singaporeans still building their CPF balances.[1] For a $400,000 flat, this means paying just $10,000 upfront instead of $100,000.

Step-by-Step: Using CPF for Your Down Payment

Here's the exact process to use CPF for your HDB down payment, from eligibility assessment to final payment:

Step 1: Obtain Your HDB Flat Eligibility (HFE) Letter

Before you can calculate your exact down payment or access HDB's online tools, you'll need an HFE letter from HDB.[1] This letter confirms your eligibility to purchase an HDB flat and is required to access the HDB resale down payment calculator and apply for CPF withdrawal approval.

Apply for your HFE letter through the HDB website or visit your nearest HDB branch. Processing typically takes 2-4 weeks. Keep this letter safe—you'll need it for multiple stages of the purchase process.

Step 2: Calculate Your Exact Down Payment Amount

Once you have your HFE letter, use HDB's resale down payment calculator (for resale flats) or work with your HDB sales team (for BTO flats) to determine your exact 25% down payment amount based on the agreed purchase price.

For BTO buyers, clarify with HDB whether you're eligible for the Staggered Downpayment Scheme and confirm the exact payment schedule. Document this in writing to avoid confusion later.

Step 3: Check Your CPF OA Balance and Plan Your Financing

Log into your CPF account via the CPF website or mobile app to verify your current Ordinary Account balance.[4] This tells you how much of your down payment you can cover with CPF, and how much additional cash you'll need to arrange.

Important: Remember that CPF grants (if you qualify) will be applied automatically to reduce your payable amount.[1] Also account for the Basic Healthcare Sum (BHS) requirement—you must maintain a minimum balance in your OA after using CPF for your down payment and monthly mortgage instalments.

If your CPF balance is insufficient, you have two options: wait to accumulate more savings, or use a combination of CPF and cash. To understand your full financing options, use Homejourney's bank rates page to compare HDB loan vs bank loan options and see which banks offer the best rates for your situation.

Step 4: Select Your Payment Method and Loan Type

Decide whether you'll:

Pay 100% via CPF OA (if taking HDB loan and have sufficient balance)
Pay 100% in cash (not recommended for most buyers)
Use a combination of CPF and cash
Opt for the Staggered Downpayment Scheme if eligible (BTO only)

For bank loan buyers, confirm the 5% cash minimum requirement with your chosen bank. At Homejourney, you can compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other major banks to find the best option for your financial situation.

Step 5: Submit Your Resale Transaction or BTO Application

For resale flats, submit your resale transaction via the HDB Resale Portal with all required documentation, including your HFE letter and proof of CPF balance.[1] For BTO flats, complete your booking and Agreement for Lease signing with HDB.

HDB will review your application and approve your CPF withdrawal amount. This approval is critical—without it, you won't be able to access your CPF funds for the down payment.

Step 6: HDB Financial Plan Confirmation

HDB will review your application and approve your CPF withdrawal for the down payment.[1] For young couples using the staggered scheme, CPF may be released in 5-25% tranches at different stages. You'll receive written confirmation of the approved CPF withdrawal amount and the payment schedule.

Step 7: Pay Your Down Payment at the Agreed Milestones

Transfer your CPF OA to the seller at the agreed milestones—either immediately (for standard down payment) or in stages (for staggered scheme: 2.5%-5% initial, then remaining balance at key collection).[1][2] Your bank or HDB will provide specific instructions on how and when to make this transfer.

For staggered payments, the timeline typically looks like this:

Upon signing Agreement for Lease: Transfer 5% (or 2.5% if eligible) via CPF to HDB or the seller's solicitor
Upon key collection (typically 3-4 years later for BTO): Transfer the remaining 20% (or 22.5%) via CPF

CPF withdrawal is processed through the CPF Board, and funds are transferred directly to the designated account. This typically takes 3-5 business days.

Critical Considerations When Using CPF for Down Payment

Maintain Your Basic Healthcare Sum (BHS)

After using CPF for your down payment and monthly mortgage instalments, you must maintain a minimum balance in your Ordinary Account—the Basic Healthcare Sum (BHS) requirement. If you fall short, you'll need to top up your CPF within 3 months of key collection.[1]

Check the current BHS amount on the CPF website and factor this into your CPF withdrawal planning. This is non-negotiable and protects your retirement healthcare needs.

CPF Grants Don't Count Toward Down Payment Ceiling

If you qualify for CPF Housing Grants (up to $120,000 for families), these are applied automatically to reduce your payable amount but don't count toward your down payment ceiling.[1][5] This means grants effectively reduce the cash or CPF you need to contribute.

Plan for Monthly Mortgage Instalments

Remember that using CPF for your down payment is just the first step. You'll also be using CPF for your monthly mortgage instalments (if taking an HDB loan). Ensure your total CPF usage—down payment plus estimated monthly payments—doesn't deplete your OA balance below the BHS requirement.

Use the CPF Home Purchase Planner at cpf.gov.sg/homeplanner to model different scenarios and understand your long-term CPF impact.