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][6] Homejourney prioritizes your safety by verifying all eligibility details and providing transparent guidance to help you make confident decisions about using your CPF for your HDB purchase.
Understanding how to strategically use your CPF for your down payment is one of the most important financial decisions you'll make as a first-time homebuyer in Singapore. This guide walks you through the process, eligibility requirements, and practical steps to maximize your CPF usage while protecting your retirement savings.
Understanding HDB Down Payment Requirements
In 2026, the standard down payment for HDB flats is 25% of the purchase price.[1][2][3] With an HDB loan, you can pay the full 25% using CPF OA or cash. For bank loans, at least 5% must be paid in cash, with the remaining 20% via CPF OA or cash.[1][2][4]
The key distinction lies in your loan choice. If you're taking an HDB loan (offered directly by HDB), you have maximum flexibility—you can fund the entire 25% down payment from your CPF OA without any cash requirement. If you're opting for a bank loan through institutions like DBS, OCBC, UOB, or HSBC, the structure differs slightly, requiring at least 5% in cash upfront.
HDB Loan vs Bank Loan Down Payment Breakdown
| Loan Type | Total Down Payment | CPF Usage | Cash Minimum |
|---|---|---|---|
| HDB Loan | 25% | 100% | 0% |
| Bank Loan | 25% | Up to 20% | 5% |
For a $400,000 HDB flat purchase with an HDB loan, your 25% down payment ($100,000) can come entirely from your CPF OA. With a bank loan, you'd need $20,000 in cash and can use up to $80,000 from your CPF OA.
To compare bank loan options and calculate your exact eligibility across DBS, OCBC, UOB, HSBC, Standard Chartered, and other lenders, use Bank Rates to see current rates and calculate your borrowing power instantly.
Staggered Downpayment Scheme: Pay Less Upfront
The Staggered Downpayment Scheme is a game-changer for BTO buyers, allowing you to spread your down payment across two milestones instead of paying everything upfront.[1][2][3] For standard cases, you pay 5% when signing the Agreement for Lease (approximately six months after booking) and 20% when collecting your keys. For eligible young couples, the initial payment drops to just 2.5%, with the remaining 22.5% due at key collection.[6]
To qualify for the Staggered Downpayment Scheme, you must meet these criteria:[3]
- Both applicants are first-time buyers, OR you're a couple with one first-timer and one second-timer
- You obtained a valid HDB Flat Eligibility (HFE) letter on or before the younger applicant's 30th birthday
- You've booked a 5-room flat or smaller
This scheme is particularly valuable because it reduces your immediate cash outlay and allows your salary to grow before the second payment is due. For young couples purchasing their first flat together, spreading the down payment can make homeownership feel more manageable financially.
Step-by-Step Guide: Using CPF for HDB Down Payment
Homejourney has simplified the CPF down payment process into clear, actionable steps. Follow this process whether you're buying a BTO or resale flat:
Step 1: Obtain Your HDB Flat Eligibility (HFE) Letter
Your HFE letter is the foundation of your home purchase journey. Apply via the HDB website or visit your nearest HDB branch to request this letter. You'll need your NRIC, proof of income, and employment letter. The HFE letter confirms your eligibility to purchase an HDB flat and is required for all CPF calculators and tools.[1][2]
Step 2: Check Your CPF Balance and Verify Sufficiency
Log into your CPF portal (via Singpass) and review your Ordinary Account (OA) balance. Remember that you cannot withdraw your entire OA balance—you must preserve your Basic Healthcare Sum (BHS), which is currently $68,500 for those born in 1954 or later. Calculate: Available CPF = Total OA Balance - BHS. Ensure your available CPF covers at least 25% of your intended purchase price.[1][6]
Step 3: Calculate Your Down Payment Amount
Use HDB's official resale calculator (available on the HDB website) or Homejourney's eligibility calculator to determine your exact down payment. Input your purchase price, loan type, and desired loan amount. The calculator will show you precisely how much CPF you need and how much cash you must provide.[1]
Step 4: Decide on Your Payment Structure
Choose whether to pay 100% via CPF (if using HDB loan), a combination of CPF and cash, or all cash. If you're a BTO buyer and eligible, opt into the Staggered Downpayment Scheme to reduce your initial payment burden.[1][2]
Step 5: Submit Your Transaction via HDB Resale Portal (Resale Flats)
For resale flats, submit your transaction details through the HDB Resale Portal. Upload your HFE letter, financial documents, and indicate your CPF payment preference. HDB will review and approve your CPF withdrawal amount.[1]
Step 6: Confirm Your Financial Plan with HDB
Once HDB processes your application, they'll send you a confirmation of your financial plan. Review this carefully to ensure the CPF withdrawal amount matches your agreement. This step typically takes 3-5 working days.[1]
Step 7: Transfer CPF at Key Milestones
For BTO flats on the Staggered Scheme, transfer your first CPF payment (5% or 2.5%) when signing the Agreement for Lease. Transfer the remaining balance when collecting your keys. For resale flats, the entire CPF amount is transferred at the resale completion appointment. HDB will provide clear instructions on how to authorize the CPF withdrawal.[1][2]
Important CPF Withdrawal Rules to Know
You must use your OA savings before an HDB loan is granted. This means HDB will require you to exhaust your available CPF balance (after preserving your BHS) before approving your housing loan for the remaining amount.[1] This rule protects your retirement by ensuring you're not taking unnecessary loans when you have savings available.
If you're taking a bank loan instead of an HDB loan, you have more flexibility. Banks allow you to set aside any amount of CPF and pay your down payment with cash instead, giving you more control over your retirement savings preservation.[1]
For resale flats, CPF payments are processed once you confirm your financial plan through the HDB Resale Portal. If you're paying any portion in cash, you'll need to submit a Cashier's Order during the resale completion appointment.[1]
Protecting Your Retirement While Buying Your Home
One of Homejourney's core commitments is helping you make decisions that protect both your immediate homeownership goals and your long-term financial security. When using CPF for your down payment, remember these key principles:
- Preserve Your Basic Healthcare Sum (BHS): Never withdraw below your BHS threshold. This amount is reserved for your healthcare needs in retirement and cannot be touched.
- Consider Your Retirement Savings: While you can use 100% of your available OA for down payment (with HDB loans), think about whether this leaves you with sufficient retirement savings in your Special Account (SA).
- Factor in Mortgage Payments: Ensure your monthly mortgage payments don't exceed 30% of your gross household income (the TDSR limit). This protects you from over-leveraging.
- Maintain Emergency Reserves: Keep 3-6 months of living expenses in cash savings outside of CPF for unexpected expenses.
Common Mistakes to Avoid When Using CPF for Down Payment
Mistake 1: Not Checking Your BHS Before Planning. Many buyers assume they can access their entire OA balance. Always subtract your BHS first. If your OA is $150,000 and your BHS is $68,500, you only have $81,500 available for down payment.
Mistake 2: Forgetting About Stamp Duty. Stamp duty (typically $6,600-$12,600 depending on property price) must be paid in cash and is reimbursable from CPF only after payment. Budget for this cash outlay upfront.[3]
Mistake 3: Not Comparing Loan Options. HDB loans and bank loans have different CPF requirements and interest rate structures. Use Homejourney's Bank Rates to compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and other lenders before deciding which loan type suits your situation best.
Mistake 4: Ignoring the Staggered Scheme If Eligible. If you qualify for the Staggered Downpayment Scheme, opting in can significantly ease your financial burden in the first year of ownership. Don't overlook this benefit.
Mistake 5: Not Planning for Mortgage Protection. While not directly part of your down payment, many buyers forget to budget for Mortgage Reducing Term Assurance (MRTA) or mortgage protection insurance. This protects your family if you pass away before the loan is fully repaid. Learn more about Home Protection Scheme HPS: Complete HDB Buyers Guide | Homejourney ">Home Protection Scheme (HPS) for HDB buyers and how it complements your mortgage.
Frequently Asked Questions About Using CPF for HDB Down Payment
Q: Can I use 100% CPF for my HDB down payment?
Yes, if you're taking an HDB loan. You can use up to 100% of your available CPF OA (after preserving your BHS) for the 25% down payment. With bank loans, you need at least 5% in cash.[1][2][3]
Q: What's the initial payment under the Staggered Downpayment Scheme?
For standard BTO buyers, it's 5% of the purchase price. For eligible young couples (at least one under 30, both first-timers), it's just 2.5%.[1][2][6]
Q: Can I use my Special Account (SA) CPF for down payment?
No. Only your Ordinary Account (OA) can be used for down payment. Your SA is reserved for retirement and cannot be withdrawn for property purchases.
Q: How long does CPF approval take?
For BTO flats, CPF approval typically takes 3-5 working days after you submit your financial plan. For resale flats, it depends on HDB's processing timeline, usually 5-10 working days.
Q: What happens if my CPF balance isn't enough for 25% down payment?
You can pay the shortfall in cash. For example, if you need $100,000 down payment but only have $70,000 in available CPF, you'd pay $70,000 from CPF and $30,000 in cash. Alternatively, explore whether you qualify for HDB grants (up to $80,000 for families or $40,000 for singles).[7]
Q: Can I withdraw CPF for down payment before my HFE letter is approved?
No. You must have a valid HFE letter before HDB will process any CPF withdrawal. This is a mandatory requirement for all down payment transactions.
