How to Use CPF for HDB Down Payment: 2025 Complete Guide
You can use your CPF Ordinary Account (OA) savings to pay up to the full 25% HDB downpayment required in 2025, combined with cash if needed, for both BTO and resale flats.[1][2][7] This approach minimizes cash outlay while leveraging your CPF contributions for homeownership. Homejourney simplifies this with verified tools to check eligibility and plan safely.
This cluster guide focuses on using CPF for HDB down payment, linking to our pillar HDB Grant Financing: Maximize Benefits Guide for full coverage on HDB grant financing and CPF housing grant strategies.
Understanding HDB Downpayment Rules in 2025
In 2025, the Loan-to-Value (LTV) limit is 75% for both HDB loans and bank loans, requiring a 25% downpayment.[1][2] For HDB loans, the entire 25% can come from CPF OA savings or cash—no mandatory cash portion.[2] Bank loans require at least 5% cash, with the rest from CPF OA or cash.[1][2]
Staggered Downpayment Scheme applies to eligible first-time buyers of uncompleted flats (BTO, SBF, OBF), splitting payments: 2.5%-5% at Agreement for Lease (AFL) signing, and the balance at key collection 2-4 years later.[1][3][4] Resale flats require full upfront payment.[1]
| Loan Type | Max LTV | Downpayment | Cash Required |
|---|---|---|---|
| HDB Loan | 75% | 25% (CPF OA/cash) | No |
| Bank Loan (75% LTV) | 75% | 5% cash + 20% CPF/cash | Yes, min 5% |
Use Homejourney's mortgage calculator to model your CPF for HDB down payment based on current CPF balances.
Step-by-Step: How to Use CPF for HDB Down Payment
Follow these actionable steps to deploy your CPF OA safely for your HDB purchase.
- Check CPF OA Balance: Log into your CPF account via Singpass. Ensure sufficient OA savings for 25% of purchase price plus accrued interest. Example: For $400,000 BTO flat, need $100,000 in OA.[7]
- Confirm Eligibility for Staggered Scheme: First-timers under 30 or with Deferred Income Assessment pay 2.5% initially (e.g., $10,000 for $400k flat).[1][6] No separate application needed—HDB checks at booking.
- Apply HDB Grants First: Deduct EHG PHG grant (up to $80,000 EHG for BTO; $190,000 resale) from purchase price before CPF use to maximize HDB grants.[2] See our pillar guide for details.
- At AFL Signing: Transfer CPF OA funds via HDB portal. Pay 2.5%-5% using CPF (e.g., instruct CPF Board to pay from OA).[1][7]
- Secure Loan In-Principle Approval (IPA): For bank loans, get IPA from partners like DBS, OCBC, UOB via Homejourney's multi-bank application—one Singpass submission reaches all.
- At Key Collection: Pay remaining 20%-22.5% from CPF OA. Grants and loan disbursed simultaneously.[1]
Pro Tip: Time your BTO ballot for maximum CPF accumulation—young couples gain 3+ years of contributions before keys.[1]
Documentation Checklist for CPF Downpayment
- Singpass-linked CPF statement (auto-pulls via HDB portal)
- HDB Letter of Offer
- Grant letters (EHG, PHG, Family Grant)
- IPA from bank or HDB loan eligibility letter
- Proof of cash top-up if OA short (bank statements)
Prepare via HDB Loan Documents Checklist. Homejourney verifies docs digitally for error-free submissions.
Maximizing CPF with HDB Grants and Grant Loan Combination
Combine CPF housing grant like Enhanced CPF Housing Grant (EHG) up to $80,000 with PHG up to $110,000 for resale to reduce effective downpayment.[2] Example: $400k resale flat with $120k grants = $280k net price; 25% down = $70k from CPF OA.
Insider Tip: For Punggol BTOs averaging $450k, young families save $10k+ upfront via 2.5% staggered + EHG. Use Homejourney's projects directory for price data.
HDB Loan vs Bank Loan: CPF Usage Compared
Choose based on rates—HDB at 2.6% fixed vs bank ~2-2.5% variable. Compare via Homejourney bank rates from DBS, OCBC, UOB, HSBC, Standard Chartered.
| Aspect | HDB Loan | Bank Loan |
|---|---|---|
| CPF for Downpayment | 100% allowed | 20% max (5% cash min) |
| Staggered Option | Yes (2.5% initial) | Limited |
Link: HDB Loan vs Bank Loan 2025 Guide.
Pro Tips to Maximize Your CPF for HDB Down Payment
- Top up OA voluntarily before booking—gains interest and reduces future withdrawals.
- Avoid over-borrowing: Use Homejourney calculator to stay under 30% debt ratio.
- For resale in mature estates like Toa Payoh, factor PHG to cut CPF need by 30%+.[2]
- Track SORA rates live on Homejourney for bank loan timing.
- Common Pitfall: Forgetting 1.1%+ OA interest on withdrawn amounts—plan refunds if resale.
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What to Expect After Using CPF for Downpayment
Processing: 1-2 weeks for CPF transfer post-AFL. Keys collection: HDB coordinates loan, grants, CPF in one go. Post-purchase: Monthly CPF deductions auto-start. Track via Homejourney for refinancing later.
Disclaimer: This is general guidance based on 2025 HDB/CPF rules. Consult HDB or financial advisor for personalized advice. Rates fluctuate; verify latest at official sources.
Frequently Asked Questions (FAQ)
Can I use full CPF OA for HDB downpayment?
Yes, 100% for HDB loans; up to 20% for bank loans after 5% cash.[1][2]
