How to Use CPF for HDB Down Payment | Homejourney Guide
You can use your CPF Ordinary Account (OA) savings to pay up to 100% of the HDB down payment for both BTO and resale flats, subject to your available balance and HDB rules.[1][3][7]
This cluster article dives deep into how to use CPF for HDB down payment, a key step in your home buying journey. It connects to our pillar guide on CPF for HDB Purchase: Complete Usage Guide 2025 CPF for HDB Purchase: Complete Usage Guide 2025 | Homejourney , providing tactical advice for first-time buyers and upgraders. At Homejourney, we prioritize your safety and trust by verifying all info from official HDB and CPF sources, helping you make confident decisions.
Understanding CPF HDB Down Payment Rules in 2025
The total down payment for HDB flats is 25% of the purchase price under the 75% Loan-to-Value (LTV) limit for both HDB and bank loans.[1][2]
For HDB loans, the full 25% can be paid using CPF OA savings, cash, or a mix—no mandatory cash component.[1][3] For bank loans, at least 5% must be cash, with the remaining 20% from CPF OA or cash.[2]
CPF OA for flat usage is straightforward: HDB requires you to use available OA savings before granting any loan balance.[3] This applies to BTO (new flats) and resale flats. Grants like Enhanced CPF Housing Grant (EHG) up to $80,000 can offset the down payment after CPF usage.[6]
Homejourney tip: Check your CPF balance via the CPF portal or our eligibility calculator at Homejourney mortgage calculator to confirm how much you can use for your HDB down payment.
HDB Staggered Downpayment Scheme and CPF Usage
Eligible first-time buyers, young couples (under 30), and right-sizers qualify for the Staggered Downpayment Scheme, splitting payments into two parts.[1][4][5]
- First instalment: As low as 2.5%-5% at Agreement for Lease (AFL) signing, payable via CPF OA or cash.[1]
- Second instalment: Remaining balance (up to 22.5%) at key collection, 2-4 years later, also using CPF OA.[1][2]
This eases cash flow, letting CPF contributions grow in your OA over time. No separate application needed—eligibility is checked at booking.[1]
Real example: For a $500,000 BTO 4-room flat in Tengah, a young couple pays 2.5% ($12,500) at AFL using CPF OA, then $112,500 later. Insider tip: Book early in the launch (e.g., via HDB ballot at Community Clubs like Jurong West) to maximize CPF accumulation.
Step-by-Step: How to Use CPF for HDB Down Payment
Follow these actionable steps for a smooth CPF down payment HDB process:
- Check Eligibility and CPF Balance: Log into CPF portal or Singpass app. Ensure OA savings cover your share. Use Homejourney's calculator: https://www.homejourney.sg/bank-rates#calculator.
- Book Your Flat: Via HDB Flat Portal for BTO or resale. Get In-Principle Approval (IPA) for HDB/bank loan.
- Sign AFL: At HDB Hub (480 Lorong 6 Toa Payoh). Submit Option to Purchase with initial down payment (2.5%-5%) via CPF OA authorisation form.
- Authorise CPF Usage: Fill HDB's CPF Refund/Withdrawal form online. Funds transfer automatically to HDB upon payment due date.
- Key Collection: Pay remaining down payment via CPF OA at HDB Branch (e.g., Toa Payoh HQ, 5-min walk from Braddell MRT Exit A).
- Post-Payment: Track via HDB portal; expect 1-2 weeks for CPF deduction confirmation.
Timeline: 6 months from booking to AFL; 2-4 years to keys. Pitfall to avoid: Don't withdraw CPF early—HDB mandates using available OA first.[3]
Documentation Checklist for CPF HDB Purchase
Prepare these for seamless use CPF for HDB:
- Singpass account (for auto-fill).
- CPF Statement (last 12 months).
- HDB Letter of Offer/Option Fee Receipt.
- IPA Letter from HDB or bank (e.g., DBS, OCBC).
- CPF Authorisation Letter (generated via CPF portal).
- ID/Passport copies.
Pro tip: Use Singpass on Homejourney for instant auto-fill of income and CPF data. Submit one multi-bank application to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more—skip bank queues. Start at https://www.homejourney.sg/bank-rates.
Key Limits and Rules for CPF OA in HDB Down Payments
Your CPF OA balance caps usage—e.g., if OA has $50,000, that's your max for down payment.[7]
| Flat Type | Downpayment % | CPF OA Usage | Cash Min (Bank Loan) |
|---|---|---|---|
| BTO (HDB Loan) | 25% | 100% | N/A |
| Resale (HDB Loan) | 25% | 100% | N/A |
| Bank Loan | 25% | Up to 20% | 5% |
Data from HDB 2025 guidelines.[1][2][3] Always verify with HDB for your case. Disclaimer: This is general info; consult HDB or a advisor for personalised advice. Homejourney verifies all data for your trust.
Pro Tips to Maximise CPF for Your HDB Flat
Insider advice from Singapore homebuyers:
- Top up OA voluntarily before AFL to boost balance (e.g., $10,000 top-up grows with 2.5% interest).
- For resale, use HDB Resale Flat Financing Complete Guide 2025 | Homejourney for full financing details.
- Compare HDB vs bank via HDB Loan vs Bank Loan 2025 Comparison | Homejourney .
- Search budget-friendly flats on Homejourney property search.
- Track applications on Homejourney—real-time status from partner banks like UOB and CIMB.
Common mistake: Forgetting family grants reduce effective down payment. E.g., PHG up to $110,000 for resale.[6]
What Happens After CPF Down Payment
Post-payment, HDB disburses loan; you move in. Expect CPF refunds if grants apply (credited to OA). Processing: 7-14 days.
Next: Secure full mortgage. Homejourney simplifies—compare rates from DBS to RHB, apply via Singpass. Track SORA-linked rates for bank loans.
The chart below shows recent interest rate trends in Singapore:
Rates hover at 2-2.5% p.a. for banks vs HDB's 2.6% fixed. See HDB Loan Interest Rate Trends 2025: Homejourney Analysis for more.
FAQ: How to Use CPF for HDB Down Payment
Q: Can I use CPF for the full HDB down payment?
A: Yes, 100% via OA for HDB loans on BTO/resale.[3][7]
Q: What's the minimum cash for bank loan HDB down payment?
A: 5% of purchase price; rest CPF/cash.[2]
Q: Do grants affect CPF usage?
References
- Singapore Property Market Analysis 1 (2025)
- Singapore Property Market Analysis 3 (2025)
- Singapore Property Market Analysis 7 (2025)
- Singapore Property Market Analysis 2 (2025)
- Singapore Property Market Analysis 6 (2025)
- Singapore Property Market Analysis 4 (2025)
- Singapore Property Market Analysis 5 (2025)
