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 scheme rules.[1][2][7]
Homejourney prioritizes your safety and trust by verifying all financing info, helping you make confident decisions on HDB resale financing and resale flat payments. This cluster guide focuses on using CPF effectively, linking back to our pillar HDB Resale Flat Financing Complete Guide 2025 for full coverage. [Link]
Understanding HDB Down Payment Requirements in 2025
In 2025, the Loan-to-Value (LTV) limit is 75% for both HDB loans and bank loans, requiring a 25% down payment on HDB flats.[1][3]
For HDB resale mortgage or BTO flats, this down payment can be fully covered by CPF OA savings, cash, or a mix. Bank loans mandate a minimum 5% cash component, with the rest from CPF or cash.[1][2]
Grants like Enhanced CPF Housing Grant (EHG) up to $80,000 can offset the down payment, added directly to your CPF OA.[6]
Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator lets you input your CPF balance to see exact affordability instantly.
CPF Usage Rules for HDB Down Payment
CPF OA savings are prioritized for housing: you must use available OA funds before loans are disbursed.[2][7]
Key rules:
- Full 25% down payment payable via CPF OA for HDB loans (no cash minimum).[1]
- Bank loans: 5% cash minimum + up to 20% CPF OA for 75% LTV; 10% cash + 35% CPF for 55% LTV.[2][3]
- Resale flats: Option fee (1-4% of price) fully CPF-eligible at resale completion.[2]
- BTO flats: Staggered scheme allows 5% initial (CPF OK) + 20% at key collection.[1][4]
Accrued interest on used CPF must be repaid if you sell or withdraw funds later.
Pro tip: Check your CPF statement via Singpass before applying – Homejourney's multi-bank tool auto-fills this data for seamless buy resale HDB loan applications.
Step-by-Step: How to Use CPF for HDB Down Payment
Follow these actionable steps for smooth resale flat loan processing. Homejourney simplifies this with Singpass integration.
- Check CPF OA Balance: Log into CPF portal or use Homejourney's calculator at https://www.homejourney.sg/bank-rates. Ensure OA covers your share (e.g., for $500,000 resale flat, 25% = $125,000).[2]
- Get HDB Eligibility: Use HDB Resale Portal for flat price, valuation, and grant computation. CPF grants auto-deposit to OA.
- Secure Loan In-Principle Approval (IPA): Apply via Homejourney – one form sends to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more. Track SORA rates live.
- Pay Option Fee: At resale appointment, pay 1-4% via CPF or cash. HDB deducts directly from OA upon confirmation.
- Sign Agreement for Sale (AFS): Pay remaining down payment (e.g., 21-24%) via CPF at lawyer's office or HDB appointment. Submit authorisation letter for CPF transfer.
- Key Collection: Finalise with lawyer; remaining balance from loan/CPF. For BTO staggered: 5% at lease signing, rest later.[1][3]
Timeline: Resale – 8-12 weeks from option to completion; BTO – 2-4 years staggered.[1]
Documentation Checklist for CPF Down Payment
Prepare these for HDB/bank approval:
- Singpass-linked CPF statement (auto-fills on Homejourney).
- HDB IPA or bank Letter of Offer.
- CPF Authorisation Letter (generated via CPF portal).
- Income docs for grants (e.g., payslips, IR8A).
- Cashier's Order for any cash portion (from bank).
Insider tip: For resale in mature estates like Toa Payoh, factor 5-10% above valuation – use Homejourney's projects directory for real-time prices.
HDB vs Bank Loans: CPF Impact on Down Payment
| Loan Type | Down Payment | CPF Usage | Cash Min |
|---|---|---|---|
| HDB Loan | 25% | Up to 100% | $0 |
| Bank Loan (75% LTV) | 25% | Up to 20% | 5% |
Compare via Homejourney at https://www.homejourney.sg/bank-rates – partners like DBS (3M SORA +1.2%), OCBC, UOB offer better rates than HDB's 2.6% peg.HDB Loan vs Bank Loan 2025 Comparison | Homejourney
Pro Tips to Maximize CPF for Down Payment
- Top-Up CPF OA: Voluntary contributions boost balance (tax relief up to $8,000). Ideal for young couples under staggered scheme.[1]
- Time Grants: EHG/PHG up to $190,000 for resale – apply early via HDB.[3][6]
- Avoid Pitfalls: Resale needs full 25% upfront (no stagger); ensure valuation covers price.[2]
- Multi-Bank Hack: Homejourney sends one app to 10+ banks – skip queues, compare DBS/HSBC offers side-by-side.
- Local Insight: For Punggol BTOs, save extra CPF as prices hit $500k+; use https://www.homejourney.sg/search for budget fits.
Disclaimer: Rules per HDB/MAS 2025; consult professionals. Homejourney verifies data for your safety.
What to Expect After Using CPF for Down Payment
Banks assess MSR/TDSR (30-55% of income). Processing: 1-3 weeks for IPA, 4-6 weeks full approval.[2]
Post-approval: Track via Homejourney dashboard. Repay CPF interest monthly from OA.
For maintenance, check aircon services post-move.
Frequently Asked Questions (FAQ)
Can I use CPF for the full HDB resale down payment?
Yes, 100% via OA for HDB loans; bank loans limit to 20% with 5% cash.[1][2]
What's the staggered downpayment for BTO using CPF?
5% at lease signing (CPF OK), 20% at keys – eligible first-timers only.[1][4]
Do grants add to CPF for down payment?
Yes, EHG up to $80k deposits to OA, offsetting down payment.[6]
How much CPF for a $600k resale flat?
25% = $150k; use Homejourney calculator for your scenario.
Bank or HDB loan better for CPF down payment?
Bank often lower rates; compare on Homejourney. HDB Loan vs Bank Loan 2025 Comparison Guide | Homejourney
Ready to use CPF for your HDB down payment? Calculate eligibility and apply multi-bank via Homejourney bank rates
