How to Use CPF for HDB Down Payment | Homejourney Guide
You can use your CPF Ordinary Account (OA) savings, along with cash and applicable grants, to pay the 25% HDB down payment for both BTO and resale flats, whether taking an HDB loan or bank loan. Homejourney simplifies this process with tools to calculate your eligibility and apply securely via Singpass.
This cluster article focuses on using CPF for HDB down payments, linking back to our pillar guide on HDB loan vs bank loan comparisons. As Singapore's trusted property platform prioritizing user safety and transparency, Homejourney verifies all data to help you make confident decisions. Discover actionable steps, common pitfalls, and pro tips below.
Understanding HDB Down Payment Requirements
The HDB down payment is 25% of the purchase price for both BTO and resale flats in 2026[1][2]. For HDB concessionary loan, you can pay the full 25% using CPF OA savings or cash—no mandatory cash minimum[1][2]. Bank mortgages for HDB require at least 5% cash, with the remaining 20% in cash or CPF OA[1][2].
Grants like the Enhanced CPF Housing Grant (EHG) up to $120,000 for families reduce your payable amount by crediting your CPF account[1][8]. Use Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator to estimate your net down payment instantly.
HDB Loan vs Bank Loan: Which is Better for Down Payment?
HDB loan interest rate is fixed at 2.6% p.a. (CPF OA rate + 0.1%), offering stability[3]. Bank loans range from 2.00%-2.50% p.a. but fluctuate with market rates[3]. For down payments using CPF, HDB loan is flexible with 100% CPF/cash, ideal for first-timers[2].
Bank loans demand 5% cash minimum, suiting those with stronger savings[2]. Compare options via HDB Loan vs Bank Loan 2026 Comparison | Homejourney and Homejourney's bank rates page: https://www.homejourney.sg/bank-rates. Which loan better HDB? HDB for predictability; bank for potentially lower initial rates.
Step-by-Step: How to Use CPF for HDB Down Payment
Follow these numbered steps for a smooth process:
- Obtain HFE Letter: Apply via HDB portal with Singpass to confirm eligibility[1].
- Calculate Down Payment: Use HDB resale calculator (needs HFE) or Homejourney tools. For a $500,000 flat, 25% = $125,000; subtract grants (e.g., $80,000 EHG) = $45,000 payable[1].
- Confirm Financing: For HDB loan, use My Flat Dashboard; for bank, secure Letter of Offer[1][3].
- Pay First Instalment: At Agreement for Lease signing—5% under Staggered Scheme (BTO only) via CPF deduction[1][4].
- Pay Balance: At key collection—remaining 20% from CPF OA[1][3]. Resale: Full via HDB portal post-approval[3].
- Monitor CPF: Ensure OA balance covers amount + accrued interest[6].
Pro tip: Young couples (one under 30) qualify for 2.5% first payment under Deferred Income + Staggered Scheme[1]. Avoid pitfalls like insufficient CPF by saving 4 months ahead—insider knowledge from Homejourney users.
Staggered Downpayment Scheme Details
For BTO flats (post-2018), pay in two parts if eligible[3][4].
| Scheme | 1st Payment (Signing) | 2nd Payment (Keys) |
|---|---|---|
| HDB Loan | 5% CPF/cash | 20% CPF/cash |
| Bank Loan | 10% (5% cash + 5% CPF/cash) | 15% CPF/cash |
Resale flats pay full 25% upfront via CPF post-approval[3].
Documentation Checklist for CPF Usage
- HDB Flat Eligibility (HFE) Letter—from HDB portal[1].
- CPF statement—download via CPF portal or Singpass[6].
- Income documents for grants (e.g., payslips for EHG)[1].
- Bank Letter of Offer (bank loan only)[3].
- Singpass for My Flat Dashboard[1].
Prepare digitally: Homejourney's multi-bank application auto-fills via Singpass, sending to DBS, OCBC, UOB, HSBC, and moreHDB Loan vs Bank Loan: Which is Better for 2026? | Homejourney .
Pro Tips to Maximize CPF for Down Payment
- Stack Grants: EHG + Proximity Housing Grant up to $190,000 for resale[3].
- Time Payments: Top up CPF OA early; interest accrues from payment date[6].
- Bank Loan Flexibility: Opt out of CPF usage to preserve savings[2].
- Homejourney Hack: Use our platform to compare bank mortgage HDB rates and track SORA—skip branch visits.
- Avoid Delays: Confirm OA balance 2 weeks pre-signing; resale CPF deduction is automated[3].
The chart below shows recent interest rate trends in Singapore:
As seen, SORA stability favors fixed HDB rates for long-term planning[3].
What to Expect After Paying Down Payment
Processing: 1-4 weeks for CPF deduction[1]. Next: Loan disbursal at completion. Track via Homejourney: One app to DBS, OCBC, UOB, etc., with side-by-side offers. Post-purchase, explore Aircon Services for maintenance.
Disclaimer: This is general guidance; consult HDB/CPF/banks for personalized advice. Rates as of 2026 may vary.
Frequently Asked Questions (FAQ)
Can I use 100% CPF for HDB down payment?
Yes, for HDB loans; bank loans require 5% cash minimum[1][2].
How much CPF do I need for a $600,000 resale flat?
25% = $150,000 minus grants (e.g., $120,000 EHG) = ~$30,000 from CPF/cash[1]. Use Homejourney calculator.
What's the difference in down payment for HDB loan vs bank loan?
HDB: Full CPF ok; Bank: 5% cash + 20% CPF/cash[2]. See HDB Loan vs Bank Loan 2026 Comparison | Homejourney .
Is Staggered Downpayment available for resale?
No, only BTO[3][4].
How does Homejourney help with CPF down payments?
Calculate, compare rates, apply multi-bank via Singpass at https://www.homejourney.sg/bank-rates.
Ready to buy safely? Start with Homejourney's property search at https://www.homejourney.sg/search and our pillar on HDB loan vs bank loan. Prioritizing your trust, one secure step at a time.
