How to Use CPF for HDB Down Payment | Homejourney Guide

Yes, you can use your CPF Ordinary Account (OA) savings to pay the HDB down payment fully or partially, up to the property's valuation limit, provided the lease meets CPF Board requirements. This is a key strategy for first-time buyers to minimize cash outlay when purchasing new or resale HDB flats. Homejourney simplifies this process with our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator, ensuring you make safe, informed decisions in Singapore's property market.[1][3]

Understanding CPF Usage for HDB Down Payments

CPF OA savings cover the down payment, monthly instalments, stamp duties, and legal fees for HDB flats. For HDB loans, the down payment is 25% of the purchase price or valuation (whichever lower), with CPF funding up to the valuation limit. Bank loans require 25% down payment too, but LTV is 75%.[1]

The remaining lease must cover the youngest buyer to age 95 for full CPF use; otherwise, it's prorated. Minimum lease is 20 years for any CPF usage. Homejourney verifies these details to build trust and prevent costly errors.[3]

HDB Loan vs Bank Loan: Which is Better for Your Down Payment?

HDB concessionary loan offers 75% LTV (down payment 25%), interest at 2.6% (0.1% above CPF OA rate), ideal for lower income buyers with no income ceiling for resale but grants capped.[1] Bank mortgage HDB also 75% LTV, but rates tied to SORA (around 3-4% in 2026) offer flexibility like fixed rates.

HDB loan interest rate is stable at 2.6%, better for risk-averse buyers. Banks like DBS, OCBC, UOB may suit higher earners. Compare via Homejourney's multi-bank tool at https://www.homejourney.sg/bank-rates – one Singpass application sends to DBS, OCBC, UOB, HSBC, and more.[1]

Read our detailed comparison: HDB Loan vs Bank Loan 2026 Comparison | Homejourney .

Step-by-Step: How to Use CPF for HDB Down Payment

Follow these actionable steps for a smooth process:

Check Eligibility: Confirm HDB flat eligibility via HDB Resale Portal or BTO application. Use Homejourney's calculator to assess CPF balance and borrowing power.
Get HFE Letter: Apply for HDB Financial Eligibility via Singpass. It shows max loan and CPF usage.
Exercise Option to Purchase (OTP): Pay $1,000-$5,000 option fee (cash or CPF via seller's lawyer).
Submit Resale Application: Via HDB portal; declare CPF intent. For new BTO, at Agreement for Lease stage.
Financial Plan Confirmation: HDB approves CPF withdrawal for down payment (5-25% staggered for young couples).
Pay Down Payment: Transfer CPF OA to seller at key collection or staged (e.g., Staggered Downpayment Scheme: 2.5%-5% initial).[2][5]
Top-Up CPF: Within 3 months if needed to meet Basic Healthcare Sum.

Avoid pitfalls like insufficient CPF by checking balances early on Homejourney.[3]

Staggered Downpayment Scheme for Young Couples

First-timers under 30 pay 5% (HDB loan) or 10% (bank) initially, rest at key collection. With deferred income assessment, drops to 2.5%. Saves cash for CPF-focused buyers.[2][4]

Documentation Checklist for CPF Down Payment

Singpass login for HFE letter and portals.
CPF statement (download from CPF site).
Income documents (last 3 payslips, IR8A).
OTP and sale agreement.
Proof of relationship for grants (marriage cert).
Valuation report from HDB appointment.

Prepare via Homejourney's guided checklists. Link to full list: HDB Loan Documents Checklist 2026 | Homejourney Guide .

Pro Tips to Maximize CPF for Down Payment

Retain $20,000 OA: HDB loans allow this to earn interest.[1]
Grants Boost: Enhanced CPF Grant up to $120,000 reduces cash needs.[2]
Timing: Apply post-OTP; CPF resets annually March 1.
Bank Loans? Use Homejourney: Compare HDB loan vs bank loan rates; apply once for multiple offers.
Lease Check: Insider tip: Use HDB's lease calculator for 95-year rule early.

Homejourney prioritizes your safety with verified data, unlike untrusted sources.

What to Expect: Timelines and Next Steps

OTP to down payment: 8-12 weeks for resale. CPF approval: 1-2 weeks post-financial plan. Banks process faster via Homejourney's Singpass auto-fill. Post-approval, track offers side-by-side and search HDBs at https://www.homejourney.sg/search.

Disclaimer: This is general advice; consult HDB/CPF or Homejourney brokers for personalized guidance. Rates as of 2026 may vary.

FAQ: How to Use CPF for HDB Down Payment

Can I use CPF for the full HDB down payment?
Yes, up to valuation limit if lease covers buyer to 95 years old. Cash covers any shortfall.[3]

HDB loan vs bank loan: Which allows more CPF use?
Both up to 75% LTV, but HDB at 2.6% fixed rate suits CPF monthly payments better. Compare on Homejourney.[1]

What's the minimum CPF balance needed?
No fixed minimum, but must leave Ordinary/Enhanced Retirement Sums post-withdrawal. Check via CPF portal.[3]

Can singles use CPF for resale HDB down payment?
Yes, no income ceiling for resale; grants up to $40k if eligible.[1]

How does Homejourney make this safer?
Our platform verifies eligibility, multi-bank apps via Singpass, and real-time tracking for transparent, trusted transactions.

Next Steps with Homejourney

Start safely: Calculate at Homejourney calculator, compare which loan better HDB at bank-rates, find your HDB at property search. This cluster links to our pillar: HDB Loan vs Bank Loan: Which is Better for 2026? | Homejourney . Trust Homejourney for your how to use CPF for HDB down payment journey.