How to Use CPF for HDB Down Payment: Homejourney 2026 Guide
You can use your CPF Ordinary Account (OA) savings to pay most or all of your HDB down payment, depending on whether you choose an HDB loan or bank loan. With an HDB loan, cover the full 20-25% down payment using CPF (subject to S$20,000 retention), while bank loans require a minimum 5% cash component.[1][2]
This cluster article dives into the specifics of using CPF for HDB down payments, building on our pillar guide to HDB financing in Singapore. At Homejourney, we prioritize your safety and trust by verifying all information from official HDB and CPF sources, helping you make confident decisions.
CPF Down Payment Rules: HDB Loan vs Bank Loan
The amount of CPF you can use for your HDB down payment hinges on your loan type, flat type (BTO or resale), and Loan-to-Value (LTV) limit of 75%.[1][2] HDB loans offer more flexibility with CPF, ideal for first-time buyers minimizing cash outlay.
For a S$400,000 BTO flat:
- HDB loan: 25% down payment (S$100,000) fully from CPF-OA (no cash required).[2]
- Bank loan: 25% down (S$100,000): 5% cash (S$20,000) + 20% CPF (S$80,000).[1][2]
Resale flats follow similar rules but require full payment upfront—no staggered option. Always retain at least S$20,000 in your CPF OA if using an HDB loan.[1] Use Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator to check your CPF balance against down payment needs.
Step-by-Step: How to Use CPF for HDB Down Payment
Follow these actionable steps to authorize CPF payments securely through official channels. Homejourney simplifies this by integrating Singpass for instant CPF data pulls.
- Check CPF OA Balance: Log into CPF Board portal or app. Ensure sufficient funds above S$20,000 retention.[1][4]
- Confirm Eligibility: Verify HDB flat eligibility via HDB website. First-timers get priority for BTO.[1]
- Choose Loan Type: HDB concessionary loan (2.6% interest as of 2026) allows full CPF down payment; bank mortgage HDB requires cash. Compare via HDB Loan vs Bank Loan: Which is Better for 2026? | Homejourney .[1]
- Submit HDB Financial Plan: For resale, use HDB Resale Portal; for BTO, during Agreement for Lease signing.[1]
- Authorize CPF Payment: HDB/CPF systems deduct OA funds directly to seller or HDB. No manual transfer needed.[1][4]
- Pay Cash Component (if any): For bank loans, prepare Cashier's Order.[2]
Pro tip: Apply for HDB Flat Eligibility (HFE) letter before your 30th birthday for staggered payments if eligible.[2] Track everything on Homejourney for a trusted process.
BTO vs Resale: CPF Usage Differences
BTO flats allow staggered downpayments for eligible couples: 5% at Agreement for Lease, rest at key collection (3-4 years later).[1][2] Young couples pay just 2.5% upfront since June 2024.[2]
| Scenario (S$400k Flat) | HDB Loan | Bank Loan |
|---|---|---|
| Downpayment | 25% CPF (S$100k) | 5% cash (S$20k) + 20% CPF (S$80k) |
| Staggered (BTO) | 5% then 20% | 10% then 15% |
Resale demands full 25% at completion. Which loan better HDB? HDB loan interest rate is stable at 2.6% (pegged 0.1% above CPF OA), vs fluctuating bank rates.[1] See HDB Loan vs Bank Loan 2026 Comparison | Homejourney for details.
HDB Loan Interest Rate vs Bank Mortgage HDB
HDB concessionary loan offers 2.6% fixed rate (as of 2026), lower than most bank mortgage HDB options starting at 3.5% SORA-pegged.[1] Banks like DBS, OCBC, UOB provide flexibility but higher initial costs.
The chart below shows recent interest rate trends in Singapore:
Rates have stabilized post-2024 hikes, favoring fixed HDB options for budget predictability. Compare live rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank and more at https://www.homejourney.sg/bank-rates.
Documentation Checklist for CPF Authorization
- Singpass for CPF/HDB portals.[4]
- HFE letter or resale intent.[1]
- Proof of income for TDSR (60% debt cap).[3]
- CPF statement showing OA balance.[4]
- Cashier's Order for bank loan cash portion.[2]
Insider tip: Use Homejourney's multi-bank application—submit once via Singpass, get offers from all partners instantly. Skip bank queues for faster HDB purchases.
Common Pitfalls and Pro Tips
Avoid insufficient CPF by building OA savings early—interest accrues at 2.5%.[4] Don't forget stamp duty (cash first, CPF reimbursable).[2] For upgraders, check CPF grant eligibility.
- Time staggered payments to grow CPF interest.
- Compare HDB loan vs bank loan early using Homejourney tools.
- Track applications on our platform for real-time updates.
Disclaimer: This is general advice; consult HDB/CPF for personalized guidance. Homejourney verifies data for your trust.
FAQ: How to Use CPF for HDB Down Payment
Can I use 100% CPF for HDB down payment?
Yes, with HDB loan (minus S$20k retention); bank loans need 5% cash.[1][2]
What's the HDB loan interest rate in 2026?
2.6% (0.1% above CPF OA rate), more stable than bank mortgage HDB.[1]
HDB loan vs bank loan: Which is better for down payment?
HDB for zero cash; bank for potentially lower long-term rates. Compare on Homejourney.[1][2]
When is CPF deducted for resale HDB?
At resale completion via HDB Portal.[1]
How much CPF for S$500k resale with bank loan?
Up to 20% (S$100k) if 75% LTV; more if lower LTV.[1]
Ready to use CPF for your HDB down payment? Start with Homejourney's bank rates comparison at https://www.homejourney.sg/bank-rates, then search properties at https://www.homejourney.sg/search. For full HDB financing, read our pillar guide. Trust Homejourney for safe, verified property journeys.
