How to Use CPF for HDB Down Payment: Homejourney Guide
You can use your CPF Ordinary Account (OA) savings to pay up to the full 25% HDB down payment for BTO or resale flats, combined with cash if needed. This applies whether you're taking an HDB concessionary loan or a bank loan, making homeownership more accessible for first-time buyers in Singapore.[1][2][6]
Homejourney prioritizes your safety and trust by verifying all financing details, so you can confidently plan your HDB purchase. This cluster article focuses on using CPF for down payments, linking back to our pillar guide on HDB loan eligibility and requirements for comprehensive coverage.HDB Loan Eligibility 2026: Who Qualifies & How Much | Homejourney
Understanding HDB Down Payment Rules in 2026
The total down payment for HDB flats is 25% of the purchase price, as the Loan-to-Value (LTV) limit is 75%.[2][3] For a $500,000 BTO flat, this means a $125,000 down payment. Your CPF OA can cover the entire amount for HDB loans, with no mandatory cash component.[1][2]
Bank loans require at least 5% in cash ($25,000 for the example), with the remaining 20% ($100,000) from CPF OA or cash.[2][3] CPF grants like the Enhanced CPF Housing Grant (EHG) up to $120,000 can further offset this.[8]
At Homejourney, calculate your exact down payment needs using our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator to ensure you stay within safe borrowing limits.
Staggered Downpayment Scheme: Spread Your CPF Usage
HDB's Staggered Downpayment Scheme lets eligible buyers split payments: 5% at Agreement for Lease (AFL) signing and 20% at key collection (2-4 years later).[1][2][3] For first-timers or young couples (under 30), it can be as low as 2.5% initially.[1][4]
Under HDB loan, both instalments can be fully from CPF OA. Example: For a $500,000 flat, pay $12,500 (2.5%) upfront via CPF, then $112,500 later.[1] This gives time for CPF accrual via contributions. Eligibility: First-timers, valid HFE letter before age 30, 5-room or smaller flats.[2][3]
No separate application needed—it's automatic at booking. Check details on HDB's site and use Homejourney's tools for personalized timelines.
Step-by-Step: How to Use CPF for HDB Down Payment
Follow these actionable steps to deploy your CPF safely:
- Check CPF OA Balance: Log into CPF portal or Singpass app. Ensure sufficient OA savings (e.g., $125,000 for $500,000 flat). Remember, OA earns 2.5% interest, but housing withdrawals are prioritized.[6]
- Get HFE Letter: Apply via HDB Flat Portal for HDB loan eligibility. Confirm who can get HDB loan based on income ceiling ($14,000/month for families) and citizenship.HDB Loan Eligibility 2026: Who Qualifies & How Much | Homejourney
- Book Flat & Sign AFL: At selection centre (e.g., HDB Hub, Basilar Road), pay first instalment via GIRO from CPF OA. Authorize withdrawal online post-booking.[6]
- Top Up if Short: Voluntary contributions to OA boost balance, but assess via Homejourney's calculator first.
- Key Collection: Second payment auto-debited from CPF OA. Excess CPF refunds to your account post-transaction.
Avoid pitfalls: Don't withdraw CPF early—it's locked for housing. For resale, full 25% due at completion, no staggering.[2]
Documentation Checklist for CPF Down Payment
- Singpass for CPF e-services access.
- HFE letter confirming HDB concessionary loan criteria (e.g., no recent property ownership).Documents Required for HDB Loan Application | Homejourney 2026
- CPF withdrawal authorisation form (auto-generated in HDB portal).
- Proof of grants (EHG letter) to offset down payment.
- Bank statements if mixing cash (mandatory for bank loans).
Prepare via Singpass for instant auto-fill. Homejourney's multi-bank application at https://www.homejourney.sg/bank-rates simplifies this—submit once to DBS, OCBC, UOB, HSBC, and more.
HDB vs Bank Loan: CPF Usage Differences
HDB Loan Requirements: Full 25% CPF/cash, fixed 2.6% interest (as of 2026), ideal for cash-strapped buyers.[2]HDB Loan vs Bank Loan 2026: Which Saves You More Money?
Compare HDB loan eligibility first. Bank loans tie to SORA (~3.0% in 2026), but require cash upfront.
Pro Tips from Homejourney Experts
- Maximize Grants: Pair CPF with EHG to reduce effective down payment to 5-10%.[8]
- Timing Hack: Book BTO early in month for CPF interest accrual before AFL.
- Avoid Shortfall: Use Homejourney's eligibility tool—input income, CPF balance for instant projection.
- Refinance Later: Post-key collection, compare rates via https://www.homejourney.sg/bank-rates for savings.HDB Loan Interest Rate Trends 2026: Homejourney Analysis
- Safety First: Verify all via official HDB portal; Homejourney double-checks for you.
Insider tip: For Punggol BTOs (~$450k average), young couples save $10k+ via 2.5% stagger.[1]
What Happens After CPF Down Payment?
Post-payment, monthly instalments start from CPF OA first, then cash. Track via CPF app. If overpaying, refunds issued within weeks.[6] Processing: 1-2 weeks per instalment.
Next: Select renovations or aircon services via Aircon Services . Search budgeted flats on https://www.homejourney.sg/search.
FAQ: How to Use CPF for HDB Down Payment
Can I use all my CPF for HDB down payment?
Yes, up to 25% for HDB loans; 20% for bank loans after 5% cash.[1][2]
Who qualifies for staggered downpayment with CPF?
First-timers under 30 with HFE, for 5-room+ BTO.[2][3]
What if my CPF OA is insufficient?
Top up voluntarily or use cash/grants. Calculate on Homejourney first.
Does CPF earn interest during stagger period?
Yes, 2.5% p.a. on unused balance.[6]
Is HDB loan better for CPF down payment?
Often yes, no cash needed. Compare via HDB Loan vs Bank Loan 2026: Which Financing Option Saves You More? .
Ready to use CPF for your HDB down payment? Start safely with Homejourney's trusted tools at https://www.homejourney.sg/bank-rates. One Singpass application reaches all major banks for the best offers. For full HDB loan requirements, see our pillar guide.
Disclaimer: This is general advice; consult HDB or a financial advisor for your situation. Rates as of Feb 2026.
