How to Use CPF for HDB Down Payment: Homejourney Guide
Yes, you can use your CPF Ordinary Account (OA) savings to pay most of your HDB down payment, covering up to 20-25% depending on HDB or bank loan, after a minimum 5% cash for bank loans.[1][2]
Homejourney prioritizes your safety and trust in property decisions. This cluster article focuses on how to use CPF for HDB down payment, a key step in CPF HDB purchase. It links to our pillar CPF for HDB Purchase: Homejourney's Complete Usage Guide CPF for HDB Purchase: Homejourney's Complete Usage Guide for full coverage.
HDB Down Payment Rules: CPF OA for Flat Purchases
The total down payment is 25% of the purchase price due to the 75% Loan-to-Value (LTV) limit for both HDB and bank loans as of 2024.[1][2] For a $400,000 BTO flat:
- HDB loan: 25% ($100,000) fully from CPF OA or cash. No cash minimum.
- Bank loan: 5% ($20,000) cash + 20% ($80,000) from CPF OA.
[1][2] Stamp duty (e.g., $6,600 for $400k flat) is paid in cash but reimbursable from CPF.[1]
CPF HDB rules require using Ordinary Account (OA) savings first. You cannot use Special Account (SA) or Retirement Account (RA) for down payments.[5] Ensure your CPF OA balance covers the amount after grants.
Step-by-Step: How to Use CPF for HDB Down Payment
Follow these actionable steps for a smooth CPF down payment HDB process. Homejourney verifies all info for your confident decisions.
- Check CPF OA Balance: Log into CPF portal or myHDBPage. Minimum balance after payment: $20,000 + housing withdrawals since Feb 2000.[5]
- Apply for HFE Letter: Get your HDB Flat Eligibility (HFE) letter via HDB portal to confirm loan amount and down payment.
- Book Flat (BTO/Resale): At ballot or resale signing, notify HDB/seller of CPF usage.
- Sign Agreement for Lease/Sale: Pay first instalment (5-10%) via CPF authorisation on HDB InfoWEB.
- Key Collection: Pay remaining (15-20%) from CPF OA. Funds transfer automatically.
- Track on Homejourney: Use our property search to find flats within your CPF limits.
Avoid pitfalls: Book appointment early at HDB branches (e.g., Toa Payoh Hub, 10-min walk from Braddell MRT Exit A). Processing takes 7-14 days.[1]
Staggered Downpayment Scheme: Using CPF OA Smartly
Eligible first-timers (under 30-35, 5-room or smaller BTO) pay in stages:[1][2][3]
June 2024 update: Young couples (students/NSFs) pay just 2.5% upfront.[2] Use CPF OA for both stages. Example: $400k flat – $20k (5%) at signing, $80k (20%) at keys.[1]
Pro tip: Pair with Enhanced CPF Housing Grant (up to $120k for families).[2][8] Reduces effective down payment.
Bank Loan vs HDB Loan: Maximise CPF Usage
Cash-strapped buyers prefer HDB loans – 100% CPF down payment, no cash needed.[1][2] Bank loans require 5% cash but offer potentially lower rates.
Compare on Homejourney's bank rates page: DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank. Skip bank queues – one Singpass application sends to all.HDB Loan vs Bank Loan 2026 Comparison | Homejourney
Calculate eligibility first: mortgage calculator. Auto-fills CPF data via Singpass for instant results.
Documentation Checklist for CPF HDB Down Payment
- HFE letter (from HDB portal)
- Singpass for CPF authorisation
- CPF statement (last 12 months)
- Proof of grants (EHG, etc.)
- ID copies for both applicants
Prepare via CPF app. Insider tip: Visit CPF Board at Tampines Junction (5-min walk from Tampines MRT) for same-day queries – locals know it's faster than online queues.
Pro Tips to Maximise CPF for HDB Purchases
- Top-Up CPF OA: Voluntary contributions boost balance before withdrawal.
- Grants First: Deduct EHG ($120k max) from price before calculating 25%.[2]
- Resale Specifics: Full 25% upfront, no staggered scheme. For $450k resale: HDB loan $112.5k CPF.[1]
- Avoid Overdraw: Leave buffer for accrued interest (2.1% p.a. on used CPF).[5]
- Homejourney Hack: Track CPF limits with our tools while searching projects directory.
Disclaimer: Rules per HDB/CPF as of 2026. Consult HDB for personalised advice. Homejourney verifies data for trust.
Common Mistakes & How Homejourney Helps
Mistake 1: Forgetting minimum CPF balance – leads to rejection.[5] Solution: Use our calculator.
Mistake 2: Bank loan cash shortfall. HDB loans are CPF-friendly for first-timers.
Post-purchase: Maintain your flat with aircon services via Homejourney for long-term value.
FAQ: How to Use CPF for HDB Down Payment
Can I use 100% CPF for HDB down payment?
Yes, with HDB loan – no cash required. Bank loans need 5% cash.[1][2]
What's the CPF OA limit for HDB flats?
Up to 25% of price minus grants, subject to personal balance and $20k+ minimum.[5]
Eligible for staggered scheme?
First-timers under 30-35, BTO 5-room/smaller. 5% upfront via CPF.[1][3]
Resale HDB: CPF down payment rules?
25% full at signing, CPF OA ok for HDB loan.[1]
How does Homejourney simplify this?
Compare loans, calculate CPF usage, apply multi-bank via Singpass at bank-rates.
Ready for your HDB purchase? Start with Homejourney's bank rates for CPF-optimised financing. Explore our pillar CPF for HDB Purchase: Homejourney's Complete Usage Guide CPF for HDB Purchase: Homejourney's Complete Usage Guide for more. Trust Homejourney for safe, verified property journeys.
