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 downpayment for BTO or resale flats, combined with cash if needed, under HDB's rules.[1][2][7]

This cluster article dives into using CPF specifically for HDB down payments, a key step in Singapore home buying. It connects to our pillar guide on HDB Loan vs Bank Loan 2026 Comparison | Homejourney ">HDB Loan vs Bank Loan 2026 Comparison for full financing insights. Homejourney prioritizes your safety with verified info to build trust in every decision.

Understanding HDB Downpayment Requirements

HDB requires a 25% downpayment on the purchase price for both BTO and resale flats, as the Loan-to-Value (LTV) limit is 75%.[1][2][3]

For HDB loans, the entire 25% can come from CPF OA savings or cash—no mandatory cash portion. Bank loans demand at least 5% cash, with the remaining 20% from CPF OA or cash.[2][3]

CPF OA is ideal for first-time buyers like young couples in areas such as Punggol or Sengkang, where BTO flats average $400,000–$500,000, meaning $100,000–$125,000 downpayment.[2]

Eligibility to Use CPF for Downpayment

Any Singapore Citizen or Permanent Resident buying an HDB flat under the housing scheme can use CPF OA savings.[7]

Your CPF OA must have sufficient balance after accounting for accrued interest and housing withdrawals. HDB automatically deducts from your CPF upon payment due dates.[7]

First-timers qualify for grants like Enhanced CPF Housing Grant (EHG) up to $120,000 for families, offsetting downpayment needs.[6]

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

Follow these actionable steps for a smooth process:

Check CPF Balance: Log into your CPF account via Singpass to confirm OA savings. For a $450,000 flat, ensure at least $112,500 (25%) plus 1% accrued interest.[7]
Book Flat and Get HFE Letter: Secure your BTO or resale flat, obtain HDB Flat Eligibility (HFE) letter valid for 6 months.
Sign Agreement for Lease (AFL): Pay first instalment (5% under staggered scheme for eligibles) via CPF. HDB notifies CPF Board for deduction.[1][2]
Key Collection: Pay remaining 20% from CPF OA. Grants like EHG credited first to reduce amount needed.[1][6]
Monitor via myHDBPage: Track payments and CPF usage online.

Avoid pitfalls: Don't withdraw CPF early—HDB handles it directly. Insider tip: Build OA via voluntary contributions before booking for locals eyeing mature estates like Bedok.[7]

Staggered Downpayment Scheme and CPF

The Staggered Downpayment Scheme lets eligibles pay just 2.5%–5% at AFL signing, balance at key collection (2–4 years later).[1][4][9]

Eligibility: First-timers, younger applicant under 30, 5-room or smaller BTO/SBF. Full 25% still applies, payable fully via CPF for HDB loans.[1][3]

Example: $400,000 BTO flat—HDB loan: 5% ($20,000) at AFL from CPF, 20% ($80,000) later. This eases cash flow for weddings or emergencies.[1][2]

HDB Loan vs Bank Loan: CPF Usage Differences

HDB Loan (Concessionary Rate at 2.6%): 100% of 25% downpayment from CPF OA. Fixed for 25 years, stable for budgeting.[2]

Bank Loan: Minimum 5% cash (e.g., $20,000 on $400k flat), 20% CPF. Rates often start lower but float with SORA—compare via Homejourney bank rates.[2][3]

	HDB Loan	Bank Loan
Downpayment	25% CPF/cash	5% cash + 20% CPF/cash
Interest Rate	2.6% concessionary	SORA-based (check trends)
CPF Usage	Full 25%	Up to 20%

HDB's 2.6% rate suits risk-averse buyers; banks may be better if rates drop. See our HDB vs Bank Loan Rates 2026: Complete Comparison Guide ">HDB vs Bank Loan Rates 2026 Guide.

Documentation Checklist for CPF Downpayment

Singpass for CPF login and HFE application.
HFE letter from HDB.
CPF statement showing OA balance.
Proof of grants (e.g., EHG letter).
No separate docs needed—HDB/CPF auto-process.[7]

Pro tip: Use Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator to verify CPF sufficiency before applying.

HDB Loan Interest Rate and Financing Tips

HDB's concessionary rate remains at 2.6%, pegged 0.1% above CPF OA rate, fixed for loan tenure.[2]

For bank loans, rates tie to SORA. The chart below shows recent interest rate trends in Singapore:

Rates have stabilized post-2024 hikes, making HDB's 2.6% predictable vs bank fluctuations. Compare HDB vs bank via Homejourney for your best option.

Homejourney Makes It Safe and Simple

Skip bank queues—use Homejourney's multi-bank application at https://www.homejourney.sg/bank-rates. One Singpass login auto-fills CPF/income data, sends to DBS, OCBC, UOB, HSBC, and more.

Track offers side-by-side, calculate affordability instantly. Our verified platform ensures transparency, prioritizing your security. Find HDB flats in budget via https://www.homejourney.sg/search.

Pro Tips from Homejourney Experts

Top up CPF OA early—gains 2.5% interest tax-free.
For resale HDB, no staggered scheme; prepare full 25% upfront.[2]
Combine with EHG to minimize cash outlay.[6]
Consult Homejourney mortgage brokers for personalized advice—free via bank-rates page.
Avoid over-borrowing under TDSR; use our tools first.

Disclaimer: This is general info; consult HDB/CPF for your case. Rates as of 2026 may vary.

FAQ: Using CPF for HDB Down Payment

Can I use full CPF for HDB downpayment?
Yes, for HDB loans, 100% of 25% can be CPF OA. Banks require 5% cash minimum.[1][2]

What's the staggered downpayment for CPF users?
Eligibles pay 2.5%–5% at AFL, rest at keys, all via CPF for HDB loans.[1][4]

Is 2.6% HDB rate better than banks?
HDB's fixed 2.6% offers stability; banks may be lower short-term. Compare on Homejourney.[2]

How much CPF for $500k BTO downpayment?
$125,000 (25%) from OA, plus interest buffer.[2][7]

Where to check CPF eligibility?
CPF portal or Homejourney calculator for instant insights.

Ready to buy safely? Start with Homejourney's bank rates comparison and link back to our pillar on HDB Loan vs Bank Loan 2026 Comparison | Homejourney ">HDB vs Bank Loans for complete guidance.