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 required for both BTO and resale flats, either fully or in combination with cash, depending on your loan type.[1][2][4]

This cluster article dives deep into using CPF for HDB down payments, a key step for first-time buyers. It connects to our pillar guide on HDB Loan vs Bank Loan 2026 Comparison | Homejourney ">HDB Loan vs Bank Loan 2026 Comparison, providing tactical advice to help you buy safely with Homejourney's trusted tools.

Understanding HDB Downpayment Requirements

The total downpayment for HDB flats is 25% of the purchase price, as the Loan-to-Value (LTV) limit is 75% for both HDB loans and bank loans.[2][3][4]

For HDB loans, the entire 25% can come from CPF OA savings, cash, or a mix—no mandatory cash portion.[1][4]

For bank loans, at least 5% must be in cash, with the remaining 20% from CPF OA, cash, or both.[1][2][3]

Homejourney prioritizes your safety by verifying these rules from official HDB and CPF sources, helping you avoid costly mistakes.

Staggered Downpayment Scheme: Spread Your Payments

HDB's Staggered Downpayment Scheme lets eligible buyers split the downpayment into two instalments: a smaller first payment at Agreement for Lease (AFL) signing and the balance at key collection (2-4 years later).[1][2][3][5]

Under the scheme:

First instalment: 5% (or as low as 2.5% for young couples under 30 or Deferred Income Assessment qualifiers) using CPF OA or cash.[1][5][9]
Second instalment: Remaining balance (20-22.5%) using CPF OA or cash.[2]

Eligibility: First-timers, couples with one first-timer, HFE letter before younger applicant's 30th birthday, and 5-room or smaller BTO/Sale of Balance flats.[2][3]

This scheme applies to uncompleted flats, easing cash flow—perfect for saving more CPF in the meantime.

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

Follow these actionable steps to deploy your CPF OA savings confidently.

Check CPF OA Balance: Log into your CPF account via Singpass. Ensure sufficient OA savings (e.g., for a $500,000 flat, need $125,000 for 25% downpayment).[8]
Confirm Eligibility: Use HDB's HFE letter calculator. Factor in grants like Enhanced CPF Housing Grant (up to $120,000 for families).[7]
Book Your Flat: At BTO selection or resale, notify HDB of CPF usage during booking.
At AFL Signing: Pay first instalment (5% or 2.5%) via CPF authorisation form. HDB deducts directly from OA.
Key Collection: Pay remaining via updated CPF authorisation. Grants offset if eligible.
Post-Payment: Monitor via CPF portal; interest accrues on used CPF from withdrawal date.[8]

Pro Tip: Maximise CPF by topping up OA before withdrawal—insider move for first-timers in areas like Punggol or Tengah BTOs, where flats start at $300,000-$400,000.[1]

Documentation Checklist for CPF Usage

Prepare these for smooth processing:

Singpass-linked CPF statement (last 12 months).
HFE letter from HDB.
CPF Ordinary Account Withdrawal Authorisation Form (provided by HDB).
ID proofs and marriage certificate (if applicable).
Proof of grants (e.g., EHG application).

Download forms from HDB InfoWEB. Homejourney's checklist in our HDB Loan Documents: Complete Checklist for 2026 | Homejourney ">HDB Loan Documents Guide ensures nothing's missed.

HDB Insurance Requirements: Home Protection Scheme (HPS)

Using CPF for HDB downpayment? Mandatory Home Protection Scheme (HPS) covers your CPF-funded portion against death or terminal illness.[Related HPS Guide]

How HPS Works with CPF: Premiums deducted monthly from CPF OA (e.g., $100k coverage ~$50/month for 30-year-old). Covers up to 90% LTV.Home Protection Scheme HPS: Complete HDB Buyers Guide | Homejourney

CPF HPS + HDB Insurance: HPS is non-cancellable once activated; shop for mortgage insurance only for excess bank loan portions.

Skip risks—Homejourney verifies HPS compliance for trusted transactions.

Common Pitfalls and Insider Tips

Avoid these traps:

Insufficient CPF: Shortfall paid in cash; plan with Homejourney's mortgage calculator.
Interest Accrual: CPF earns 2.5% OA interest post-withdrawal—time payments.
Grants Oversight: EHG reduces effective downpayment; apply early.

Local Tip: For resale HDB in mature estates like Toa Payoh (avg $600k), combine CPF with Proximity Housing Grant—boosts affordability.

Integrate with Bank Loans via Homejourney

Opting for bank loans? Use CPF for 20% after 5% cash. Compare DBS, OCBC, UOC rates hassle-free on Homejourney bank-rates.

Skip bank queues: One Singpass application sends details to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more. Track offers side-by-side.

Calculate eligibility instantly—perfect before searching properties on Homejourney property search.

FAQ: How to Use CPF for HDB Down Payment

Can I use full CPF for HDB downpayment?
Yes, for HDB loans: 25% entirely from CPF OA. Bank loans require 5% cash minimum.[1][4]

What is the Staggered Downpayment Scheme?
Splits 25% into 2.5-5% at AFL and rest at keys for eligible BTO buyers.[1][2]

Is HPS required when using CPF?
Yes, HPS (Home Protection Scheme) protects CPF-funded amounts; premiums from OA.Home Protection Scheme HPS: Complete HDB Buyers Guide | Homejourney

How much CPF for a $450k BTO?
$112,500 (25%); staggered: $22,500 first, $90k later.[2]

Where to check CPF balance for downpayment?
CPF portal via Singpass; use Homejourney calculator for projections.

Ready to buy safely? Use Homejourney's bank-rates for financing, property search for HDBs in budget, and connect to our mortgage brokers. Building trust one verified step at a time—start your journey today. For full coverage, see our HDB Loan vs Bank Loan 2026 Comparison | Homejourney ">HDB vs Bank Loan pillar.