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 BTO or resale flats when taking an HDB loan, or up to 20% when using a bank loan (with 5% minimum cash).[1][2][4]

Homejourney prioritizes your safety and trust by verifying all key details, so you can confidently plan your HDB down payment using CPF. This cluster article dives deep into using CPF for down payments, linking back to our comprehensive HDB Upgrader Mortgage Guide for full financing strategies.HDB Upgrader Mortgage Guide: Complete Singapore Financing

Understanding HDB Downpayment Rules in 2026

The total downpayment for HDB flats is 25% of the purchase price, as Loan-to-Value (LTV) limits allow borrowing up to 75%.[2][4] For a $500,000 BTO flat, this means $125,000 downpayment.

With an HDB loan, the entire 25% can come from CPF OA savings, cash, or a mix—no mandatory cash component.[1][4] Bank loans require at least 5% cash ($25,000 in this 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 for families—can offset downpayments, credited directly to your OA for use.[7] Always check your CPF balance via the CPF portal before applying.

Staggered Downpayment Scheme: Spread Your CPF Payments

HDB's Staggered Downpayment Scheme lets eligible buyers split payments: 5% (or as low as 2.5% for young couples under deferred income assessment) at Agreement for Lease signing, and the rest (20-22.5%) at key collection 2-4 years later.[1][5][8]

Eligibility: First-timers or mixed couples (first- and second-timer), HFE letter before younger applicant's 30th birthday, and 5-room or smaller BTO/Sale of Balance flats.[2][3] Use CPF OA for both instalments under HDB loans; bank loans need 5% cash upfront.[1]

This eases cash flow, giving time for CPF contributions to grow. Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator helps simulate your staggered payments instantly.

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

Follow these actionable steps for a smooth process:

Check CPF OA Balance: Log into CPF portal or Singpass app. Ensure OA covers your share (joint applicants split based on ownership).
Get HFE Letter: Apply via HDB Flat Portal. Indicates loan eligibility and downpayment needs.
Book Flat & Sign Agreement: At booking, pay first instalment (2.5-5%) via CPF/girop. HDB deducts from OA automatically.
Apply for Grants: EHG or Proximity Housing Grant offsets downpayment—funds into OA for use.
Key Collection: Pay remaining via CPF OA. Accruing interest is deducted from OA too.

For bank loans, secure In-Principle Approval (IPA) first via Homejourney's multi-bank tool at https://www.homejourney.sg/bank-rates—one Singpass application sends to DBS, OCBC, UOB, HSBC, and more.

Documentation Checklist

Singpass for CPF/HDB portals.
HFE letter or bank IPA.
CPF statement (last 3 months).
Income docs for grants (auto-fills via Singpass on Homejourney).
Joint consent if married.

Pro tip: Top up OA via voluntary contributions before booking—interest earned boosts your downpayment power. Insider local knowledge: For Punggol BTOs ($400k-$600k), aim for $100k+ OA per person to cover 25% comfortably.

HDB Loan vs Bank Loan: CPF Usage Compared

HDB Loan: Full 25% CPF OA allowed. Fixed 2.6% interest (as of 2026), ideal for stability.[4]

Bank Loan: 5% cash min + 20% CPF. Often lower rates (track via SORA). Compare via Homejourney: Submit once, get offers from DBS, OCBC, UOB, Standard Chartered, Maybank, CIMB, RHB, and others side-by-side.

Skip bank queues—Homejourney's Singpass integration auto-fills income, CPF, employment data for instant pre-approvals. See our HDB Loan vs Bank Loan 2026 comparison.HDB Loan vs Bank Loan 2026: Which Financing Option Suits You Better?

Pro Tips to Maximize CPF for Downpayment

Grants First: Apply EHG early—reduces effective downpayment by $80k avg for families.
Top-Ups: Transfer SA/MA to OA tax-free (up to limits) before payment.
Avoid Pitfalls: Don't withdraw CPF prematurely; OA must cover payment + 20% accrued interest.
Upgraders: Sell existing HDB first—proceeds refund OA for new downpayment. Details in our Using Sale Proceeds Guide.Using Sale Proceeds for Down Payment: Homejourney's Complete Guide
Track Rates: Bank loans tie to SORA; time your IPA when rates dip.

Homejourney users: Use our real-time tracker and multi-bank submission to boost approval odds safely.

What Happens After Paying with CPF?

Post-payment, monthly loan repayments deduct from CPF OA first (if sufficient). Shortfall uses salary. Expect 3-4 year wait for BTO keys—use time to save cash for renovations. Search budgeted HDBs on https://www.homejourney.sg/search.

Disclaimer: Rules per HDB/CPF as of 2026; consult HDB InfoWEB or Homejourney Mortgage Brokers for personalized advice. Homejourney verifies data for your confident decisions.

Frequently Asked Questions (FAQ)

Can I use full CPF for HDB downpayment?
Yes, 100% CPF OA for HDB loans; 20% max for bank loans (5% cash required).[1][2]

What's the minimum CPF needed for a $450k resale HDB?
$112,500 total (25%). HDB loan: All CPF. Bank: $22,500 cash + $90,000 CPF.[2]

Do upgraders use CPF differently?
Sale proceeds restore OA first, then use for new downpayment. See our HDB Upgrader Guide.HDB Upgrader Mortgage Guide: Complete Singapore Financing

Can I get refund if overpay with CPF?
Yes, excess refunds to OA post-sale or completion.

How does Homejourney help?
Compare rates, calculate eligibility, apply to 10+ banks via Singpass at https://www.homejourney.sg/bank-rates.

Ready to use CPF for your HDB downpayment? Start with Homejourney's safe, trusted tools—calculate now and find your dream flat. For full HDB upgrade guide, visit our pillar content.