How to Use CPF for HDB Down Payment: Homejourney Guide
You can use your CPF Ordinary Account (OA) savings to pay up to 20-25% of an HDB flat's purchase price as down payment, depending on whether you choose an HDB loan or bank loan.[1][2]
This cluster article dives deep into how to use CPF for HDB down payment, a key step in your home buying journey. It connects to our pillar guide on HDB Financing Essentials, providing tactical advice for first-time buyers and upgraders. At Homejourney, we prioritize your safety with verified info to build trust in every transaction.
CPF HDB Purchase Rules: HDB vs Bank Loan
CPF OA for flat payments follow strict Loan-to-Value (LTV) limits of 75% as of August 2024, meaning down payments are 25% of the purchase price or valuation (whichever lower).[1][2]
- HDB Loan: Full 25% down payment from CPF OA or cash (no mandatory cash).[1]
- Bank Loan: 5% cash + 20% from CPF OA or cash.[1][2]
For a $500,000 BTO flat: HDB loan requires $125,000 (all CPF possible); bank loan needs $25,000 cash + $100,000 CPF.[1]
Key rule: CPF usage limited by remaining lease. Must cover youngest buyer to age 95 for full amount; otherwise prorated.[4] Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator checks this instantly via Singpass.
Step-by-Step: How to Use CPF for HDB Down Payment
Follow these actionable steps for a smooth CPF down payment HDB process.
- Check CPF OA Balance: Log into CPF portal or myHDBPage. Ensure savings cover your share (e.g., $60,000+ for singles).[3]
- Get HFE Letter: Apply via HDB Flat Portal before ballot. Confirms borrowing power including CPF.[1]
- Select Loan Type: HDB for flexibility (full CPF); bank for potentially lower rates. Compare via Homejourney at https://www.homejourney.sg/bank-rates.HDB Loan vs Bank Loan 2026 Comparison | Homejourney
- Book Flat & Pay Option Fee: 1% cash ($5,000 for $500k flat), non-refundable.
- Sign Agreement for Lease (AFL): Pay first down payment tranche using CPF. For eligible young couples, staggered scheme caps at 2.5% upfront.[1][6]
- Key Collection: Pay balance (20% HDB loan / 15-20% bank). Authorize CPF transfer via Singpass on HDB Resale Portal.[4]
- Reimburse Stamp Duty: Pay BSD/ABSD in cash first, then claim from CPF OA.
Avoid pitfalls: Don't exceed OA limits or forget lease proration. Insider tip: Retain up to $20,000 in CPF OA under HDB loan for interest earnings.[4]
Staggered Downpayment Scheme Details
Eligible first-timers (younger applicant ≤30 at HFE): Pay 5% at AFL (2.5% for students/NSFs), balance at key collection.[1][7]
This eases upfront costs for BTO 5-room or smaller flats.[1]
Documentation Checklist for CPF HDB Rules
Prepare these for seamless authorization:
- Singpass login for CPF/HDB portals.
- HFE letter from HDB.
- IC copies for all buyers.
- Proof of OA balance (auto-pulls via Singpass).
- Option to Purchase document.
- Income docs if grants apply (e.g., EHG up to $80k).[4]
Pro tip: Use Homejourney's multi-bank application at https://www.homejourney.sg/bank-rates – one form sends to DBS, OCBC, UOB, HSBC, and more. Singpass auto-fills CPF data for speed.
Real Example: Using CPF for $550,000 Resale HDB
Meet Ali & Mei, first-timers buying in Punggol. Valuation $540k, price $550k. HDB loan: 75% ($412.5k loan), $137.5k down payment fully from CPF OA ($70k each).[1][2]
They paid 5% ($27.5k) at AFL via CPF, balance at collection. Saved cash for renovations. Check similar flats on Homejourney's https://www.homejourney.sg/search.
Limitations: Second-timers face stricter LTV; short leases limit CPF.[4] Always verify on cpf.gov.sg.
Pro Tips to Maximize CPF for HDB Down Payment
- Grants First: EHG/PHG reduce effective down payment.[4]
- Timing: Top up OA months ahead; interest accrues.
- Bank Switch: Start with HDB, refinance later. See https://www.homejourney.sg/bank-rates.
- Safety Check: Homejourney verifies eligibility to prevent overcommitment.
- Post-Purchase: Maintain flat with Aircon Services .
Disclaimer: Rules per HDB/CPF as of 2026; consult professionals. Homejourney offers guidance, not financial advice.
FAQ: Common CPF HDB Purchase Questions
Can I use full CPF for HDB down payment?
Yes, with HDB loan (25% all CPF); bank requires 5% cash.[1][2]
What's CPF OA for flat limit?
Up to valuation or price (lower), prorated by lease to age 95.[4]
Do I need cash for CPF down payment HDB?
No for HDB loan; yes 5% for bank.[1]
How to authorize CPF for HDB?
Via Singpass on HDB/CPF portals at AFL/key collection.[4]
Eligible for staggered payments?
Yes if first-timers, HFE by 30th birthday, BTO ≤5-room.[1]
Master how to use CPF for HDB down payment with Homejourney's trusted tools. Calculate affordability and apply securely at https://www.homejourney.sg/bank-rates. Explore properties at https://www.homejourney.sg/search and return to our HDB pillar for full coverage.
