How to Use CPF for HDB Downpayment: Complete Step-by-Step Guide
You can use your CPF Ordinary Account (OA) savings to pay up to 100% of the 25% HDB downpayment for BTO flats under an HDB loan, or up to 20% under a bank loan (with 5% minimum cash).[1][2][7] This guide from Homejourney breaks down the process, staggered scheme eligibility, and actionable steps to make your HDB BTO financing smooth and secure.
At Homejourney, we prioritize your safety by verifying all information and helping you calculate affordability upfront. This cluster focuses on CPF usage for downpayments, linking back to our HDB BTO Financing Complete Guide 2026 for full coverage.HDB BTO Financing Complete Guide 2026 | Homejourney
Understanding HDB Downpayment Rules in 2026
The total downpayment for HDB BTO flats is 25% of the purchase price, as the Loan-to-Value (LTV) limit is 75%.[2][3] For a typical $400,000 BTO flat, this means $100,000 downpayment.
- HDB Loan (HDB new flat loan): Full 25% ($100,000) from CPF OA, cash, or mix. No cash minimum.[1][2]
- Bank Loan (BTO mortgage): 5% cash minimum ($20,000) + 20% ($80,000) from CPF OA, cash, or mix.[2][3]
CPF OA savings are ideal as they earn accrued interest, and the government pays it back with interest if unused later.[7] Always check your CPF balance via the CPF portal before applying.
Staggered Downpayment Scheme for BTO Flats
Eligible first-timers can split payments: 5% at Agreement for Lease (AFL) signing and 20% at key collection (2-4 years later).[1][2][4] Young couples (HFE letter before age 30) may pay just 2.5% initially.[1]
Eligibility: First-timers or mixed couples, 5-room or smaller flats, valid HFE by younger applicant's 30th birthday.[2][3] No separate application needed—confirmed at booking.
| Payment Stage | HDB Loan | Bank Loan |
|---|---|---|
| AFL Signing | 5% CPF/cash | 5% cash + 5% CPF/cash |
| Key Collection | 20% CPF/cash | 15% CPF/cash |
This eases cash flow, especially with CPF growth over time.[1]
Step-by-Step: How to Use CPF for Your HDB Downpayment
Follow these actionable steps for HDB BTO payment. Use Homejourney's eligibility calculator first at https://www.homejourney.sg/bank-rates#calculator to confirm your CPF sufficiency.
- Check CPF OA Balance: Log into CPF portal or Singpass app. Ensure OA covers your share (e.g., $50,000 for couples on $400k flat). Tip: Include projected interest accrual.[7]
- Get HFE Letter: Apply via HDB Flat Portal. Needed for BTO ballot and loan eligibility.
- Book Flat & Sign AFL: Pay initial 5% (or 2.5%) via CPF/giRO at HDB appointment. Authorize CPF deduction online.
- Apply for Loan: HDB loan via e-Service; bank loan needs In-Principle Approval (IPA). Compare rates on Homejourney at https://www.homejourney.sg/bank-rates from DBS, OCBC, UOB, HSBC, and more.
- Key Collection: Pay remaining via CPF. Grants like EHG (up to $120k) offset first.[6]
Pro Tip: Time key collection when CPF OA peaks post-bonus. Avoid overcommitting—Homejourney's multi-bank application sends one form via Singpass to DBS, OCBC, UOB, etc., auto-filling your data.[2]
Documentation Checklist for CPF Downpayment
- Singpass for CPF authorization.
- HFE letter and IPA (for banks).
- Income docs for grants (if applicable).
- CPF statement (auto-pulled via Singpass).
Prepare via MyInfo for instant verification. See our HDB Loan Documents Checklist.HDB Loan Documents: Complete 2026 Checklist | Homejourney
HDB Loan vs Bank Loan: CPF Implications
HDB loans allow full CPF downpayment—perfect for cash conservation.[2] Bank loans require 5% cash but offer potentially lower rates. Compare via Homejourney: Skip bank queues with one Singpass application to all partners.
Reference our HDB Loan vs Bank Loan 2026 Comparison.HDB Loan vs Bank Loan 2026: Which Is Right for You? | Homejourney
Pro Tips to Maximize CPF for Downpayment
- Grants First: Apply EHG to reduce effective downpayment.[6]
- Staggered Eligibility Hack: Apply young for 2.5% initial—locals know this boosts early CPF savings.[1]
- CPF Top-Up: Voluntary contributions before AFL to boost OA (within limits).
- Avoid Pitfalls: Don't forget ABSD if ineligible; check via HDB portal. Use Homejourney's property search for budget-matched flats.
- Interest Trends: Monitor SORA for bank loans. The chart below shows recent interest rate trends in Singapore:
Rates impact post-downpayment costs—track live on Homejourney.
What to Expect After Using CPF
CPF used is set aside; monthly repayments can't use CPF until retirement age.[7] Processing: AFL payment instant; key collection 3-4 months prep. Banks assess via TDSR (60% debt cap). Homejourney tracks status and negotiates best offers from partners like Standard Chartered, Maybank, CIMB.
Disclaimer: This is general advice. Consult HDB or a Homejourney mortgage broker for personalized guidance. Rates as of 2026; verify officially.
Frequently Asked Questions (FAQ)
Can I use CPF for the full HDB downpayment?
Yes, 100% for HDB loans; 20% max for bank loans (5% cash required).[1][2]
Am I eligible for staggered downpayment?
First-timers or young couples with HFE by age 30, for 5-room+ smaller BTO.[1][3]
How much CPF for a $500k BTO?
$125k total (HDB loan). Initial 5% = $25k.[2]
Does EHG reduce CPF needed?
Yes, up to $120k credited to CPF for downpayment.[6]
Where to compare BTO loans safely?
Use Homejourney's bank-rates for trusted, verified comparisons.
Ready for your BTO loan guide? Start with Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator, search properties at https://www.homejourney.sg/search, and apply securely. Trust Homejourney for transparent, safe HDB BTO journeys—your home, our priority. Dive deeper in our HDB BTO Financing Pillar Guide.
