How to Use CPF for HDB Down Payment: Your Complete 2026 Guide
You can use your CPF Ordinary Account (OA) savings to pay your entire HDB down payment, or combine CPF with cash—whichever suits your financial situation best.[1][3] In 2026, the standard HDB down payment is 25% of your flat's purchase price, whether you're buying a Build-To-Order (BTO) flat or a resale property.[1] The flexibility to use CPF makes homeownership more accessible for Singapore families, and when combined with CPF Housing Grants of up to $120,000 for families, the initial cash outlay becomes significantly more manageable.[1][5]
At Homejourney, we understand that navigating CPF usage for your down payment can feel overwhelming. That's why we've created this comprehensive guide to help you understand your options, calculate your exact down payment amount, and make confident decisions about your HDB purchase. Our platform prioritizes your safety and trustworthiness by verifying information and providing transparent, step-by-step guidance throughout the process.
Understanding Your HDB Down Payment Options
Your down payment can be paid entirely through CPF OA savings if you have sufficient balance, or you can use a combination of CPF and cash.[1][3] The key advantage of using CPF is that you're essentially using money you've already set aside for housing, without requiring additional cash from your pocket.
For BTO flats specifically, you have flexibility in how you structure your payment across two stages: when you sign the agreement for lease and when you collect your keys.[3] This staggered approach is particularly helpful if you're still accumulating CPF savings or managing cash flow.
Standard Down Payment Breakdown (2026)
- HDB Loan Option: 25% total down payment, fully payable via CPF OA or cash[1][3]
- Bank Loan Option: 25% total down payment with minimum 5% cash required; the remaining 20% can be paid using cash or CPF OA[1][3]
The choice between HDB loan and bank loan affects not just your down payment structure, but also your interest rates and long-term costs. For a detailed comparison of these options, refer to our comprehensive HDB Loan vs Bank Loan 2026 Comparison guide to understand which option saves you more money.
The Staggered Downpayment Scheme: Pay Less Upfront
If you're a young couple or first-time buyer, the Staggered Downpayment Scheme can dramatically reduce your initial financial burden.[4] This scheme allows you to split your down payment into two instalments, giving you more time to accumulate CPF savings or arrange financing.
How the Staggered Scheme Works
- First instalment (at signing of agreement for lease): 5% of flat price using CPF OA or cash
- Second instalment (at key collection): 20% of flat price using CPF OA or cash[3]
This means instead of paying 25% upfront, you only need to arrange 5% initially, giving you time to accumulate additional CPF savings or arrange financing before the second payment.[2][3] Both instalments can be paid entirely through CPF, entirely through cash, or any combination that works for your situation.
Ultra-Low Initial Payment for Young Couples
Eligibility for 2.5% initial down payment:[1][2]
- At least one applicant must be age 30 or below
- Both parties must be first-time applicants, OR one first-timer and one second-timer
- Application must be made no later than the younger applicant's 30th birthday
- You must qualify for deferred income assessment (students, NSFs, or those who completed NS/studies within 12 months)
For young couples using the staggered scheme with deferred income assessment, the payment schedule looks like this:[1]
- With HDB Loan: 2.5% initially, then 22.5% at key collection
- With Bank Loan: 2.5% initially, then 22.5% at key collection[1]
This dramatic reduction in initial outlay—from the standard 10% to just 2.5%—makes homeownership significantly more accessible for younger Singaporeans still building their CPF balances.
Step-by-Step: Using CPF for Your Down Payment
Step 1: Obtain Your HDB Flat Eligibility (HFE) Letter
Before you can calculate your exact down payment or access HDB's online tools, you'll need an HFE letter from HDB.[1] This letter confirms your eligibility to purchase an HDB flat and is required to access the HDB resale down payment calculator. Apply for your HFE letter through the HDB website or visit your nearest HDB branch.
Step 2: Calculate Your Exact Down Payment Amount
Use the HDB resale down payment calculator (available on the HDB website with your HFE letter) to determine your exact down payment amount after accounting for any CPF Housing Grants you qualify for.[1] This calculator shows you precisely how much cash and CPF you'll need to prepare.
At Homejourney, we've built an eligibility calculator that works alongside the HDB calculator to give you a complete picture of your borrowing power and down payment requirements. Visit our bank rates page to access this tool and understand your exact financial position before proceeding.
Step 3: Check Your CPF OA Balance
Log into your CPF account via the CPF website or mobile app to verify your current Ordinary Account balance.[4] This tells you how much of your down payment you can cover with CPF, and how much additional cash you'll need to arrange. Remember that CPF grants (if you qualify) will be applied automatically to reduce your payable amount.
Step 4: Arrange Your Financing
Once you know your down payment amount and CPF coverage, it's time to secure your housing loan. This is where many first-time buyers face confusion—comparing rates across multiple banks is time-consuming and complicated.
Homejourney simplifies this process significantly. Instead of applying to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other banks individually, you can submit one application through Homejourney and receive offers from all major banks simultaneously. Here's how it works:
- Use Singpass for instant application: Your income, employment, and CPF data auto-fills instantly via MyInfo integration, saving you hours of paperwork
- One application, multiple offers: Your details are sent to all partner banks at once
- Compare side-by-side: See interest rates, tenure options, and monthly instalments from each bank in one place
- Track in real-time: Monitor your application status and receive offers directly through the platform
Visit Homejourney's bank rates page to start your loan application today. Our mortgage brokers are available to provide personalized guidance throughout the process.
Step 5: Submit Your Resale Application or BTO Agreement
For resale flats, submit your application via the HDB portal and declare your CPF intent.[1] For new BTO flats, this happens at the Agreement for Lease stage. You'll need to provide your HFE letter and confirm your chosen financing option.
Step 6: HDB Financial Plan Confirmation
HDB will review your application and approve your CPF withdrawal for the down payment.[1] For young couples using the staggered scheme, CPF may be released in 5-25% tranches at different stages.
Step 7: Pay Your Down Payment
Transfer your CPF OA to the seller at key collection or at staged intervals (such as through the Staggered Downpayment Scheme: 2.5%-5% initial, then remaining balance at key collection).[1][2] Your bank or HDB will provide specific instructions on how and when to make this transfer.
Important Considerations: MSR and Mortgage Eligibility
Before committing to your down payment and loan amount, you need to understand your mortgage servicing ratio (MSR) limits. This directly affects how much you can borrow and therefore your down payment strategy.
The MSR 30% limit means your monthly housing instalment cannot exceed 30% of your gross monthly income.[1] This is a critical constraint that affects your HDB loan eligibility and EC loan eligibility. Understanding MSR is essential because it determines your maximum borrowing power, which in turn affects how much down payment you'll need to contribute.
For a comprehensive explanation of how MSR affects your eligibility and specific calculations for your situation, refer to our MSR Guide for HDB and EC Buyers. This guide provides detailed examples and helps you calculate your exact mortgage eligibility based on your income and existing debt obligations.
Additionally, if you have other debts (car loans, personal loans, credit card balances), your TDSR (Total Debt Servicing Ratio) will also impact your borrowing capacity. Learn more in our TDSR Explained guide to understand how all your debts factor into your mortgage approval.
Pro Tips to Maximize Your CPF Usage
- Check your CPF balance early: Don't wait until you've found a property to check your OA balance. Start planning 6-12 months before you intend to buy so you can understand your financial position and potentially increase your CPF contributions if you're self-employed.
- Understand CPF grants: If you're a first-time buyer or upgrading, you may qualify for CPF Housing Grants of up to $120,000 (for families) or $30,000 (for singles). These grants reduce your down payment requirement significantly.[1]
- Consider the loan type carefully: HDB loans typically have lower interest rates but less flexibility, while bank loans offer more options but require higher down payments. Use Homejourney's bank rates comparison tool to see current rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and other major banks.
- Plan for Basic Healthcare Sum (BHS): After using CPF for your down payment and monthly instalments, you must maintain a minimum balance in your Ordinary Account (the BHS requirement). If you fall short, you'll need to top up your CPF within 3 months of key collection.
- Use the staggered scheme if eligible: If you qualify for the Staggered Downpayment Scheme, use it. The ability to pay just 5% (or even 2.5%) initially gives you more financial flexibility and time to accumulate additional savings.
Common Pitfalls to Avoid
- Insufficient CPF balance: Don't assume you have enough CPF until you've verified your exact balance. Many first-time buyers are surprised to learn their CPF is lower than expected due to mandatory contributions to their Medisave and Special Accounts.
- Overlooking the BHS requirement: Plan ahead to ensure you maintain the required Basic Healthcare Sum after your down payment. Running short of CPF after purchase can create financial stress.
- Not comparing loan options: Accepting the first loan offer you receive could cost you tens of thousands in interest over 25-30 years. Always compare rates from multiple banks. Homejourney makes this simple with our multi-bank application system.
- Ignoring MSR limits: Don't borrow the maximum amount just because you're eligible. Consider your actual monthly budget and whether you can comfortably afford the monthly instalment alongside other expenses.
- Failing to get HFE letter early: Some buyers wait until they've found a property to apply for their HFE letter. This delays the entire purchase process. Apply early so you're ready when you find the right flat.
Finding Your Next Home: Next Steps
Once you understand your down payment requirements and borrowing power, you're ready to search for your ideal HDB flat. Use Homejourney's property search tool to find flats within your budget and preferred locations. Our platform helps you filter by price, location, flat type, and other key criteria so you can focus on properties that truly match your needs.
After you've secured your loan and completed your purchase, remember that homeownership involves ongoing maintenance. From regular HDB flat upkeep to air conditioning servicing, Homejourney can connect you with trusted service providers. Learn more about air conditioning maintenance services and other home care solutions to keep your new flat in excellent condition.
