How to Use CPF for HDB Down Payment: Homejourney's 2026 Guide

How to Use CPF for HDB Down Payment: 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 2025, 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 HDB financing can feel overwhelming. That's why we've created this comprehensive guide to help you understand exactly how CPF works for your down payment, what grants you qualify for, and how to optimize your financing strategy. Our commitment to your safety and trust means providing verified, transparent information so you can make confident decisions about one of the most important purchases of your life.

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 (2025)

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.

CPF Housing Grants: Maximizing Your Down Payment Assistance

The Enhanced CPF Housing Grant (EHG) is one of the most valuable benefits available to first-time HDB buyers, and it directly reduces the amount you need to pay for your down payment.[1][5] Understanding your eligibility and how these grants apply is crucial to optimizing your financing.

Enhanced CPF Housing Grant (EHG) Amounts

For families: Up to $120,000[1][5]

For singles: Up to $60,000[1]

These grants are automatically applied to reduce your payable down payment amount, meaning you don't need to pay the full 25% upfront.[1] The grant amount varies based on factors including your flat type, location, and household income. First-timer families buying a 4-room flat or smaller may qualify for CPF housing grants of up to $80,000, while those buying 5-room or larger flats may receive different amounts depending on location and other factors.[6]

Eligibility Requirements for EHG

To qualify for the Enhanced CPF Housing Grant, at least one member of your household must have been continuously employed for at least 12 months.[1] This requirement ensures that you have stable income to support your mortgage commitment. If you're a student, National Serviceman (NSF), or have recently completed your studies or NS, you may still qualify under special schemes that allow deferred income assessment—meaning you can apply now and meet the 12-month employment requirement later.

Young couples (where at least one party is age 30 or below) benefit from additional schemes that can further reduce their initial down payment burden, which we'll explore in detail below.

The Staggered Down Payment Scheme: Spreading Your Costs

If managing a large upfront payment feels challenging, the HDB Staggered Down Payment Scheme allows you to split your down payment into two manageable instalments.[2][3][8] This scheme is available for uncompleted BTO flats and is designed specifically to ease the financial burden on first-time homebuyers.

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.

Young Couples' Enhanced Scheme (From June 2024)

Eligible young couples benefit from an even more favorable arrangement, with the initial down payment reduced to just 2.5% instead of 5%.[1][2] This applies to couples where at least one party is age 30 or below and who meet other eligibility criteria.

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.

For BTO flats, you can also use our HDB BTO Financing Complete Guide which includes detailed examples and scenarios.

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.