Using CPF Ordinary Account Savings for Your Property Downpayment and Loans
Singaporeans can use their CPF Ordinary Account (OA) savings to finance up to the property's valuation limit for HDB flats and private properties, covering downpayments, monthly installments, stamp duties, and legal fees, provided the remaining lease meets specific criteria.[3][6]
This cluster article dives into the tactical details of using CPF for property purchase complete: financing and loan options, building on our pillar guide Using CPF for Property Purchase: Complete Buying Guide | Homejourney ">Using CPF for Property Purchase: Complete Buying Guide | Homejourney. At Homejourney, we prioritize your safety by verifying all information so you can make confident decisions in a trusted environment.
Key CPF Housing Rules You Must Know in 2026
CPF OA funds are primarily for retirement, but CPF Board allows their use for homeownership under strict rules. Your OA can pay for HDB flats, private residential properties, downpayments, and construction loans for landed homes.[3]
Crucial lease requirements: The property's remaining lease must cover the youngest owner to at least age 95 for full CPF usage. If shorter, usage is prorated; under 20 years, no CPF allowed.[1][6] For example, a 60-year-old buying a 70-year lease HDB in Toa Payoh would face limits, requiring more cash or bank top-up.
Homejourney tip: Use our Property Search ">property search tool to filter listings by lease length, ensuring CPF eligibility before viewing.
CPF Withdrawal Limits and Valuation Caps
The maximum CPF you can withdraw is the lower of your available OA balance or the purchase price up to the valuation limit. Upon sale, refund the used amount plus accrued interest to restore retirement savings.[3]
For resale HDB, get your HDB Flat Eligibility (HFE) letter first—it confirms CPF grants, loan eligibility, and amounts. No HFE, no Option to Purchase (OTP).[1]
Financing Options: HDB Loan vs Bank Loan with CPF
Combine CPF with loans for complete financing. HDB loans cap at 80% Loan-to-Value (LTV) for first-timers (20% downpayment: 5% cash minimum, rest CPF/cash). Bank loans offer up to 75% LTV (25% down).[1][5]
| Loan Type | LTV Limit (First-Timer) | Downpayment | CPF Usage |
|---|---|---|---|
| HDB Loan | 80% | 20% (5% cash min) | Yes, for balance |
| Bank Loan | 75% | 25% | Yes, after cash portion |
Check current Bank Rates ">bank rates on Homejourney or compare with HDB Loan vs Bank Loan: First-Time Buyer Guide | Homejourney ">HDB Loan vs Bank Loan Guide. Factor in Total Debt Servicing Ratio (TDSR) at 55% and Mortgage Servicing Ratio (MSR) at 30% for HDB.[4]
Step-by-Step: Using CPF for Property Purchase
- Apply for HFE Letter: Via HDB portal; confirms CPF grants up to $80k EHG for families earning <$9k/month.[1]
- Secure OTP: Pay $1k-$2k option fee (cash/CPF); exercise within 14-21 days with 4-24% deposit (CPF eligible).[1]
- CPF Withdrawal: Authorize via CPF portal post-OTP; covers downpayment balance, stamp duties (BSD/ABSD), legal fees.[2][3]
- Loan Disbursement: HDB/bank pays balance; use CPF OA for monthly repayments.
- Completion: Refund any excess valuation over price in cash; top-up if needed.
Timeline: 8-12 weeks from OTP to keys. Insider tip: For BTO in Punggol, factor 3-5 year wait—use CPF for resale meanwhile. See our BTO Buyer Complete Financing Guide: Homejourney 2026 ">BTO Financing Guide.
Costs Breakdown and Hidden Fees
Expect 1-2% of price in fees payable by CPF: Stamp Duty (BSD progressive up to 6%), ABSD (60% for foreigners 2026), legal (~$2k-$3k).[5]
- Option Fee: $1k-$2k (non-refundable if you back out)
- Agent Commission: 1-2% (seller pays, but negotiate)
- Valuation Fee: $200-$500 (cash)
- HPS Premium: CPF for HDB flats[2]
Homejourney verifies market data via Projects Directory ">projects directory—e.g., average Tampines resale HDB at $500k uses ~$400k CPF if valued lower.
Pros, Cons, and Decision Framework
Pros of CPF Financing: No interest on used CPF (2.5% OA rate credited), reduces cash outlay, tax-free.
Cons: Locks retirement funds; sale refunds with interest (could exceed proceeds); lease decay limits future use.[3]
Decision Table:
| Scenario | Best Option | Why |
|---|---|---|
| First-timer, ample OA | HDB Loan + Full CPF | Max LTV, low rates (2.6% 2026) |
| Short lease (<60 yrs) | Bank Loan + Partial CPF | Prorated limits |
Boost approval odds: See How to Improve Your Loan Approval Chances in Singapore | Homejourney ">Loan Approval Guide. Avoid mistakes like over-relying on CPF without cash buffer—read 7 Common Mortgage Mistakes First-Time Buyers Make in Singapore | Homejourney ">7 Mortgage Mistakes.
Common Mistakes and How Homejourney Helps
Mistake 1: Ignoring lease-to-95 rule—e.g., buying Yishun 99-year lease at age 50 limits CPF to 60%.[1] Solution: Homejourney's filters flag compliant properties.
Mistake 2: Forgetting refunds—selling depletes OA if not topped up early.[3] Tip: Voluntary refunds earn higher interest.
Disclaimer: This is general info; consult HDB/CPF Board or advisor. Homejourney ensures transparency for safe transactions.
FAQ: Using CPF for Property Purchase
Can I use CPF for private property downpayment?
Yes, OA for condos up to valuation, with 5% cash minimum; foreigners ineligible.[5]
What if property valuation is lower than price?
Pay excess in cash; CPF only to valuation limit.[3]
Can CPF pay monthly loans forever?
Yes, as long as OA sufficient and TDSR met; refund on sale.[2]
HDB vs Private CPF rules?
Similar, but private needs min 30-year lease for full use; check CPF portal.[6]
Grants with CPF?
EHG/PHG up to $80k/$30k credited to CPF OA for resale HDB.[1]
Ready to buy safely? Start with Homejourney's Property Search ">property search and Bank Rates ">mortgage rates. Link back to our pillar: Using CPF for Property Purchase: Complete Buying Guide | Homejourney ">Complete CPF Buying Guide. Your trusted partner for verified property journeys.
