Here’s a simple guide. This will help you understand how to use your CPF Ordinary Account (OA) savings for property purchase in Singapore. This applies whether you are buying a new HDB BTO, a resale flat, or a private condominium.
1. CPF Usage Basics
- CPF Ordinary Account (OA): You can tap your OA savings for:
- Downpayment (cash portion of your purchase)
- Monthly mortgage instalments
- Buyers’ Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD)
- CPF Usage Cap: You cannot withdraw more than your available OA balance.
Purchasing your first property
The property’s remaining lease should ideally cover the youngest buyer using CPF until age 95. If it does, you can use your CPF OA fully towards the purchase of the property. See table A for the amount of CPF that you can use for a new property.
A. New flat bought directly from HDB, Resale Flat, and Private Property
| Loan type | Amount you and your co-owner can use from your CPF |
| No Loan | You and your co-owner (if any) may use your respective OA savings to buy your property. |
| HDB loan | You and your co-owner (if any) may use your respective OA savings to pay your HDB loan in full. |
| Bank loan | You and your co-owners can use your OA savings. You can use up to the lower amount of the purchase price or the valuation price when you buy. If you have a housing loan, you can use your OA savings. You can use up to 20% of the lower amount between the purchase price and the property’s valuation price. This applies if you have set aside your Basic Retirement Sum (BRS)* in your CPF accounts. No one may use CPF thereafter. You and your co-owner can use money from your CPF accounts. If the lower price between the purchase price and the valuation price is $100,000, you can use up to that amount. You and your co-owner can use your OA savings up to $120,000. You can allow this if both of you have set aside your BRS. You must make any remaining housing loan payments in cash. |
For properties with a lease that doesn’t last until the youngest buyer turns 95, you and your co-owner can use your OA savings. You can use a percentage of the lower amount. This amount can be either the purchase price or the property’s valuation price at the time of purchase. For additional information, please see FAQ from CPF website.
Purchasing your second or subsequent property
You can only use your OA savings after you set aside the Basic Retirement Sum or Full Retirement Sum (FRS). Table B displays this information, and you must follow the limits in Table A above.
B. Basic Retirement Sum or Full Retirement Sum
| Property Ownership | Amount to be set aside |
| Buyer has at least one property that can last him/her till age 95 | BRS* |
| Buyer has no property that can last him till age 95 | FRS |
* Savings from your Retirement Account or Special Account and OA can be used to meet the requirement.
2. HDB Flats
A. Build-To-Order (BTO) & Sale of Balance Flats
Downpayment (20%)
- Can be fully covered by CPF OA.
- Cash requirement: $0 if you choose to use CPF entirely.
Monthly Repayments
- After Key Collection, you service your HDB loan (or bank loan) with a mix of CPF OA + cash.
- If you take an HDB loan, interest is at 2.6%, and you must meet the Mortgage Servicing Ratio (MSR) cap of 30%.
B. Resale HDB Flats
CPF Usage
- Same as BTO, except you must also pay a resale levy (if you had previously received a CPF housing grant).
- You must deduct the resale levy from your CPF OA before you can use OA for other purposes.
3. Private Properties (Condo / Landed)
Loan Type: Only bank loans (no HDB loans)
Downpayment (25%)
- 5% minimum in cash, 20% in CPF OA, and/or cash.
- You decide how much of the 20% you allocate from CPF versus extra cash.
Monthly Repayments
- CPF OA can service monthly bank loan instalments subject to the Total Debt Servicing Ratio (TDSR) cap of 55% (using a 4% stress-test rate).
Stamp Duties
- BSD and, if applicable (for second or subsequent properties/foreigners), ABSD can be paid with CPF OA.
4. Special Schemes & Grants
- Enhanced CPF Housing Grant (EHG) / Family Grant (for first-timer families buying an HDB resale flat or BTO)
- Grant is credited to your CPF OA—effectively boosting your OA balance to use toward your purchase.
- Grant is credited to your CPF OA—effectively boosting your OA balance to use toward your purchase.
- Proximity Housing Grant (PHG) can similarly top up your OA when you buy resale for staying near parents/siblings.
5. Key Rules & Considerations
- $20,000 CPF Balance
You must have the option to leave $20,000 in your CPF OA after property withdrawals when taking an HDB loan to finance your HDB purchase. - Refund on Sale
When you sell your home, the CPF used (plus accrued interest) must be refunded to your OA before you can withdraw any net gains. - Resale Levy Offsets
Any resale levy payable on your second HDB flat is first deducted from your OA before you use OA for the new purchase. - Age & Tenure Limits
If your loan tenure exceeds age 65 or 30 years (HDB) / 35 years (private), you may face lower Loan-to-Value limits, affecting how much OA you can use upfront. - Switching Loan Types
If you refinance or switch from an HDB loan to a bank loan mid-term, your CPF usage rules shift from MSR to MSR and TDSR; check your remaining OA carefully.
6. Step-by-Step CPF Drawdown Process
- Obtain HDB Loan Eligibility (HLE) or Bank In-Principle Approval (IPA)
- Sign Option to Purchase / S&P
- Submit CPF Withdrawal Application via My HDBPage or for bank loans, through your bank’s portal—upload:
- S&P Agreement
- CPF statement
- Other required forms
- Approval & Disbursement
- HDB will automatically deduct from CPF and disburse any cash shortfall.
- For bank loans, CPF is used to service monthly instalments once your loan is drawn down.
7. Tips for Maximizing Your CPF
- Top Up Early: If you anticipate tapping CPF for downpayment, make voluntary OA top-ups before applying to boost your drawdown capacity.
- Plan Grant Usage: Factor grants (EHG, PHG) into your CPF OA balance to minimize cash outlay.
- Monitor Your OA Balance: Use the CPF portal to track withdrawals, refunds, and projected balances post-purchase.
Bottom Line
CPF is a powerful tool that can drastically reduce your cash outlay when buying property in Singapore. By understanding the caps, grant offsets, and refund obligations, you can structure your financing for maximum efficiency and minimal upfront cash requirements.