How to Use Your CPF for Property Purchase in Singapore

Thinking of using your CPF to buy property in Singapore? Learn how to use CPF savings for down payments, monthly loans, legal fees, and more.

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Jul 14, 2025 - 16:09

How to Use Your CPF for Property Purchase in Singapore

Singapore’s Central Provident Fund (CPF) is a mandatory social security savings scheme that helps citizens and permanent residents save for retirement, healthcare, and housing. One of its most significant features is the ability to use funds from the Ordinary Account (OA) to finance property purchases.

Whether you’re buying an HDB flat or a private condo, CPF can ease your financial burden—if you use it correctly. This guide explains how CPF works in property transactions, what you can and cannot use it for, and important limits to keep in mind.

Which CPF Account Is Used for Housing?

Only the Ordinary Account (OA) can be used for property-related expenses. Your OA savings can help cover:

Down payment
Monthly mortgage repayments
Buyer’s Stamp Duty (BSD)
Legal fees
Home Protection Scheme (HPS) for HDB owners

Properties You Can Use CPF For

You can use CPF OA savings for the following property types:

1. HDB Flats

New Build-To-Order (BTO) flats
Resale HDB flats

2. Executive Condominiums (ECs)

Only if the EC is still under HDB ownership (i.e., within first 10 years)

3. Private Properties

Leasehold (with remaining lease ≥ 30 years)
Freehold properties

What CPF Can Be Used For

1. Down Payment

If using an HDB loan: Up to 100% of down payment can be covered by CPF OA
If using a bank loan:
- 5% must be cash
- Remaining 20% can be paid using CPF

2. Stamp Duties

Buyer’s Stamp Duty (BSD)
Additional Buyer’s Stamp Duty (ABSD), but only if buying your first property

3. Monthly Mortgage Payments

You can set up monthly deductions from CPF OA to cover your home loan.

4. Legal Fees

If processed through your lawyer or HDB, CPF OA can pay part or all of legal costs.

5. Home Protection Scheme (HPS)

If you’re buying an HDB flat, CPF is used to pay the premium for HPS—an insurance policy that pays off your loan in the event of death or permanent disability.

What CPF Cannot Be Used For

Renovation expenses
Agent commissions
Cash Over Valuation (COV) for HDB flats
Monthly service and conservancy charges
Private property purchases where lease is under 30 years
Stamp duties for second or third property purchases

CPF Withdrawal Limits

CPF usage for housing is subject to limits to ensure members still have enough for retirement.

1. Valuation Limit (VL)

You can use CPF up to 100% of the property's valuation price or purchase price, whichever is lower.

Example:

Valuation: $500,000
Purchase price: $520,000
You can only use CPF for the first $500,000

2. Withdrawal Limit (WL)

CPF use is capped at 120% of the Valuation Limit, but only if you set aside your Basic Retirement Sum (BRS).

If you do not meet the BRS in your CPF account, you cannot use CPF beyond the Valuation Limit.

Using CPF for Joint Purchases

CPF can be used jointly by co-owners (e.g., spouses or siblings), but the allocation of payment and ownership share must be agreed upfront.

Each co-owner’s CPF usage is tracked separately, and sales proceeds are refunded accordingly upon sale, including accrued interest.

Refund of CPF Upon Sale

When you sell the property, you must refund the total CPF used, along with accrued interest (currently 2.5% p.a.), back into your CPF OA.

If the sales proceeds are insufficient to cover the refund, the shortfall is waived, but only if the property is sold at market value.

Steps to Use CPF for Your Home

Check Your CPF OA Balance
- Use the CPF website or mobile app
Apply for CPF Withdrawal
- Through your lawyer or HDB (depending on property type)
Submit Supporting Documents
- Sales agreement, stamp duty documents, and identity proof
CPF Board Processes Payment
- Takes 2–4 weeks depending on complexity
Set Up Monthly Deductions
- Your bank loan repayment can be automatically deducted from CPF

Key Tips and Considerations

Always ensure you leave some CPF savings for emergencies or retirement
You can combine CPF and cash for your down payment
Keep track of accrued interest—you’ll need to refund this upon sale
Be aware of CPF usage restrictions for older properties with short leases

Conclusion

Using CPF for your home purchase in Singapore can significantly reduce your cash burden—especially for first-time buyers. But it comes with rules, limits, and long-term consequences. Always check your CPF balance, understand your withdrawal limits, and consult with your lawyer or agent before proceeding. When used wisely, CPF can be a powerful tool for homeownership and financial flexibility.