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- Buying A House
...A Place To Call Your Own

 
How much CPF can you use?
 
a) A new flat bought directly from HDB financed with a HDB concessionary loan
b) A resale flat bought in the open market financed with a HDB concessionary loan
c) Any residential property financed with a bank loan
 
 
a)
 
You can use your CPF Ordinary Account savings to pay the initial 10% downpayment, the balance of the purchase price and the monthly instalment payments of the loan. Use our Monthly Instalment Calculator to find out the monthly instalment payable on a housing loan.
 
Also, HDB requires that you use all your CPF Ordinary Account savings towards the payment of the property before granting you any housing loan.
 
To find out more about the eligibility criteria for a HDB concessionary loan and other terms and conditions, please visit HDB’s website at www.hdb.gov.sg.
 
 
b)
A resale flat bought in the open market financed with a HDB concessionary loan
 
You can use your CPF Ordinary Account savings to pay the initial 10% downpayment, the balance of the purchase price and the monthly instalment payments of the loan. Use our Monthly Instalment Calculator to find out the monthly instalment payable on a housing loan.
 
If your housing loan is still outstanding when your total CPF used has reached the Valuation Limit (VL) and,
  • you are below 55 years old, you may continue to use your CPF Ordinary Account savings to repay the housing loan after setting aside half of the current Minimum Sum. Savings in the CPF Special Account (including the amount used for investments) and CPF Ordinary Account can be used to meet half of the current Minimum Sum.

  • you are 55 years and above, you may use your CPF Ordinary Account savings to repay the housing loan after setting aside your Required Minimum Sum cash component.
The VL is the lower of the property price or property value at the time of purchase.
 
 
c)
Any residential property financed with a bank loan
 
You have to make a cash downpayment of at least 5% of the Valuation Limit (VL). You may refer to MAS website at www.mas.gov.sg for more information on the minimum cash downpayment that you have to pay. The VL is the lower of property price or property value at the time of purchase.
 
If you are buying an Executive Condominium and are eligible for the Housing Grant, you can use the grant to pay the downpayment beyond the required cash component of at least 5% of the VL when signing the Sale and Purchase Agreement.
 
You can use your CPF Ordinary Account savings and future monthly contributions to your CPF Ordinary Account to pay for the property and/or to service the monthly instalments on the housing loan.
 
If your housing loan is still outstanding when your total CPF used has reached the VL and,
  • you are below 55 years old, you may continue to use your CPF Ordinary Account savings up to the applicable Housing Withdrawal Limit to repay the housing loan after setting aside half of the prevailing Minimum Sum. Savings in the CPF Special Account (including the amount used for investments) and CPF Ordinary Account can be used to meet half of the prevailing Minimum Sum.

  • you are 55 years old and above, you may use your CPF Ordinary Account savings up to the applicable Housing Withdrawal Limit to repay the housing loan after setting aside your Required Minimum Sum cash component.
 
 
Properties with a remaining lease of less than 60 years
 
For HDB flats/ private properties with leases of less than 60 years, the following rules apply:
  1. No CPF can be used if the remaining lease of a property is less than 30 years.

  2. A flat owner is eligible to use his CPF for the property if his age plus the remaining lease of the flat is at least 80 years.

  3. The maximum amount of CPF that can be used is capped at a percentage of the lower of the purchase price and the value of the flat at the time of purchase. The percentage is computed based on the remaining lease of the flat when the youngest eligible member using CPF reaches age 55, as shown below:
 
Remaining Lease when the youngest eligible owner using CPF turns 55

X
  Lower of Purchase Price or
Value of the flat
_______________________      
The remaining Lease at the point of purchase       
 
You can also click here to use the table to help you with the calculation.
 
 
Multiple property purchase
 
If you already own a property (HDB flat or private property) bought with your CPF savings and wish to buy another property with CPF savings from 1 July 2006, you will be able to do so after setting the prescribed Minimum Sum as follows:
  • If you are below 55 years old, you are required to set aside half of the prevailing Minimum Sum in your Ordinary and Special Accounts (including the amount used for investment).

  • If you are 55 years and above, you are required to set aside the required Minimum Sum Cash Component in your CPF Retirement Account.
 
The maximum amount of CPF you can use for the second and subsequent properties is:
  • the VL for properties with a remaining lease of at least 60 years; or

  • A percentage of the VL for properties with a remaining lease of less than 60 years but at least 30 years.
 
However, if you intend to sell your existing property, the Board will allow a grace period for you to sell off your existing property. During the grace period, the rule to set aside the prescribed Minimum Sum will not apply. The grace period is as follows:

(i) If you are buying a completed property – a grace period of six months will be given to you to sell off your existing property; or

(ii) If you are buying a property still under construction – a grace period of six months from the issuance of Temporary Occupation Permit (TOP) will be given to you to sell off your existing property.

 
 
If your existing property is not sold after the grace period, you are not able to use your CPF for your property purchase unless you are able to set aside the prescribed Minimum Sum in the respective Accounts.
 
This applies if you are buying your second or subsequent properties using your CPF on or after 1 July 2006.
 
Please note that this is not applicable if you are applying to use your CPF to purchase a second or subsequent property with non-related singles. Non-related singles can only jointly use their CPF to purchase only one property (private property or HDB flat).
 
 
Please note that the monthly service, conservancy and other charges relating to the use of the property, including taxes, cannot be paid with your CPF savings. You have to pay for these using cash.
 
To find out how much you can withdraw from your CPF for housing, log on to our Housing Withdrawal Calculator.
 
Click here for more information on Public Housing Scheme.
Click here for more information on Private Properties Scheme.


    Buying A House
    What is your current financial situation?
    Should you buy an HDB flat or a private property?
      When can I use my CPF savings to buy a home? 
      What can CPF savings be used for?
      What important factors should you be aware of when using CPF to repay a housing loan?
    When will CPF charge take effect?
      What happens when you sell?
    What happens if you divorce?
    What if you are a bankrupt?
      Other considerations
      Moving forward
     
     Last Updated on: Thursday, January 02, 2014 at 5:22 PM
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