If I qualify for HDB concessionary loan, how much of my CPF savings can I withdraw?

You can use up to 100% of your CPF Ordinary Account savings to pay the initial 10% deposit as well as the balance of the purchase price.

If your existing CPF balance is not enough for full payment of the purchase price, you may take up a housing loan from HDB and use all the monthly contributions to your Ordinary Account for the instalment payment of the loan.

FOR A RESALE FLAT BOUGHT IN THE OPEN MARKET

You may use all the CPF savings in your Ordinary Account plus the housing loan from HDB to pay up to the Valuation Limit (VL). The VL refers to the market value of the flat at the time of purchase or the purchase price, whichever is lower.

HDB may grant you a loan of up to 90% of the VL. The HDB loan is subject to credit assessment by HDB. Also, HDB requires you to exhaust all your CPF Ordinary Account savings.

Payment at the time of purchase may comprise the following:
 

CPF savings	$   40,000 (b)	$   10,000 (b)
HDB loan	$   60,000	$   90,000
Cash	$   10,000	$   10,000
Purchase Price	$ 110,000	$ 110,000
Future CPF withdrawals to repay HDB loan(with interest)	$   60,000 (c)	$   90,000 (c)

If your housing loan is still outstanding when the total CPF usage for the flat reached the VL and you are below the age of 55 years, you may continue to use your CPF Ordinary Account savings to repay the housing loan if you can set aside the prevailing Minimum Sum cash component. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet the prevailing Minimum Sum cash component.

However, if you are 55 years and above when the VL is reached, you may use the excess CPF Ordinary Account savings to repay the housing loan after setting aside your Minimum Sum cash component shortfall.

If I am taking up a bank loan, how much of my CPF can I withdraw?

You can use your Ordinary Account savings, and the future monthly CPF contributions in this account to buy a flat and/or pay the monthly instalments of the housing loan up to 100% of the Valuation Limit (VL). The VL is the lower of the purchase price or the value of the flat at the time of purchase.

If your housing loan is still outstanding when the total CPF usage for the flat reached the VL and you are below the age of 55 years, you may continue to use your CPF Ordinary Account savings up to the applicable Housing Withdrawal Limit to repay the housing loan if you can set aside the prevailing Minimum Sum cash component. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet the prevailing Minimum Sum cash component.

However, if you are 55 years and above when the VL is reached, you may use the excess CPF Ordinary Account savings up to the applicable Housing Withdrawal Limit to repay the housing loan, after setting aside your Minimum Sum cash component shortfall.

The Housing Withdrawal Limit is as follows:

* For resale flats, this refers to the date of application received by HDB. For new flats, it refers to the date of booking of flat.

The following example shows how the additional CPF amount is computed when the 100% VL is reached. The computation is based on 120% VL and Minimum Sum of $106,000 (of which the cash component is $53,000).

The CPF charge will take effect upon the release of CPF savings. The ranking of charge is shown in below:

HDB may continue to act for the members in the disbursement and/or recovery of CPF savings.

Members also have the option of engaging their own solicitors to act for them. In such cases, the Board will need to appoint its own solicitor to disburse and/or recover the CPF savings and the legal fees incurred will be borne by the members.

Yes, you may use your Ordinary Account savings to pay the downpayment for the flat.

With effect from 1 Jan 2004, new buyers would have to pay Y% downpayment by cash. The balance of the downpayment (10% - Y) can be paid using CPF.

The downpayment is computed based on the VL.

^* If you are purchasing the flat at above valuation price, the difference between the Purchase Price and Valuation Price has to be paid in cash. In this example, you would need to pay the difference of $10,000 ($120,000 - $110,000) in cash.

The table below shows the schedule of Y over the years:

^* For resale flats, it refers to the date of application received by HDB. For new flats, it refers to the date of booking.

Note that the cash difference between the purchase price of the flat and your CPF savings and your bank loan has to be paid first before your CPF savings can be released.

Yes. A member, who currently has an HDB loan at market interest rate, may refinance his loan with a bank or finance company, subject to the HDB's consent. The new loan obtained from the new financier cannot exceed the outstanding HDB loan.

If you have used your CPF to pay for your flat or service the HDB loan, you would need to obtain the Board's consent in writing.

You will have to submit to the Board the application form (HBL/2). The Board will then release monies directly to the mortgagee upon approval of the application.

When you refinance your HDB loan with a loan from a bank or finance company, the Housing Withdrawal Limit will apply. However, your Housing Withdrawal Limit will not change if you subsequently refinance your loan to another bank or finance company.

If you have taken up a bank loan and wish to make a capital repayment or revise the monthly instalment amount, you may either:

Yes, you can use your CPF savings to buy a Studio Apartment from HDB provided you are 55 years and above. The amount of CPF savings that you can use is the amount left in your Ordinary and Retirement Accounts after setting aside the Minimum Sum Cash Component. The Studio Apartment will then be pledged for the amount of CPF used, up to the maximum property pledge allowed under the Minimum Sum Scheme.

If you are using your CPF savings for progressive payments, you can reserve your CPF savings for future progressive payments, when you first submit the application to use CPF for DBSS flats.

For purchase of DBSS flats, buyers are required to pay an option fee equivalent to 5% of the purchase price in cheque/cashiers order when they sign the Option to Purchase (OTP) with the developer. However, upon signing the Sale and Purchase Agreement with the developer and paying the balance 20% downpayment, the option fee for DBSS flats can be reimbursed with CPF monies if buyers have sufficient monies in their CPF Ordinary Account. However, this arrangement is only applicable for those buyers taking an HDB loan or those who are not taking a loan.

If your housing loan is still outstanding when your total CPF usage has reached the VL, you may withdraw further CPF savings if you can set aside the prevailing Minimum Sum cash component (for members below 55 years old), or the Minimum Sum cash shortfall (for members 55 years old and above).

If your housing loan is still outstanding when your total CPF usage has reached the VL, you may withdraw further CPF savings up to the applicable Housing Withdrawal Limit, if you can set aside the prevailing Minimum Sum cash component (for members below 55 years old), or the Minimum Sum cash shortfall (for members 55 years old and above).

You may use your CPF to pay for your flat as follows:

Yes, members who are co-owners of the HDB flat can use their CPF Ordinary Account savings jointly towards the purchase of their HDB flat.

Yes, CPF savings may be used to pay the stamp duty, survey and legal fees incurred in the purchase of the flat. However, monthly service, conservancy and other charges relating to the use of the property, including taxes, cannot be paid with your CPF savings.

If you wish to use your CPF savings for the payment of the stamp duty, please submit the HBL/1 application to the Board at least 10 days before the required payment due date.

You can use the savings in your Ordinary Account to pay the upgrading costs incurred for your HDB flat under the HDB Main Upgrading Programme and the Town Council Lift Upgrading Programme only. CPF savings cannot be used for renovation, improvement or repair work to the flat.

In addition to the CPF housing withdrawal limits which define the amount of CPF that can be used for housing, members should also be aware of factors like the CPF Minimum Sum requirements when they reach 55 years old, the effect of changes in housing loan interest rates, reductions in the amount of contributions to the Ordinary Account as they get older, etc. Please click here for the list of factors.

If you are currently using the Medisave overflows to service your monthly instalment payments, you may appeal to the Board in writing to continue to use the Medisave overflows to Special Account to service it, provided you meet the following conditions:

Yes. You can use the savings in your Ordinary Account to buy another HDB flat. However, HDB will require you to sell off your existing HDB flat 6 months after receiving the keys to your new HDB flat.

Yes. provided HDB has no objection to the purchase.

If your current HDB flat is bought using CPF savings, the restrictions on the use of CPF for multiple property will apply to the second property you buy with your CPF savings. This means that you have to first set aside in your Ordinary and Special Accounts (including savings invested under CPF Investment Scheme for Special Account), the prevailing Minimum Sum cash component (if you are below 55 years) or the Minimum Sum cash component shortfall (if you are aged 55 and above). Only excess savings in your Ordinary Account may be used to finance the purchase of the new property. Withdrawals for the new private property will be subject to a Withdrawal Limit of 100% Valuation Limit for properties with at least 60 years of lease, and the applicable Withdrawal Limit for properties with remaining lease of less than 60 years but at least 30 years.

However, if you intend to sell your existing HDB flat, the Board will allow a grace period for you to sell off your HDB flat. During the grace period, the Minimum Sum cash component requirement will not apply. The grace period is as follows :

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

(ii) If you are buying a property still under construction – you will be given a grace period of 6 months from the issuance of Temporary Occupation Permit (TOP) to sell off your HDB flat

After the grace period, CPF withdrawals will be stopped for your private property purchased, if you do not meet the Minimum Sum cash component requirement.

Yes, you may use the savings in your Ordinary Account to purchase a HDB flat. Please check with HDB on your eligibility for the purchase.

However, if this is the second property you are buying with your CPF savings and you do not intend to sell your private property, the restrictions on the use of CPF for multiple property will apply. This means that you have to first set aside in your Ordinary and Special Accounts (including savings invested under CPF Investment Scheme for Special Account), the prevailing Minimum Sum cash component (if you are below 55 years) or the Minimum Sum cash component shortfall (if you are aged 55 and above). Only excess savings in your Ordinary Account may be used to finance the purchase of the HDB flat. The total CPF withdrawal for the new property will also be capped at 100% Valuation Limit, which is the lower of the purchase price or valuation of the property at the time of purchase.

If you have bought your first private property before 1 July 2006, and apply to use CPF for this first private property only after making an application to use CPF for the second HDB flat financed with bank loan bought after 1 July 2006, the multiple property (MP) rule will apply to the second property. For example:

The multiple property rule would be applied to you and your co-owner as follows:

Member A can only use CPF for Property 2 up to 100%VL, and Member B can use CPF for Property 2 up to 126%VL. The WL at property level for Property 2 is capped at 126%VL. When the total amount used by both Member A and Member B reaches 100%VL, withdrawal from Member A's account will be stopped, and Member B can continue to use CPF up to 126%VL.

The required CPF refund (if any) upon the transfer of your share in the flat to your immediate family members or remaining owners, under the various conditions are stated below:

(a) If you have not turned age 55 yet, you need to refund the principal CPF amount withdrawn together with the accrued interest.

(b) If you are age 55 and above, and you had pledged your property as part of your Minimum Sum, you will need to refund the pledged amount plus accrued interest.

(c) If you are age 55 and above and you did not pledge your property as part of your Minimum Sum, you do not need to refund anything.

If the partshare selling price after paying your share of the outstanding housing loan is insufficient for the required CPF refund, your refund amount will be the higher of the two calculated by the formulae below:

The refund is capped at the partshare selling price or the required CPF refund, whichever is lower. This is provided your flat is sold at fair market value.

Example:

A & B are the owners of a flat, each owning 50%. A is selling his share of the flat to B. The refund to A’s CPF account is calculated as follows:

Assume:

The refund to A’s CPF account is the higher of the amounts calculated by Formula 1 and Formula 2:

Formula 1:

A’s partshare selling price = $140,000
Less A’s share of the outstanding housing loan = $115,000
Refund to A’s CPF account = $25,000

Formula 2:

Selling price of whole flat = $280,000
Less outstanding housing loan = $230,000
Balance Proceeds = $50,000

Total CPF used by A & B = $45,000 + $80,000
= $125,000
Refund to A’s CPF Account = $45,000/$125,000 x $50,000
= $18,000

In this case, we will collect the higher amount of $25,000 as calculated by Formula 1.

How much can B use from her CPF account to buy A’s share?

For HDB flats bought with HDB loans

The amount of CPF savings that B may use from her account to buy A’s share is calculated as follows:

New Valuation Limit
= 50% of old valuation limit + 50% of current market value
= (50% x $260,000) + (50% x $280,000)
= $270,000

Since B has already withdrawn $70,000 as the principal amount, she can withdraw another $200,000 to buy A’s share of the flat. Further withdrawal from her CPF account in excess of the new valuation limit of $270,000 will be subject to her Available Housing Withdrawal Limit (AHWL).

For more information on the AHWL, please click here.

For HDB flats bought with bank loans

Assuming A and B bought the flat in January 2003, the amount of CPF that B may use from her account to buy A’s share is calculated as follows:

New Valuation Limit
= 50% of old valuation limit + 50% of current market value
= (50% x $260,000) + (50% x $280,000)
= $270,000

Since B has already withdrawn $70,000 as the principal amount, she can withdraw another $200,000 to buy A’s share of the flat. Further withdrawal from her CPF account in excess of the new valuation limit will be subject to her Available Housing Withdrawal Limit (AHWL) or the Withdrawal Limit i.e. 150% of the new Valuation Limit, whichever is lower.

For more information on the AHWL and Withdrawal Limit, please click here.

For HDB flats bought with HDB loans

The sales proceeds (including the option monies) will be used to pay off the following, in this order:

1) Outstanding HDB loan
2) HDB resale levy (if any)
3) Required CPF refund

If the sales proceeds after paying (1) and (2) is not enough to make the required CPF refund, you do not need to top up the shortfall in cash, provided the flat is sold at fair market value. The net sales proceeds will be refunded to you and your spouse’s CPF accounts using the following formula:

For HDB flats bought with bank loans

The sales proceeds (including the option monies) will be used to pay off the following, in this order:

1) Outstanding bank loan
2) Required CPF refund
3) HDB resale levy (if any)

If the sales proceeds after paying (1) is not enough to make the required CPF refund, you do not need to top up the shortfall in cash, provided the flat is sold at fair market value. The net sales proceeds will be refunded to you and your spouse’s CPF accounts using the following formula:

Click here to find out how much you have withdrawn for your HDB flat.

Example 1:

A & B are the owners of a flat. They intend to sell the flat on the open market. The refund to their CPF accounts is calculated as follows:

Assume:

In this case, the sales proceeds after paying the outstanding housing loan is more than enough to pay the required CPF refunds for A & B. They have $160,000 in cash to divide between themselves. The CPF Board will not be involved in the distribution of the cash proceeds.

Example 2:

A & B are the owners of a flat. They intend to sell the flat on the open market. However, the sales proceeds are not enough to pay the outstanding housing loan and the required CPF refunds. The refund to their CPF accounts is calculated as follows:

Assume:

As the flat was sold at market value, we will not require the members to top up the CPF shortfall in cash.

The amount to be refunded to your CPF account upon the sale of the flat depends on when the flat is sold. The table below shows the amount to be refunded:

* This refers to the property pledge under the Minimum Sum Scheme. If you have withdrawn under medical grounds before age 55, you will not have a property pledge. In this instance, you need to refund 50% of cohort MS (which is the maximum property pledge allowed for healthy members) + accrued interest.

When a member passes away, the CPF savings withdrawn from his CPF account for the flat need not be refunded to his account. The flat will form part of his estate if it is held in tenancy-in-common or will pass on to the remaining surviving owner(s) if it is held in joint-tenancy.

You are not required to refund to your CPF account upon the sale of your flat, if you did not receive any contribution after you had applied to withdraw your CPF savings on ground of leaving Singapore or West Malaysia permanently.

The amount to be refunded to your CPF account upon the sale of the property depends on when the property is sold. For details, please see the table below.

The Board would credit the refund within a week upon receipt from its solicitors or HDB. Generally, it would take about 3 to 4 weeks from date of completion of sale for the funds to be credited into the member's CPF Account.

You have to be insured under HPS if you use CPF savings to pay your monthly housing instalments under the Public Housing Scheme (PHS). HPS will give you protection up to age 65 or the end of the loan period, whichever is earlier. In the event of permanent incapacity or death, the Board will pay up the outstanding housing loan if you are covered for the full housing loan so that your family can keep the flat. Otherwise, the Board will only pay up to the amount you are covered for.

If you have a private life or mortgage reducing insurance which is sufficient to cover your outstanding housing loan, you may apply for exemption from HPS. The above also applies if you are paying the housing instalments under PHS. HPS is optional only if you use cash to pay your monthly housing instalments.

The premium will be deducted automatically from your CPF Ordinary Account annually. You will be informed of the deduction through your CPF Yearly Statement of Account.

The Board will inform you if you do not have enough savings in your CPF Ordinary Account to pay the annual premium. You may then apply to pay the annual premium by:

You may visit our website to apply for the above services.

If you do not pay the outstanding premium, your HPS cover will be discontinued.

Contact Us

FOR ENQUIRIES,

If you are buying a HDB flat for the first time, here are some of things you should look out for:

1) Check your CPF Ordinary Account (OA) Balances
It is important to find out how much of your OA savings are available to help finance your purchase. Your existing OA balances and your future monthly CPF contribution to OA will help you decide what is the type of HDB flat you could afford.

To get a copy of your CPF Statement, you may print out the details from the CPF website (www.cpf.gov.sg) using your SingPass. Otherwise, you may go to any CPF Service Centres.

2) Work out your finances
With details of your OA balances, work out the amount of cash savings you have and what is the amount of housing loan you have to borrow. Check with HDB if you are eligible for the HDB concessionary loan or you may visit the HDB website www.hdb.gov.sg for details.

3) Conduct a search on the status of the CPF charge
If you are buying a resale HDB flat from the open market, ensure that the seller has refunded his CPF used towards the flat in order for the CPF charge to be lifted. Otherwise, you might run the risk of inheriting the CPF charge on your newly purchased flat. You may contact the Board to conduct a search for you at a fee.

4) Steps on applying to use your CPF

Members on HDB concessionary loans

a)	Complete the application form (HPS/9) in front of a HDB officer.
b)	HDB will send the form to the Board.
c)	The application will be processed within a week upon the receipt of the form.

Members on bank loans

a)	Submit the completed application form (HBL/1) to the Board.
b)	Submit your application to the Board at least 3 weeks before the payment due date.
c)	You will receive a letter of notification on the status of your application within 2 weeks.
d)	If you are engaging your own solicitor instead of HDB to act for you, you will have to bear the legal fees incurred by the Board in appointing its solicitor to disburse the CPF monies.