Key Takeaways
- You can use CPF OA for HDB downpayment, monthly mortgage, and stamp duties — but accrued interest accumulates and must be refunded when you sell
- LTV limits are 75% for bank loans and 80% for HDB loans (on purchase price or valuation, whichever is lower)
- CPF Housing Grants — Enhanced Housing Grant and Proximity Housing Grant — can be used with CPF OA for eligible buyers
- Private property use of CPF is permitted but subject to the Valuation Limit and Withdrawal Limit after age 55
- The accrued interest rule surprises many sellers: you refund the CPF you used plus the 2.5% interest CPF would have earned — reducing your net cash proceeds
- Use the CPF Calculator to estimate your OA balance and housing affordability
Using CPF OA for HDB: What Is Permitted
Your Ordinary Account is the CPF pool available for housing. You can use OA funds for:
- Downpayment on an HDB flat (minimum cash component still required — see below)
- Monthly mortgage instalments for HDB or bank loans on HDB flats
- Stamp duties (Buyer's Stamp Duty and Additional BSD where applicable)
- HDB legal conveyancing fees
You cannot use SA, MA, or RA for housing purchases.
Minimum Cash Downpayment
| Loan Type | LTV Limit | Minimum Cash Downpayment |
|---|---|---|
| HDB Concessionary Loan | 80% | 20% (can be fully CPF OA) |
| Bank Loan | 75% | 5% must be cash; remaining 20% can be CPF OA |
On a $500,000 HDB flat with a bank loan: you need at least $25,000 in cash, and the remaining $100,000 (the full 25% minus the 5% cash floor) can come from CPF OA. With an HDB loan, the entire 20% downpayment can come from CPF OA — zero cash required if your OA has sufficient funds.
Decision Flowchart: Buying HDB with CPF
Are you buying an HDB flat? │ ├─ YES → Which loan type? │ │ │ ├─ HDB Concessionary Loan │ │ → LTV: 80% | Downpayment: 20% (100% can be CPF OA) │ │ → Monthly instalments: can be fully from OA │ │ │ └─ Bank Loan │ → LTV: 75% | Downpayment: 25% │ → 5% must be CASH (cannot use CPF) │ → Remaining 20% can be CPF OA │ → Monthly instalments: can be from OA │ └─ NO → Private Property? See the Valuation Limit section below.
The Accrued Interest Rule — The Most Important Thing to Understand
Warning: This surprises almost every property seller.
When you use CPF OA to buy your home, CPF Board tracks every dollar used. When you sell, you must refund to your CPF the principal amount used PLUS the accrued interest — the 2.5% CPF OA interest rate that the money would have earned had it stayed in your OA.
On a $500,000 flat, this can mean $50,000–$80,000 more than you originally borrowed from CPF.
You don't get to keep that extra — it goes back into your OA. Your cash proceeds from the sale are reduced accordingly.
Concrete example:
You used $120,000 of CPF OA to buy a flat 10 years ago. Over 10 years at 2.5% p.a. compound interest, the accrued interest amounts to approximately $33,600. When you sell, you must return $153,600 to CPF — not just the $120,000 principal.
| CPF Used (Principal) | Accrued Interest (10 years @ 2.5%) | Total CPF Refund on Sale |
|---|---|---|
| $120,000 | ~$33,600 | ~$153,600 |
This refund comes from your sale proceeds before you see any cash. The refunded amount goes back into your OA, not your bank account — you can use it again for your next property purchase or leave it to earn OA interest.
Model your OA balance and estimate the CPF accrued interest on a future property sale.
Open the CPF Calculator →CPF Housing Grants (2026)
Housing grants are credited directly to your CPF OA and can be used alongside your own CPF balance for the flat purchase or to reduce the outstanding loan.
Enhanced Housing Grant (EHG)
The EHG is the primary means-tested grant for first-time buyers purchasing resale or BTO flats.
| Household Income | EHG Amount |
|---|---|
| Up to $1,500/month | $80,000 |
| $1,501–$2,000 | $75,000 |
| $2,001–$2,500 | $70,000 |
| $2,501–$3,000 | $65,000 |
| $3,001–$3,500 | $60,000 |
| $3,501–$4,000 | $55,000 |
| $4,001–$4,500 | $50,000 |
| $4,501–$5,000 | $45,000 |
| $5,001–$5,500 | $40,000 |
| $5,501–$6,000 | $35,000 |
| $6,001–$6,500 | $30,000 |
| $6,501–$7,000 | $25,000 |
| $7,001–$7,500 | $20,000 |
| $7,501–$8,000 | $15,000 |
| $8,001–$8,500 | $10,000 |
| $8,501–$9,000 | $5,000 |
Source: HDB, hdb.gov.sg. Household income refers to average monthly income over 12 months.
Proximity Housing Grant (PHG)
| Purchase Arrangement | PHG Amount |
|---|---|
| Living with parents/children | $30,000 |
| Living within 4km of parents/children | $20,000 |
PHG applies to resale flats only. Singles purchasing alone can receive up to $15,000 (living with parents) or $10,000 (within 4km).
Family Grant (Resale)
For eligible first-time applicants purchasing a resale flat:
- Families/couples: $50,000 (4-room and below) or $40,000 (5-room and above)
- Singles: $25,000 (4-room and below) or $20,000 (5-room and above)
For the most current grant amounts and eligibility criteria, check hdb.gov.sg directly, as figures are periodically updated.
Using CPF for Private Property
CPF OA funds can also be used for private property — but with two important limits.
Valuation Limit (VL)
You can use CPF up to the lower of the purchase price or market valuation of the property. Once you've reached the VL, you must stop using CPF for that property.
Withdrawal Limit (WL)
Beyond the VL, CPF usage is further restricted unless your RA has met the Basic Retirement Sum ($110,200 in 2026). If your RA meets BRS, you can withdraw CPF up to 120% of the VL. CPF Board wants to ensure your retirement savings are protected before you use excessive CPF on property.
The 55-and-Over Restriction on Private Property
After you turn 55, CPF usage for private property is subject to the same RA sufficiency check. If your RA does not meet the prevailing BRS at 55, further CPF usage for housing is restricted.
What Happens at Sale: Step-by-Step
- Outstanding mortgage is discharged from sale proceeds
- CPF Board receives the refund of principal used plus accrued interest
- Any remaining proceeds after (1) and (2) are your cash
If the sale price is less than the outstanding mortgage plus CPF refund amount, you may face a shortfall — meaning you could walk away from a sale with nothing and potentially owe money. This scenario is rare in Singapore's property market but not impossible, particularly for properties bought near a market peak with large CPF drawdowns over many years.
Joint Purchases: Who Uses Whose CPF?
For joint property purchases (married couples, family, co-buyers):
- Each buyer uses their own OA — you cannot use your spouse's CPF directly for your share of the property
- Both parties contribute according to their ownership share
- Each party's accrued interest is tracked separately
On divorce, each party is entitled to the CPF refund corresponding to their own contribution plus accrued interest. For a full guide on how CPF works for couples, see our CPF for Couples article.
Planning Considerations
Should You Use CPF for Your Mortgage or Cash?
HDB concessionary loan rate: 2.6% p.a. (0.1% above the OA rate). Using CPF to pay down an HDB loan slightly disadvantages you — the interest saved on the loan (2.6%) barely exceeds the interest foregone in OA (2.5%). But the difference is marginal, and using CPF preserves your cash for other needs.
Bank loans at 3–4%+ make CPF usage clearly worthwhile — the loan interest rate exceeds the OA rate, so paying down the loan with CPF is financially beneficial.
Property as a Retirement Funding Strategy
Property equity — net of the CPF refund due — can supplement retirement income through right-sizing to a smaller flat, renting out a room, or the Silver Housing Bonus or Lease Buyback Scheme for elderly owners. But the CPF refund obligation means the gross sale price is not your retirement windfall — you need to net out the CPF refund to calculate what you actually keep.
Common Mistakes to Avoid
- Forgetting about accrued interest when calculating your profit on sale. The CPF refund is often tens of thousands of dollars more than the original CPF used.
- Using CPF to pay down an HDB loan when the loan rate is barely higher than the OA rate. The marginal benefit is small.
- Assuming private property has no CPF restrictions. The VL, WL, and RA sufficiency rules apply.
- Not accounting for CPF usage when estimating cash for the next property. Your OA may be lower than expected after a sale and refund.
- Neglecting to check if you can still use OA after 55. If your RA doesn't meet BRS ($110,200 in 2026), CPF usage for housing may be restricted.
🏗️ Coming Soon: CPF Property Move Simulator
Want to model your projected OA balance and exact accrued interest refund obligation before making your next property move? We are building a CPF Property Move Simulator — a tool to calculate your actual financial position, cash proceeds, and affordability in one click. Built for 2026 policies. Stay tuned.
Frequently Asked Questions
Can I use CPF for overseas property?
No. CPF OA can only be used for properties located in Singapore. There are no exceptions for overseas purchases.
What happens to accrued interest if I refinance my mortgage?
Refinancing does not reset or waive the accrued interest obligation. The clock keeps running from the date each CPF dollar was originally used for the property, regardless of how many times you refinance.
Does selling my HDB flat reset my CPF OA for the next purchase?
Partially. The CPF refund from your sale goes back into your OA, which you can then use for your next purchase. However, you may also be subject to a resale levy if you're buying a second subsidised flat, and your grant eligibility changes.
Can I use CPF for a property in my parents' names?
No. You can only use your own OA for properties on which you are named as an owner or co-owner.
If I pay off my mortgage entirely, do I still owe the accrued interest to CPF?
Yes. Paying off the mortgage early does not affect the CPF accrued interest obligation — that is only crystallised when you sell the property. The accrued interest continues to accumulate until the sale.
What is the difference between using CPF for an HDB loan vs. a bank loan on an HDB flat?
With an HDB loan (2.6% p.a.), you can use OA for the full 20% downpayment. With a bank loan (typically 3–4%+ p.a.), 5% of the purchase price must be cash — CPF OA can only cover the remaining 20%. Monthly instalments under both loan types can be paid from OA.
Written by the team at CPF Calculator SG. Reviewed against CPF Board policies effective January 2026. For the authoritative source, visit cpf.gov.sg and hdb.gov.sg. This article is for general information only and does not constitute financial advice.