Summary

Singapore home buyers can use their CPF Ordinary Account (OA) savings for the downpayment, monthly loan instalments, and stamp and legal fees on an HDB flat or a private home, the CPF Board says (page updated 6 Jul 2026). How much they can use depends on the type of purchase, the loan and the remaining lease.

For resale HDB flats and private homes, CPF use is capped at the lower of the purchase price and the valuation at the time of purchase, as long as the remaining lease covers the youngest buyer using CPF to age 95. Bank borrowers can go up to 120% of that figure once they have set aside their Basic Retirement Sum (BRS). For members below 55, the BRS is half of the prevailing Full Retirement Sum in the year, CPF Board says. When the home is sold, the owners refund the CPF they used, plus accrued interest, to their own accounts.

What this means for Singapore home buyers

How much CPF you can use

PurchaseCap on OA useAbove the cap
New HDB flat bought from HDB, with an HDB loanThe full purchase price, including the loanNot applicable
Resale HDB flat with an HDB loanLower of purchase price and valuationOA can keep paying the loan only after the BRS is set aside
HDB flat or private home with a bank loanLower of purchase price and valuationUp to 120% of that figure, only after the BRS is set aside

Source: CPF Board (updated 26 May 2026). Caps assume the lease covers the youngest buyer to age 95.

Once the cap is reached, any instalments that CPF can no longer cover must be paid in cash.

The age-95 lease test

For full use of CPF, the property's remaining lease must cover the youngest buyer using CPF until age 95. If it does not, CPF use is pro-rated, provided the property has at least 20 years of lease left, CPF Board says. Once the owners reach that pro-rated limit, no more OA savings can be used, even if they have set aside the BRS. The rule has applied since 10 May 2019.

CPF Board gives this example: two 25-year-olds buy a flat with 65 years of lease remaining for S$550,000. Because the lease will last only until they are 90, they can use up to S$495,000 of CPF, or 90% of the price.

The test turns on the youngest buyer's age, so the same flat can allow full CPF use for an older household and a reduced amount for a younger one. If the youngest co-owner later gives up ownership, the limit is recalculated on the next youngest co-owner's age.

What CPF cannot pay for

Some payments must be made in cash whatever your CPF balance, CPF Board says. For HDB flats, the option fee is paid in cash, and for resale flats so is the option exercise fee. Any amount above the property's valuation, known as cash over valuation (COV), must be paid in cash, for HDB flats and private homes alike. With a bank loan, at least 5% of the lower of the price or valuation must be cash.

Keep a buffer, and insure an HDB flat

CPF Board lets buyers keep S$20,000 in the OA at the point of purchase to pay instalments in times of need; HDB loan borrowers must otherwise use their OA savings first. The HDB loan rate is 2.6% a year, pegged at 0.1 percentage point above the prevailing CPF OA rate (MoneySense), which stays at 2.5% from October to December 2026, CPF Board said on 22 Sep 2026.

If you use CPF savings to pay for an HDB flat, you must be insured under the Home Protection Scheme (HPS). It pays off the outstanding loan, up to the sum insured, on death, terminal illness or total permanent disability, and covers members until age 65 or until the loan is paid, whichever comes first. Premiums are deducted from the OA each year.

When you sell: the CPF refund

Sale proceeds first repay the outstanding loan, and the rest goes back to CPF, up to the principal used plus accrued interest, CPF Board says. Accrued interest is what the money would have earned had it stayed in CPF, and it builds on both the principal and the interest already accrued.

If a whole property is sold at market value and the proceeds fall short, the owners refund only the selling price minus the outstanding loan, with no cash top-up. A sale below market value means topping up the shortfall in cash.

Refunds go to the OA for members below 55. For those aged 55 and above, they first top up the Retirement Account to the required retirement sum, and the balance stays in the OA. Voluntary refunds made before a sale earn CPF interest and reduce the amount due later.

Illustration: selling at market value

Illustration only. A couple sells their condo at market value for S$900,000 with S$350,000 of the loan outstanding. They used S$480,000 of CPF, and accrued interest brings the amount due to S$590,000.

  • The S$350,000 loan is repaid first.
  • The remaining S$550,000 goes back to their CPF accounts.
  • The S$40,000 shortfall does not have to be topped up in cash, because the sale was at market value.

FAQ

Can I use CPF for cash over valuation? No. Any amount above the valuation must be paid in cash.

What if the lease does not cover me to age 95? You can still use CPF on a pro-rated basis if the property has at least 20 years of lease left.

Do I have to top up my CPF refund in cash if I sell at a loss? Not if the whole property is sold at market value. You refund what is left after the loan is repaid.

Education only — not tax, legal or investment advice. Confirm with a licensed professional.

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