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Using CPF for Buying Private Residential Property

Long Term Planning For Using CPF for Private Residential Property

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Are You Eligible For Using CPF for Buying Private Residential Property?

​The Private Properties Scheme enables CPF members to use their CPF Ordinary Account savings to buy or build private residential properties in Singapore for their occupation or investment.​​

All CPF members (SC / SPR) who are eligible to buy a private property are eligible to use their CPF savings under the Private Properties Scheme (PPS). You have to be insured under mortgage insurance when you use CPF for the monthly instalment of your housing loan.

We can use CPF to:

  • Pay the purchase price of the private property;
  • Repay the housing loan in part or whole or to service the monthly housing loan instalments taken to buy the private property;
  • Repay the construction loan in part or full or to finance the monthly construction loan instalments made to purchase land or to construct a house on that land;
  • Pay the stamp duty, legal costs, survey fees and other related cost incurred in the private property purchase, refinancing or construction of the house.

However, you are not eligible if you are buying a private property with a remaining lease of 20 years or less.

There are housing limits on the amount of CPF savings you can use:

If the duration of the private property’s remaining lease cannot cover the youngest buyer to at least 95 years old, CPF usage will be pro-rated based on how near to age 95 the property’s lease can last him/her.

Is There A Limit For Using CPF for Private Property?

CPF is primarily for your retirement. The more you use for the property, the less you may have for retirement. How to ensure you have enough savings for your retirement? The authority has to set a limit on the amount of CPF savings you can use for your housing.

You can use our CPF Housing Usage Calculator to compute how much of your CPF savings you can use for your property.

CPF Housing Usage Calculator

You can use this calculator to estimate how much CPF you can use for your property bought on or after 10 May 2019.

CPF Housing Usage for Shorter Lease Properties Calculator (< 60 years at the point of purchase)

You can use this calculator to determine your eligibility and the maximum amount of CPF you can use to buy a shorter lease property.

Please note that the calculator is applicable if

  • the date of purchase of the property is
    • on or after 1 July 2013 for HDB flats, but
    • before 10 May 2019; and
  • the property has a remaining lease of fewer than 60 years at the point of purchase.

Can I Use My CPF To Buy More Than One Property?

You can use your CPF savings to buy more than one property.

Bought on or after 10 May 2019
The amount of CPF savings that you may use for a second or subsequent property will depend on whether the remaining lease of at least one of the properties you own or are purchasing, where you have used CPF savings for the property, can cover you to at least 95 years old.

>> More details

Bought before 10 May 2019
However, with effect from 1 July 2006, you must set aside the current Basic Retirement Sum before you can use the excess savings in your Ordinary Account for the second or subsequent property.

The retirement sum will be raised annually; the amount you need to set aside will be adjusted accordingly. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet this required amount.

The total CPF withdrawal for the second or subsequent property will also be capped at 100% of the Valuation Limit, which is the lower of the purchase price or valuation of the property at the time of purchase if the remaining lease is at least 60 years.

How Much To Refund To CPF Upon The Sale of The Private Property?

If you have used your CPF savings to finance your private property, you will have to refund to your CPF:

  • The principal CPF amount which you have withdrawn for the private property;
  • The accrued interest which you would have earned if the CPF savings were not taken out from your CPF account.

≥ 55 years old

If you are 55 years old and above and have pledged your property to withdraw your Retirement Account savings in cash, you will need to refund the pledged amount on top of the principal CPF amount and the accrued interest.

The amount refunded will be used to set aside:

  • the Full Retirement Sum in your Retirement Account;
  • the current Medisave Minimum Sum in your Medisave Account if required (from 1 January 2016, the MMS will be removed).

After which, you can withdraw the balances in cash.

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