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Using CPF for Buying Public Residential Property

Long Term Planning For Using CPF for Public Residential Property

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

​The Public Housing Scheme (PHS) enables CPF members to use their CPF Ordinary Account savings to buy new or resale HDB flats.​

All CPF members (SC / SPR) who are eligible to buy a new or resale HDB flat are eligible to use their CPF savings under the Public Housing Scheme. You have to be insured under the Home Protection Scheme or mortgage insurance when you use CPF for the monthly instalment of your housing loan.

CPF can be used to:

  • finance part or all of the HDB purchase price;
  • service monthly housing loan instalments taken (HDB concessionary loan/bank loan) for the HDB flat;
  • pay the stamp duty, legal fees, flat upgrading cost and other HDB related cost.

However, you are not eligible to use your CPF savings under the Public Housing Scheme if you are:

  • buying an HDB flat with a remaining lease of < 30 years
  • buying an HDB flat with a remaining lease of < 60 years but at least 30 years and your age plus the remaining lease of the HDB flat is < 80 years. This is to ensure that the flat will last the owner until he/she is at least 80 years old, which is roughly the average life span of Singaporeans at birth.

Is There A Limit For CPF Public Housing Scheme (PHS)?

CPF is essentially for your retirement. The more you use for the property, the less you may have for retirement. To ensure you have enough savings for your retirement, there is a limit on the amount of CPF savings you can use for your housing.

  • Valuation Limit (VL) – the purchase price or the value of the HDB flat at the time of purchase, whichever is lower.
  • Withdrawal Limit (WL) – 120% of the VL. This is the maximum amount of CPF you can use for the flat.
Loan FromType of HDBApplicable Limits
HDBNew HDB FlatYou can use your CPF until the loan is fully paid
Resale HDB FlatValuation Limit
DBSS FlatValuation Limit
BankNew HDB FlatValuation Limit and Withdrawal Limit
Resale HDB FlatValuation Limit and Withdrawal Limit
DBSS FlatValuation Limit and Withdrawal Limit

Conditions to use CPF beyond Valuation Limit

  • < 55 years old
    To set aside the current Basic Retirement Sum in your Special Account (including the amount withdrawn for investment) and Ordinary Account.
  • ≥ 55 years old
    To meet the Basic Retirement Sum in your Retirement Account, Special Account (including the amount withdrawn for investment) and Ordinary Account.

For bank loan, you can only use your CPF up to Withdrawal Limit.

  • The amount of CPF you can use is lower if you are buying an HDB resale flat with a remaining lease of fewer than 60 years but at least 30 years.

You may refer to the table below to calculate the maximum amount of CPF that can be withdrawn. Use this table to determine the percentage to be applied to the lower of the purchase price or the value of the property at the time of purchase:

HDB Flats With Remaining Lease of Less Than 60 Years But At Least 30 Years

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

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

If you have used your CPF savings to finance your HDB flat, you will have to refund to your CPF:

  • the principal CPF amount which you have withdrawn for the HDB flat;
  • 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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