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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 to finance it. This ruling is 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.
You can use CPF 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 if you are buying an HDB flat 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 flat’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 CPF Public Housing Scheme (PHS)?
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 the CPF Housing Withdrawal Limits Calculator to estimate when you will reach the CPF Housing Withdrawal Limits on the use of CPF for housing.
This calculator is applicable for:
- Properties bought before 10 May 2019 with a remaining lease of at least 60 years.
- Properties bought on or after 10 May 2019 where the remaining lease covers the youngest owner using CPF to at least 95 years old.
The CPF Board will determine the remaining lease and age at the point of purchase.
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.
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 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;
After which, any balance will be paid to you in cash within one week from the time the CPF board refunds the balance to your CPF account.