CPF to Purchase Property? What You Should Know

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DOWNLOAD Guide on using CPF for buying private properties

3 Key Factors You Should Know When Using Your CPF to Purchase Property

Using your CPF funds – What can you use it for?

When you buy property, you don’t just hand over a million dollars to the cashier and then wait for the change (if any).
You will actually be paying for a series of things at various junctures, and will need to know before hand which of these items you can use your CPF OA money to pay for.
CPF OA funds can be used to pay for the following:

Downpayment

Your CPF savings can be put towards your downpayment. Do note, however, that you might still required to put up some cash.

HDB flat buyers taking an HDB loan: 10% downpayment, which can be completely paid with CPF savings.
HDB flat buyers taking out a bank loan: 20% downpayment, of which at least 5% must be paid in cash.
Private under-construction development: 20% deposit, of which at least 5% must be paid in cash.
HDB resale flat: Deposit of up to $5,000 which must be paid in cash.
Private resale property – Deposit of at least 5%, including an option fee of at least 1% which must be paid in cash

Private Properties Scheme

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 own occupation or investment.

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CPF Board – Property with Less Than 60 Years Lease Calculator

This calculator helps you to determine your eligibility and the maximum amount of CPF that you can use to buy a property with remaining lease of less than 60 years, but at least 30 years.
Please note that the calculator is applicable if the date of purchase is on or after 1 July 2013 for HDB flats, and from 19 July 2005 for private properties.

Guide to Using CPF for Private Residential Properties

Under the Central Provident Fund Board’s Private Properties Scheme (PPS), you can use your savings in CPF Ordinary Account (OA) to buy or build private residential property for occupation or investment.
It can be used for the following:

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

How much CPF can I use for my house?

Thinking of financing your new home with your CPF savings? The amount of Ordinary Account (OA) savings you can use is subject to the CPF housing limits, namely the Valuation Limit (VL) and Withdrawal Limit (WL). These limits are put in place to ensure you have enough savings for your retirement years.

Here’s how the VL and WL will apply to you depending on the type of loan you are taking and the property you are buying:
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Buying a Home

What do you need to pay for?

Buying a home is probably the biggest financial commitment for most Singaporeans. It is a long-term commitment which should be carefully planned.
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