Buying Homes with CPF | Ways to Use Your CPF Funds in Singapore

Home Loans | Loans
by Priyadarshini 29 April 2023

You don’t need to wait your entire life to use the money in your CPF account. The first time you’ll use your CPF funds is usually to purchase a property. You can use CPF funds to purchase any type of home in Singapore, HDB or private, resale or under construction.  But you must understand when and how you can use this money. In this blog, we tell you about buying homes with CPF Singapore.

What can you do with your CPF savings if you want to buy a house?

When purchasing real estate, you do not just hand over a million dollars to the cashier and wait for the change (if any). You will be paying for a number of goods at various points. And you will need to know ahead of time which of these items you can use your CPF OA money to pay for.

Use your funds from the CPF OA in the following ways:

Buying Homes with CPF Singapore


Use your CPF funds to help pay for your down payment. However, keep in mind that you will still need to put up some cash. Buyers of HDB flats who take out an HDB loan can make a 15% downpayment. And you can make it fully with CPF funds. If one of the applicants is under 30 years old at the time of application, you may also be eligible for the Staggered Downpayment Scheme. In case you are buying an HDB flat, those who take out a bank loan must make a 25% downpayment, of which at least 5% must be paid in cash.

For all private under-construction development: a 20% deposit, at least 5% of which you have to pay in cash. For an HDB resale flat, a cash deposit of up to $5,000 is required. And for private resale property, a deposit of at least 5% is what you have to pay. As well as you have to pay an option fee of at least 1% in cash.

Amount of the purchase price not covered by the mortgage

After you’ve made your downpayment, you can utilize a mix of cash and/or CPF funds to pay for the remainder of the purchase price (if any) that your housing loan does not cover. This money will be paid to the seller in a lump sum upon completion or, in the event of a BTO or unfinished property, whenever it becomes due.

Repayment of a Mortgage

Your CPF OA funds can also be utilized to pay down your home loan. If you have depleted your account during the initial phases of your property purchase. But continue to receive CPF contributions from your work on a regular basis, these contributions can be utilized to make your monthly home loan repayments. This is true for both HDB and bank loans.

Stamp Duty and Legal Fees

Stamp duty, legal costs, and other administrative fees can all be paid with CPF OA funds. Your lawyer or HDB will demand that you pay these fees. Please keep in mind that this is a reimbursement program, which means you must have the cash up front before CPF would refund you.

Fees for the Home Protection Scheme

Buyers of HDB flats who do not have life insurance that covers their outstanding home loans must be protected under the Home Protection Scheme (HPS). It protects you and your family from losing your apartment if you die. Or are diagnosed with a terminal illness, or become totally and permanently incapacitated. Your CPF OA money can be used to pay your annual HPS premiums and buying homes with CPF Singapore. 

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buying homes with CPF funds
CPF funds in Singapore
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