Using CPF for Your HDB — Rules and Limits

Buying a home is one of the biggest financial decisions you'll make. Your CPF Ordinary Account (OA) can be a powerful tool to fund your HDB flat — but there are rules and limits you need to understand.

Last updated: June 2026 · Based on CPF Board and HDB published rules.

What Can CPF OA Be Used For?

Your CPF Ordinary Account savings can be used for the following housing-related expenses:

• Down payment: Part of the initial payment when buying your HDB flat
• Monthly mortgage instalments: Regular payments towards your HDB housing loan or bank loan
• Stamp duty & legal fees:Buyer's Stamp Duty (BSD) and legal fees for the property purchase
• HDB upgrading costs: Selective En Bloc Redevelopment Scheme (SERS) and other HDB upgrading programmes

Note: Only your OA can be used for housing. SA and MA funds cannot be used for property purchases.

Valuation Limit & Withdrawal Limit

CPF has two important limits on how much you can withdraw for housing:

Valuation Limit (VL)

The Valuation Limit is the lower of:

• The purchase price of the property, or
• The valuation of the property at the time of purchase

You can freely use your CPF OA up to the Valuation Limit for your housing needs — no additional conditions apply.

Withdrawal Limit (WL)

The Withdrawal Limit is 120% of the Valuation Limit. This is the absolute maximum you can withdraw from your CPF OA for the property. However, to withdraw beyond the VL (up to the WL), you must meet the following condition:

Example: Valuation Limit & Withdrawal Limit

Down Payment Rules

New HDB flats (BTO / SBF / ROF)

• If taking an HDB loan: up to 90% LTV (Loan-to-Value). The remaining 10% can be paid from CPF OA or cash.
• If taking a bank loan: up to 75% LTV. The remaining 25% must be paid with at least 5% cash and up to 20% from CPF OA or cash.

Resale HDB flats

• Similar LTV limits apply. The Option Fee and deposit may require cash upfront, with CPF OA used for the remaining amounts.
• Cash Over Valuation (COV) — the amount above the flat's valuation — must be paid in cash and cannot be funded from CPF.

Using CPF for Monthly Mortgage

You can set up a CPF Housing Withdrawal to automatically pay your monthly mortgage instalments from your OA. This works for both HDB loans and bank loans.

• Automatic deduction: Once set up, CPF Board deducts the instalment amount from your OA each month
• Partial payment:If your OA balance is insufficient to cover the full instalment, CPF will deduct whatever is available and you'll need to pay the remainder in cash
• Application: Apply via the CPF Board website or at an HDB branch

Understanding Accrued Interest

When you use CPF for housing, the amount withdrawn accrues interest at 2.5% p.a. (the OA interest rate). This interest is not charged to you directly — but it must be refunded to your CPF when you sell the property.

Essentially, the accrued interest represents the returns you would have earned if the money had stayed in your OA. It ensures your retirement savings are not depleted by housing usage.

What Happens When You Sell?

When you sell your HDB flat (or private property), you are required to refund the CPF amount used for the property — plus accrued interest — back into your CPF OA.

Refund rules

• Full refund required: The total CPF used (principal + accrued interest) must be refunded to your OA
• Refund from sale proceeds: The refund is typically deducted from your sale proceeds automatically
• Shortfall:If sale proceeds are insufficient, the shortfall is waived — you don't need to top up from cash
• Next property: You can use the refunded CPF amount for your next property purchase

Source: CPF Board — Using CPF for Housing · Source: HDB — Buying a Flat

Tips for Managing CPF Housing Usage

• Monitor your accrued interest: Check your CPF statement regularly to see how much you owe
• Consider voluntary refunds: If you have spare cash, you can voluntarily refund CPF to reduce accrued interest
• Don't deplete your OA entirely: Keep some OA balance for emergencies and continued compound growth
• Plan for retirement: Heavy CPF usage for housing means less for retirement. Factor this into your planning