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CPF for Housing Singapore — Complete Guide

Last reviewed: · Age 95 rule effective 10 August 2024.

Educational guide — not financial or retirement advice.For your specific CPF position, check your statements at cpf.gov.sg.

1. What CPF can be used for housing?

Only the CPF Ordinary Account (OA) can be used for housing. Special Account, Medisave, and Retirement Account funds cannot. OA can be applied to:

  • Downpayment for an HDB or private property (subject to LTV / CPF use rules)
  • Monthly mortgage instalment (in lieu of cash)
  • Buyer's Stamp Duty (BSD)
  • Legal fees for conveyancing
  • HDB Home Protection Scheme (HPS) insurance premium
  • Pledging as security to support an HDB or bank housing loan

CPF OA earns interest at 2.5% per annum (floor rate, reviewed quarterly). When used for housing, the OA balance decreases — but the "notional" interest you would have earned still accumulates as accrued interest, which you must refund on sale.

2. Valuation Limit and Withdrawal Limit

CPF Board imposes two ceilings on how much OA can be used over the life of the housing loan:

  • Valuation Limit (VL) — the lower of the purchase price or the property valuation at the time of purchase. CPF use up to VL is freely allowed.
  • Withdrawal Limit (WL) — currently 120% of VL. To continue using CPF between VL and WL, you must have set aside the Basic Retirement Sum (BRS) in your CPF.

See the dedicated Withdrawal Limit guide for the mechanics and BRS requirement.

3. Accrued interest — the "forgotten cost"

Every dollar of CPF OA used for housing is treated as a withdrawal from your retirement savings. On sale of the property, you must refund:

  • The principal CPF used, plus
  • The accrued interest at 2.5% per annum, compounded

For a borrower who used $200,000 of CPF over 10 years, the accrued interest is roughly $56,000 — and the total CPF refund on sale is $256,000. If sale proceeds are insufficient (after paying off outstanding loan), the shortfall is waived for new home purchases but the AI is real otherwise.

🧮 Estimate yours with the CPF Accrued Interest calculator.

4. The age 95 rule (Budget 2024)

From 10 August 2024, CPF usage for housing loans is restricted to ensure that retirement adequacy is preserved:

  • Borrower's age + loan tenure ≤ 95 years (for HDB loans).
  • The loan tenure should ideally end by the youngest buyer's age 65 to qualify for the full CPF use and LTV.
  • Older buyers face reduced LTV (e.g. 55% instead of 75%) and reduced Withdrawal Limits.

See the dedicated Age 95 Rule guide.

5. CPF refund on sale

On sale of the property, the CPF refund (principal + accrued interest) is computed and paid back into the seller's CPF OA before any cash proceeds are released. The order of priority is:

  1. Outstanding mortgage to bank / HDB
  2. CPF refund (principal + accrued interest) to seller's OA
  3. Cash to seller (the residual)

If the sale price is low (property has depreciated) or the loan is still large, the cash to the seller may be very small or zero. See the CPF Refund on Sale guide for worked scenarios.

6. Further reading

Frequently asked questions

Can I use CPF to buy a property in Singapore?▾

Yes. Funds in your CPF Ordinary Account (OA) can be used towards: (a) the downpayment (in part), (b) the monthly mortgage instalment, (c) BSD and legal fees, and (d) home insurance premiums (for HDB Home Protection Scheme). You may also pledge CPF savings as security for the loan in some cases. Special Account, Medisave, and Retirement Account funds cannot be used for housing.

What is the Valuation Limit (VL)?▾

The Valuation Limit is the lower of the purchase price or the valuation at the time of purchase. CPF use is capped at the VL initially. Once you reach the VL, you can apply to continue CPF use up to the Withdrawal Limit (currently 120% of VL), provided you set aside the Basic Retirement Sum (BRS) in your CPF.

What is the Withdrawal Limit (WL)?▾

The Withdrawal Limit is the absolute maximum CPF that can be used for a property — currently 120% of VL for both HDB and private property. CPF use up to the Valuation Limit (VL) is freely allowed; use between VL and WL requires the borrower to have the Basic Retirement Sum (BRS) set aside in their CPF. Once cumulative CPF use reaches the WL, no further CPF can be applied to that property regardless of OA balance.

What is CPF accrued interest?▾

When you use CPF OA for housing, you are 'borrowing' from your future retirement. On sale of the property, you must refund the principal CPF used PLUS the interest it would have earned at the OA rate (2.5% per annum, compounded). This 'accrued interest' (AI) is mandatory and is paid back into your OA.

What is the 95-year rule from Budget 2024?▾

From 10 August 2024, CPF usage for new home loans is limited so that the loan tenure ends no later than the youngest buyer turning age 65, AND the borrower's age + loan tenure does not exceed 95. The aim is to ensure CPF is used proportionately to the homebuyer's retirement adequacy. Older buyers face reduced LTV and Withdrawal Limits.