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CPF Housing Withdrawal Limit

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The two limits explained

  • Valuation Limit (VL) = lower of purchase price or valuation at purchase.
  • Withdrawal Limit (WL) = 120% of VL (general rule for both HDB and private).

CPF use up to VL is unrestricted (subject to LTV and the buyer's OA balance). CPF use between VL and WL requires the borrower to meet the Basic Retirement Sum (BRS) set-aside.

Worked example — $1 million property

Purchase price = valuation = $1,000,000. VL = $1,000,000. WL = $1,200,000.

Buyer takes a 75% LTV bank loan = $750,000. Downpayment = $250,000 (5% cash + 20% CPF + 0%). Tenure 25 years at stress rate 4%.

  • Year 0 — CPF used for downpayment + BSD + legal: ~$245,000
  • Years 1–25 — monthly CPF used for instalment: ~$3,950/month × 12 × 25 = ~$1,185,000 over the tenure (principal portion goes to loan)
  • Cumulative CPF use hits the VL ($1M) somewhere around year 16, and the WL ($1.2M) around year 21.
  • To continue CPF use past the VL (between years 16 and 21), the borrower must have the Basic Retirement Sum in their Retirement Account.
  • If borrower does not meet BRS, all CPF use stops at the VL (~year 16) and the remaining ~9 years of instalments must be paid in cash.
  • Once cumulative use reaches the WL (~year 21), no further CPF can be used even if BRS is met — final ~4 years of instalments in cash.

When CPF cannot keep up

For high-value properties (above ~$2M) or long tenures, CPF often runs out before the loan is paid off. Borrowers should plan cash buffers for:

  • The years after CPF OA is exhausted (depends on OA balance and contributions)
  • The years after the Withdrawal Limit is reached (depends on property value and CPF use pattern)
  • Property tax, conservancy charges, and HPS / insurance — paid in cash if CPF is exhausted

Related guides

Frequently asked questions

What is the CPF Valuation Limit (VL)?▾

The Valuation Limit is the lower of the property's purchase price or the market valuation at the time of purchase. It is fixed for the duration of the loan and represents the baseline CPF use cap. Once the cumulative CPF used (downpayment + monthly instalments + interest deducted from OA) reaches the VL, the borrower must satisfy additional conditions to continue using CPF.

What is the Withdrawal Limit (WL)?▾

The Withdrawal Limit is the absolute maximum CPF that can be used for the property — currently 120% of the VL for both HDB and private property. To use CPF between VL and WL, the borrower must have set aside the Basic Retirement Sum (BRS) in their CPF.

What is the Basic Retirement Sum (BRS)?▾

The BRS is the minimum amount you need to set aside in your CPF Retirement Account at age 55 to receive lifelong monthly payouts from age 65 (under CPF LIFE). The BRS is revised annually. To use CPF beyond the VL, the BRS must be in the borrower's Retirement Account (or projected to be there with current OA + SA balance).

What happens when I hit the Withdrawal Limit?▾

Once cumulative CPF use reaches the WL, no further CPF can be applied to that property — even if your OA has more balance. The borrower must continue paying the mortgage from cash, or refinance the loan with a smaller principal. Property tax, insurance, and other ongoing costs still must be paid (in cash if CPF is no longer usable).

Do the VL and WL include accrued interest?▾

The cumulative CPF withdrawn includes only the principal CPF used (downpayment + monthly instalments). Accrued interest is computed separately and is the seller's obligation on resale — it does not count towards the VL or WL during ownership.