• Public Housing Scheme

    PHS or the Public Housing Scheme allows you to use your CPF savings in the Ordinary Account (OA) for the purchase of your new flat or resale sale flat from HDB (Housing and Development Board).

    Public Housing Scheme – How you can use your savings under this scheme

    You can purchase your HDB flat under the PHS scheme in the following ways:

    • You can use your OA savings for the purchase of the whole house or pay a part of the purchase price.
    • You can use your OA savings for the payment of monthly instalments on the loan that you take for the purchase of your HDB flat.
    • You can use your OA savings to make payments on any and all costs relating to the purchase of your HDB flat such as legal fees, stamp duty, upgrading your home etc.

    Public Housing Scheme – Are you eligible for this scheme?

    If you are eligible to buy a new/resale HDB flat, then you automatically become eligible to use your OA savings under this scheme.

    However, you are NOT eligible for this scheme if under the following circumstances:

    • If the HDB flat you are purchasing has a remaining lease of under 30 years.
    • If the HDB flat you are purchasing has a remaining lease of under 60 years but a minimum of 30 years AND your age + the remaining lease is under 80 years.

    Note – You can still use your CPF savings for the purchase of a new HDB flat that has a remaining lease of under 60 years but minimum 30 years. However, the amount eligible to be used for this purchase will be lower than what you can otherwise use if the remaining lease is longer.

    How much savings from your CPF Account you can use for the purchase of your home under the Public Housing Scheme

    The CPF Board has placed housing limit on the amount of savings that you can use from your OA account. This is primarily done to secure your savings for when you retire.

    The housing limits that are placed on CPF savings to be used for the purchase of your HDB flat under the PHS scheme depends on the following factors:

    • If you are purchasing a new or a resale HDB flat.
    • If you are purchasing this flat using a HDB concessionary loan or a bank loan.

    Depending on what your response is, there are 2 limits applicable:

    • VL or Valuation Limit – You can use your CPF savings up to the purchase price or the value of your HDB flat at the time of your purchase, whichever of the two is LOWER.
    • WL or Withdrawal Limit – The maximum amount of your CPF savings that can be used for the purchase of your HDB flat is 120% of VL.

    Table 1: CPF Limits applicable on purchase of HDB flats with minimum 60 years lease remaining:

    Loan Type Type of Flat Limits Applied Conditions in case of CPF savings used beyond Valuation Limit or VL
    HDB Loan New HDB flat No limit applicable
    • No conditions applied.
    • Use CPF savings until the full loan is repaid.
    • Resale HDB flat
    • DBSS flat
    Valuation Limit (VL)
    • Below 55 years: Condition to set aside the current BRS or Basic Retirement Sum in your SA or Special Account + OA or Ordinary Account.
    • 55 years onwards: Condition to meet the BRS in your RA or Retirement Account+ SA + OA.
    Important: For a bank loan, you can use your CPF savings up to the Withdrawal Limit (WL).
    Bank Loan
    • New HDB flat
    • Resale HDB flat
    • DBSS flat
    Valuation Limit (VL) and Withdrawal Limit (WL)

    Note:

    • The savings in your SA include any amount you have withdrawn for investment.
    • The current BRS if S$80,500.

    Checking your eligibility to use your CPF savings to purchase a property with remaining lease under 60 years:

    If you want to know if you are eligible to use your CPF savings + the maximum amount from your savings that you can use for the purchase of a property with remaining lease under 60 years, you can use the “Property with Less Than 60 Years Lease Calculator”.

    Using CPF Savings for the purchase of more than 1 property:

    You can use your CPF savings for the purchase of more than 1 property. However, the Multiple Property Rule restrictions will be applicable on the use of CPF.

    Table 2: Multiple Property Rule restrictions on co-owners purchasing a property

     Property Purchase Member 1 Member 2
    1st Property bought before 1-7-2006 Using CPF savings
    • Not the owner OR
    • Is the owner but is not using CPF savings
    2nd Property bought in January, 2007 Using CPF savings Using CPF savings
    Withdrawal Limit (WL) for Member under 2nd Property 100% Valuation Limit (VL) 126% of VL
    Withdrawal Limit for 2nd Property 126% of VL
    Setting aside MSCC for 2nd Property Yes Not Applicable

    Should you use your CPF savings for financing your HDB flat?

    It is not absolutely necessary for you to use the savings in your OA to finance the purchase of your HDB flat. It is simply an alternative to using cash. It is a good option to use your CPF savings for the purchase of your home if you are unable to finance it using other means.

    Your OA savings primarily exists for your retirement payouts. Therefore, the more amount from your savings you use for the purchase of your property, the lesser savings you will have for other purposes including when you retire, paying for your children’s tertiary education, insurance etc.

    Refunding your CPF Account on the sale of your HDB flat

    You will have to refund the amount of savings used from your CPF account for the purchase of your HDB flat in the following ways:

    • Principal Amount (P) withdrawn from your CPF account for the purchase of your HDB flat.
    • Accrued Interest (I) which your savings would have earned if they were not withdrawn from your CPF account for the purchase of your HDB flat.
    • 55 years old onwards: If you have pledged your HDB flat to withdraw cash from your RA, you have to refund P + I + Pledged Amount into your CPF account to meet the FRS or Full Retirement Sum in your RA. If there is any balance remaining, the housing refund will be made to you in cash.

    Applying to use CPF savings to repay HDB Concessionary Loan/Bank Loan

    Using CPF to repay HDB Concessionary Loan:

    • Visit the HDB office and fill out the withdrawal form – “HPS/9”.
    • HDB will then forward your application form to the CPF Board.
    • Upon receiving the receipt, your application will take 5 business days to be processed.

    Note – If you will be using your CPF savings to repay your HDB Concessionary Loan, you must be insured under the Home Protection Scheme (HPS).

    Using CPF to repay bank loan:

    • Download the form, “Application for to Use CPF Savings to purchase HDB Flat Financed with Bank Loan (HBL/1). Complete this form by seeking the help of your lawyer.
    • Mail the completed form to the CPF Board a minimum of 15 business days before your payment due date.

    Your CPF savings will be released for the purchase of your HDB flat after you have met the following conditions:

    • You make a down payment of 5% of the VL AND
    • You pay the balance amount of the purchase price of your HDB flat that is not covered by your CPF savings and your housing loan.

    Applying to CPF to repay bank loan:

    • Online – myCPF:
      • Login to the CPF website using your SingPass.
      • Go to “My Requests-Property” and submit an application online.
      • Upon receipt, it will take the CPF Board 5 business days to process your application.
    • Mail:
      • Download the form, “Application form to Commence Monthly CPF Deduction for Housing Loan of HDB Flat Financed with Bank Loan (HBL/3). Complete this form with assistance from your financier.
      • Mail it to the CPF Board a minimum of 7 business days before the next deduction date for your monthly instalment which occurs from 10th to 13th of every month.

    Note – If you will be using your CPF savings to repay your bank loan, you must be insured under the Home Protection Scheme (HPS).

    Using your CPF savings for the purchase of your HDB flat can reduce the financial stress of buying your own home. However, it is wise to not exhaust all the savings in your OA for this purchase because it can cause financial duress during your retirement. The more savings you use for your flat purchase now, the lesser amount you will have when you finally decide to retire and will have no other source of income. Additionally, as you can use your CPF savings for more than one purpose, you can spread out your OA savings for other making payments for necessities including your child’s local education, insurance for you and your family and so on.

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