What is a Public Housing Scheme or PHS?

PHS allows you to use your CPF OA (Ordinary Account) savings to purchase a HDB flat, both new as well as resale. You can use this scheme for your purchase in the following ways –

• Finance the complete purchase price or a part of it
• Service your monthly housing loan instalments that was taken to purchase the HDB flat
• Pay related costs of your HDB flat including stamp duty, legal fees, other costs such as flat upgrading cost to name a few

Who is eligible to use their CPF savings for PHS?

All CPF members’ eligible to purchase a new or resale HDB flat are allowed to use their CPF Savings under the Public Housing Scheme.

However, the following are not eligible to use their CPF Savings for PHS –

• If the remaining lease on your HDB flat is less than 30 years
• If the remaining lease on your HDB flat is less than 60 years but at least 30 years + your age and the remaining lease on your HDB flat is lesser than 80 years

Note –

• Read the Terms and Conditions carefully regarding your CPF to purchase a HDB flat with a HDB Concessionary Loan.
• Read the Terms and Conditions carefully regarding your CPF to purchase a HDB flat with a bank loan. This will include any housing loan from a bank or a financial institution.

How much CPF savings can be used for PHS?

There are housing limits placed on the amount of your CPF savings that you can use in order to ensure that you have sufficient CPF savings when you retire.

How much of your CPF savings you can use under the Public Housing Scheme depends on the following –

• Whether you are purchasing a new or a resale HDB flat
• Whether you are financing the purchase of your HDB flat using a HDB concessionary Loan or a bank loan

Considering the aforementioned factors, the following limits will be applicable –

VL or Valuation Limit –

This refers to the value of the HDB flat at the time of purchase or its purchase price, depending on which is lower.

WL or Withdrawal Limit

This refers to 120 percent of the Valuation Limit (VL). The WL is the maximum amount of CPF savings that can be used for the purchase of a HDB flat.

Table - If you are purchasing a HDB flat with a remaining lease of at least 60 years, find more details on the conditions of using your CPF savings for the purchase of your HDB flat –

The amount of CPF that you can use is lower if you are purchasing a HDB flat with a remaining lease of at least 30 years but below 60 years.

Can CPF Savings be used for the purchase of more than one property?

Yes. You are allowed to use your CPF Savings for the purchase of more than one property, however there are some restrictions as per the Multiple Property Rule that you are advised to read before you decide to use your CPF Savings on multiple properties.

On selling your HDB Flat, what will happen to your sale proceeds?

The sale proceeds derived from the sale of your HDB flat will be used to pay off the loan on your current HDB flat.

They will be done so in the following order -

• Your outstanding loan amount
• Your HDB resale levy, if applicable
• Your required CPF fund

• Your outstanding loan amount
• Your required CPF fund
• Your HDB resale levy, if applicable

Do you have to refund any amount back into your CPF account upon the sale of your HDB flat? If yes, how much do you need to refund?

You will have to refund some amount back into your CPF account upon the sale of your HDB flat if you have used your CPF savings to finance the purchase of your HDB flat.

The following is what you will need to refund into your CPF account –

• The principal amount (P) that you have withdrawn for the purchase of your HDB flat
• The accrued interest (I) that you would have earned in case the savings were not taken from your CPF account

If you are 55 years of age or above and you have pledged your property in order to withdraw your RA or Retirement Account savings in cash, you will additionally need to refund this pledged amount over and above the principal amount (P) and accrued interest (I). This refunded amount into your CPF account will further be used to meet the full retirement sum in your RA. After this, any remaining balance from your housing refunds will be repaid to you in cash.

Is it viable to use your CPF savings to purchase a HDB flat?

If you are looking for an alternative method of purchasing a HDB flat using cash, you can use your CPF savings instead. However, it is advisable to not use all your CPF funds from your Ordinary Account (OA) for the purchase of your HDB flat. This because the main objective of a CPF account is to serve your during your retirement period, therefore the more you use it to finance your HDB flat, the lesser you have for your retirement.

How to choose between a Bank Loan and a HDB Concessionary Loan?

There are several factors that you need to take into consideration before you make your decision regarding where to apply for the loan for your HDB flat. Some of the important factors are discussed below –

How to determine a loan amount that is suitable, the repayment tenure and amount that will be within my financial needs and requirements?

The CPF Government website provides the “Our First Home Loan Calculator” which will give you an estimate for a price that you can afford for your home taking into consideration various factors including your gross household income / expenses with the repayment period and the repayment amount.

How to apply for your CPF to be used for the repayment for your HDB Concessionary Loan?

You will first need to go down to the HDB office and fill in the details of the CPF Withdrawal form (HPS / 9). After the completion and submission of this form, HDB will then forward this form to the CPF Board. Please note that it will take 5 working days to process your application. Additionally, in order to use your CPF for the purchase of a HDB flat, you will need to be insured under the Home Protection Scheme.

Once the application for using CPF savings for the purchase of a HDB flat has been approved, can changes be made to the monthly repayment arrangement?

Follow the same steps mentioned in the previous section to make changes to your monthly repayment arrangement on your HDB Concessionary Loan.

How to make a partial or a full repayment on the HDB Concessionary Loan?

In order to make complete repayment on your HDB Concessionary Loan or for the full redemption of your HDB Loan, you will need to ensure that you have sufficient CPF funds in your Ordinary Account (OA) which are subject to the CPF Housing Limits.

How to apply to use your CPF funds for the purchase of a HDB flat that is financed with a bank loan?

You will need to download and complete the HBL / 1 form which is the application form to use your CPF Savings for the purchase of a HDB flat with a bank loan. You will then need to mail this form to the CPF Board at least 15 days before the due date for your payment.

The CPF Board will release your CPF savings after you have paid the following –

• The required down payment which is at least % of the valuation limit.
• The balance of the purchase price after considering your CPF lump sum and the housing loan amount

How to apply for your CPF to be used for the repayment of your bank loan?

If you prefer the online method to apply for your CPF to be used for the repayment of your bank loan, follow the simple steps mentioned below –

• Log into your CPF account using your SingPass
• Submit an Online Application through “My Request – Property”
• If the application is for the partial capital repayment, your application will be processed within 3 business days. If the application is for full capital repayment, your application will be processed within 5 business days.
  
  

If you prefer using mail to apply for your CPF to be used for the repayment of your bank loan, follow the simple steps mentioned below –

• You will need to first ensure that you have sufficient funds in your CPF Ordinary Account (OA) subject to the housing limits for your capital repayment.
• Download the HBL / 4 form which is the application form to use your CPF Savings for the partial or full repayment of your Housing Loan. Complete filling in all the details.
• Mail this completed application form to the CPF Board at least 7 days prior to the expected due date for the payment.

If you prefer paying with cash for your CPF to be used for the repayment of your bank loan, you will need to speak to your financier on the procedures to follow.