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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 –
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 –
Note –
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 –
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 –
Type of Loan |
Type of Home |
Limits Applicable |
Conditions regarding the use of CPF beyond VL |
HDB Loan |
New flat |
NIL (No limit) |
NIL. You can use your CPF until you repay the full loan. |
Resale HDB flat / DBSS flat |
Valuation Limit (VL) |
Below 55 years of age
Including the amount withdrawn for investment. For bank loan, you can only use your CPF up to WL. |
|
Bank Loan |
New HDB flat/ Resale HDB flat/ DBSS flat |
Valuation Limit (VL) and Withdrawal Limit (WL) |
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.
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.
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 -
HDB Flats Purchased with HDB Concessionary Loan -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 –
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.
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.
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 –
Factors |
HDB Concessionary Loan |
Bank Loan |
Eligibility |
Check with HDB on the eligibility |
Check with your bank on the eligibility criteria |
Cash down payment |
Not Applicable - No cash down payment required |
A minimum of 5 percent of the Valuation Limit |
Loan amount |
Up to 90 percent of purchase price |
Up to 80 percent of purchase price, subject to the terms and conditions |
Rate of Interest |
Fixed rate that is pegged at 0.1 percent above CPF Ordinary Account (OA) rate of interest |
Differs across banks and other financial institutions |
Capital repayment |
HDB allows for capital repayment of the outstanding loan. |
Subject to bank’s / financial institution’s approval and terms and conditions |
Adjustment to the monthly repayment amount |
HDB allows for adjustment to be made to the monthly repayment amount. |
Subject to bank’s / financial institution’s approval and terms and conditions |
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.
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.
Follow the same steps mentioned in the previous section to make changes to your monthly repayment arrangement on your 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.
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 –
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 –
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 –
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.
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