SmartProp.sg
๐Ÿ’ฐ

CPF Housing Rules

How to use your CPF Ordinary Account for property in Singapore

Updated March 2026 ยท Singapore regulations

Which CPF Account?

Only your CPF Ordinary Account (OA) can be used for property purchases. Your Special Account (SA) and Medisave Account (MA) cannot be used for housing.

What CPF OA Can Pay ForNotes
DownpaymentMin 5% cash required for bank loans; CPF can cover remaining portion
Monthly mortgage installmentsHDB loan or bank loan repayments
Legal & conveyancing feesFor HDB resale and private property
Buyer's Stamp DutyBSD only; ABSD typically paid in cash
HDB resale levy (partial)If applicable for second subsidised flat

CPF Limits for Private Property

For private property, CPF usage is subject to two limits:

LimitMeaning
Valuation Limit (VL)The lower of purchase price or market valuation. Your CPF usage is capped at 100% of VL.
Withdrawal Limit (WL)You can withdraw up to 120% of VL over the full loan tenure โ€” but only after setting aside the Basic Retirement Sum (BRS) once VL is reached.
Example: You buy a condo at $1.2M (valuation: $1.1M). VL = $1.1M. You can use CPF freely up to $1.1M. Above that, you must have set aside BRS, and can go up to WL of $1.32M total.

Lease Coverage Rule

CPF can only be used if the flat's remaining lease covers the youngest buyer to at least age 95. For older properties, usage may be pro-rated or disallowed entirely.

Remaining Lease ScenarioCPF Usage
โ‰ฅ 20 years AND covers youngest buyer to age 95Full CPF allowed up to VL/WL
Covers youngest buyer to 95 but less than full property lifeCPF pro-rated proportionally
< 20 years remainingNo CPF allowed at all

Accrued Interest โ€” The Hidden Cost

When you sell your property, you must refund to your CPF all amounts withdrawn plus 2.5% per annum accrued interest. This is not a penalty โ€” it is restoring what your CPF would have earned if the money had stayed invested.

Important: On a property held for 20 years where $300,000 CPF OA was used, the accrued interest can add another $200,000+ to what must be returned to CPF at sale. This significantly reduces your cash proceeds โ€” always model this before deciding to sell.
CPF AccountInterest Rate (2026)
Ordinary Account (OA)2.5% per annum
Special Account (SA)4% per annum
Medisave Account (MA)4% per annum
Extra interest on first $60,000 combined balance+1% per annum (max $20K extra from OA)

Age 55+ Special Rules

After age 55, a Retirement Account (RA) is created from your SA and OA. Before using OA for property, you must first set aside the Full Retirement Sum (FRS) in your RA. If FRS is already met, there is no further restriction.

FRS for 2026: approximately $213,000 (updated annually by CPF Board). Check cpf.gov.sg for the latest figures.

Calculate your costs

Use our free tools to run the numbers for your situation.

CPF Housing Rules Singapore 2026 | How to Use CPF for Property | SmartProp.sg