CPF Ordinary Account toward a home.
CPF usable for down payment
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Minimum cash (5%)
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OA left after down payment
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Your breakdown
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CPF can fund most of the down payment, but not all in cash terms
A first housing loan from a bank is capped at 75 percent loan-to-value, which leaves a 25 percent down payment. The rule that catches first-time buyers is the cash floor: at least 5 percent of the price must be paid in hard cash, and only the remaining 20 percent can come from your CPF Ordinary Account. So even with a healthy OA balance, you cannot escape writing a real cheque. This tool splits the down payment into the compulsory cash slice and the CPF-eligible slice, then checks whether your actual OA balance is enough to cover its part.
A $900,000 home with $120,000 in the Ordinary Account
Take a $900,000 property bought with a 75 percent bank loan, and an OA balance of $120,000. The 25 percent down payment is $225,000. Of that, 5 percent of the price, $45,000, must be cash. The other 20 percent, $180,000, is the most CPF can contribute. Your $120,000 OA is short of that, so it is fully used and there is a gap to bridge.
The OA is wiped out and still leaves $60,000 of the CPF-eligible portion to find in cash, on top of the compulsory $45,000. That is the trap: a six-figure OA can look like plenty until the 20 percent share on an expensive flat outruns it. The chart breaks the $225,000 down payment into its cash and CPF parts.
Valuation Limit, accrued interest, and the HDB loan difference
Two further limits sit beyond this calculation. CPF usage for the property is capped at the Valuation Limit, the lower of price or market value, and once you reach it, continued use up to the Withdrawal Limit requires you to have set aside the Basic Retirement Sum. More importantly for long-term planning, every dollar of CPF you use for the home accrues notional interest at the OA rate, and when you sell, you must refund the principal plus that accrued interest back into your CPF. That is not a penalty, it is your own retirement money being restored, but it means using CPF to the hilt can leave thin cash proceeds on a sale. An HDB loan changes the maths: it allows up to 75 percent LTV too under current rules, with no mandatory cash component, so buyers using an HDB loan can fund the entire down payment from OA if the balance allows. A common mistake is to drain the OA for the down payment and forget the accrued-interest refund waiting at the other end. Keeping some cash for the down payment, even when CPF could cover it, preserves flexibility later.
Can I use CPF to pay the monthly home loan as well?
Yes. Beyond the down payment, your OA can service the monthly instalments in full for most buyers, which is why many Singaporeans pay almost nothing in cash month to month. The same accrued-interest refund rule applies to instalments paid from CPF, so the more you route through CPF, the larger the eventual refund on a sale.
What if I am buying a second property?
The rules tighten. A second housing loan is capped at a lower LTV, often 45 percent, with a larger cash down payment, and CPF use is restricted until you have set aside the Basic Retirement Sum in your CPF. This tool models a first housing loan at 75 percent LTV, so a second purchase will need considerably more cash than the figures here suggest.