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Guide to using CPF savings with a HDB concessionary housing loan

toa payoh central
toa payoh central

Under the Public Housing Scheme (PHS), CPF members can use their Ordinary Account (OA) savings to buy new or resale HDB flats.

CPF members who are eligible to buy a new or resale HDB flat can use their CPF savings under the PHS unless they are buying:

  • a HDB flat with a balance lease of less than 30 years

  • a HDB flat with a balance lease of between 30 and 60 years but sum of the balance lease and the buyers’ average age is less than 80 years

The CPF OA savings can be used to:

  • Finance all or part of the purchase price

  • Pay the stamp duty, legal fees and other related costs such as flat upgrading

  • Service monthly housing loan instalments

How to apply

To use your CPF to repay your HDB concessionary loan:

  • Complete CPF withdrawal form (HPS/9) at HDB office

  • The form will be forwarded to CPF Board and processed within 5 workings days upon receipt

CPF members using CPF savings to pay monthly housing loan instalments for HDB flats must be insured under the Home Protection Scheme (HPS). The HPS is a mortgage-reducing insurance that protects members and their families against losing their homes in the event of death or permanent incapacity before their housing loans are paid up.

Valuation and Withdrawal limit

There are limits to the amount of CPF savings that can be used depending on:

  • Whether you are buying a new or resale HDB flat

  • Whether you are taking a HDB concessionary loan or bank loan

The limits that may apply are:

  • Valuation Limit (VL) – the lower of the purchase price or market value at the time of purchase

  • Withdrawal Limit (WL) – the maximum amount of CPF savings that can be used, capped at 120% of the VL

Buyers of new HDB flats with a HDB concessionary loan can use their CPF OA savings until the loan is fully paid

Loan From

Type of Home

Applicable Limits

Conditions to use CPF beyond VL


New flat

No limit

You can use your CPF until the loan is fully paid.

Resale HDB flat/DBSS flat


Buyers below 55 years old

Buyers 55 years old and above

including the amount withdrawn for investment.

For bank loan, you can only use your CPF up to WL.

Refund to CPF

Buyers who have used CPF savings to finance a HDB flat purchase will need to make a refund to their CPF after the sale of the flat.

The CPF refund includes:

  • the principal amount withdrawn from CPF

  • the accrued interest computed monthly at compounded CPF rate of 2.5% per annum

If the sales proceeds after paying the outstanding HDB loan and HDB resale levy is not enough for a full CPF refund, you do not need to top up the shortfall in cash, provided the flat is sold at market value.

Source: HDB, CPF, The Edge Property

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