CPF Money

Use CPF money to buy property? For Singaporean and Singapore Permanent Resident(SPR), money in your CPF Ordinary Account can be applicable for using to finance your residential property. According to CPF board, there are Public Housing Scheme and Private Housing Scheme, respectively ruling the CPF members for buying the public and private properties in Singapore.

When comes to buying private property, eligible buyers can use your CPF Ordinary Account (OA) savings to buy or build private residential property for occupation or investment.

What can I use CPF Money to buy private property?

It can be used to:

  • pay the purchase price of the private property;
  • repay the housing loan in part or whole and/or to service the monthly housing loan instalments taken to buy the private property;
  • repay the construction loan in part or whole and/or to service the monthly construction loan instalments taken to buy land and/or to construct a house on that land; and
  • pay the stamp duty, legal costs, survey fees and other related cost incurred in the private property purchase, refinancing and/or construction of the house.

However, you are not eligible to do so if

  • you are buying a private property with a remaining lease of less than 30 years;
  • you are buying a private property with a remaining lease of less than 60 but at least 30 years and your age plus the remaining lease of the private property is less than 80 years;
  • you are a single person buying a private property with a non-related single and you have used CPF for an existing property; or
  • you are a married person buying a private property with a non-related single.

How much CPF savings can I use?

To ensure you have enough CPF savings for your retirement years, there are housing limits on the amount of CPF savings you can use to buy a private property.

Valuation Limit (VL) is the purchase price or the value of the private property at the time of purchase, whichever is lower.

Withdrawal Limit (WL) is 120% of the VL. This is the maximum amount of CPF you can use for the private property.

To continue using your CPF beyond VL, up to WL, you need to meet the following requirements:

  • Below 55 years old: To set aside the current Basic Retirement Sum (BRS) in your Special Account (SA), including the amount withdrawn for investment, and Ordinary Account (OA).
  • 55 years old and above: To meet the BRS in your Retirement Account (RA), SA (including the amount withdrawn for investment) and OA.

What will happen to my sale proceeds upon the sale of my private property?

The sale proceeds will be used to pay off the outstanding housing loan taken to buy the private property and the required CPF refund in the order agreed among the owners, financiers and the Board.

How much do I need to refund to my CPF upon the sale of my private property?

If you have used your CPF savings to finance your private property, you will have to refund to your CPF:

  • the principal CPF amount (P) which you have withdrawn for the private property; and
  • the accrued interest (I) which you would have earned if the savings were not taken out from your CPF account.

If you are 55 years old and above, and have pledged your property to withdraw your Retirement Account (RA) savings in cash, you will need to refund the pledged amount on top of the P and I. The amount refunded to your CPF account will be used to meet your Full Retirement Sum in your RA. After this, any balance housing refunds will be paid to you in cash.

Can I use my CPF to pay for more than one property?

Yes. However, if you bought your second or subsequent property with CPF savings after 1 July 2006, you must set aside the current Basic Retirement Sum before you can use the excess savings in your Ordinary Account for the second or subsequent property. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet this required amount.
Please note that as the retirement sum will be raised annually, the amount you need to set aside will be adjusted accordingly.
The total CPF withdrawal for the second or subsequent property will also be capped at 100% of the Valuation Limit, which is the lower of the purchase price or valuation of the property at the time of purchase, if the remaining lease is at least 60 years.

How do I apply to use CPF money to buy property in Singapore?

1. You will have to authorize your lawyer to submit

    • an application form to use your CPF savings to buy the private property; and
    • a valuation report prepared by a licensed valuer

2. You will receive a Letter of Approval.

3. You will have to instruct your lawyer to work with CPF Board’s lawyer to complete the legal documentation.

Your CPF savings will be released to buy the private property after you have:

    1. submitted all legal documentation;
    2. paid the required cash downpayment of at least 5% of the valuation limit; and
    3. paid any balance purchase price after taking into consideration the CPF lumpsum and the housing loan amount.

The amount of CPF money can be withdrawn for housing matters is determined by the numbers of property you own, your age and policy changes. Click here for more details of use of CPF money for property purchase in Singapore. Here we work out a simple chart to help you better understand the CPF rules for financing your residential property. Please bear in mind to check for the more details and latest updates from CPF Board Website.

For more details of CPF OA savings used for property financing, please refer to CPF board webpage Private Home Scheme here.

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