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How Much CPF Can You Use to Buy a Home? A Guide to Limits and Planning

ByBrian

Hey there! If you’re thinking about buying a home using your CPF savings, you’ve probably wondered, “How much can I actually use?” Well, the answer isn’t as straightforward as it seems because there are some limits to keep in mind. These limits are in place to help you strike a balance between getting your dream home and making sure you still have enough savings for your retirement. Let’s dive into how much of your CPF Ordinary Account (OA) savings you can splash on a property purchase!

Why Are There Limits on Using Your CPF Savings for a Home?

Think of it this way: your CPF savings aren’t just for buying a house. They’re also your safety net when you retire. So, the government puts a cap on how much CPF you can use for housing to ensure you don’t drain your nest egg too quickly. After all, a roof over your head during your golden years is just as important as having one now.

What Determines How Much CPF You Can Use?

There are quite a few factors that affect how much CPF OA savings you can use. These include:

  • The remaining lease of the property.
  • The type of property you’re buying.
  • The kind of loan you take for your home purchase.
  • The age of the property.
  • The flat’s valuation price and purchase price.

CPF even offers a handy calculator that lets you input details like your co-owners’ birthdays, the purchase date, and the flat’s valuation to help you figure out the exact amount of CPF you can use. Pretty convenient, right?

1. Remaining Lease of the Property

The biggest thing to look out for is the property’s remaining lease. The lease has to cover the youngest buyer until at least age 95. If it does, great news — you can use CPF OA for the lower of the purchase price or the valuation price at the time of purchase.

If the lease is shorter and doesn’t cover the youngest owner until 95, then there’s a pro-rated limit on how much CPF you and any co-owners can use. This rule helps ensure you have enough CPF savings remaining for future housing needs in retirement, like maybe moving to a replacement property.

2. Type of Property and Loan Type

This one can get a little detailed, but here’s the gist:

Type of Property Type of Loan Amount of CPF OA You Can Use
New HDB Flat (Bought Directly from HDB) HDB Loan You and your co-owners can use your full CPF OA savings for the entire purchase price, including the housing loan.
Resale HDB Flat HDB Loan You can use CPF OA up to the lower of the purchase and valuation price. After reaching this limit, you can continue to use CPF OA for the loan balance only if you have set aside your Basic Retirement Sum (BRS).
HDB Flat or Private Property Bank Loan CPF OA can be used up to the lower of purchase and valuation price. Once this limit is hit, you can use CPF OA further up to 120% of this amount if you’ve set aside your BRS.

Pointers Before You Buy

Knowing these limits helps you plan your finances better. Here are some tips to keep in mind:

  • Plan your finances carefully. Use the Home Purchase Planner to understand how much CPF you can use and what your overall budget looks like.
  • Choose your loan type wisely. If you take an HDB loan, you generally have more CPF usage flexibility compared to a bank loan.
  • Keep an eye on the remaining lease. If the property lease is short, CPF usage might be restricted.
  • Don’t forget to budget for other important expenses like renovations and furnishings, which CPF may not fully cover.

Tip: The Home Purchase Planner on the CPF website helps you explore your home purchase budget, loan options, and how your choices affect your retirement payout goals. Give it a spin before you jump in!

Want to Learn More?

If you’re aiming to spend your golden years in a cozy home, it pays off to understand all these rules and plan accordingly. Making informed decisions about your home purchase and CPF usage ensures you don’t overstretch yourself and still have enough savings for retirement.

Don’t stop here! Check out related guides and articles to deepen your knowledge about managing your CPF funds and planning for your dream home with peace of mind.

Information is accurate as of August 4, 2025.

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