How the CPF Home Purchase Planner Simplifies Your Home Buying and Secures Your Retirement

Purchasing a home is no joke—it’s probably one of the biggest financial commitments you’ll make in your life. If you’re gearing up to buy your first place or upgrading to a new home, understanding your finances and setting a manageable budget can save you from future headaches. That’s where the CPF Home Purchase Planner comes into play.

Now, you might be thinking, “Isn’t this just another run-of-the-mill house loan calculator?” Actually, no. The Home Purchase Planner from the CPF Board goes beyond crunching numbers for loans. It looks at your whole financial picture and housing situation to give you a personalized plan that fits your lifestyle and goals. Let’s break down the three key reasons why this tool is more than just your typical calculator.

1. It gives you a personalised budget for your next home

The biggest hurdle often is figuring out how much you can realistically afford without stretching yourself thin. The Home Purchase Planner helps you get that clarity by considering your income, expenses, and savings—including both your cash on hand and CPF savings. It even factors in sales proceeds if you’re selling an existing home. This means you get a budget tailored specifically to YOUR financial situation, not some generic estimate.

Getting this personalized budget is like having a financial buddy holding your hand and saying, “Hey, this is what you can reasonably aim for.” It sets a clear starting point and helps make your home buying journey less stressful.

2. It provides key financial details, such as the housing loan and upfront payments you have to make

Once you know your budget, the planner goes a step further by showing you detailed financials—think estimated housing loan amount, monthly instalments, loan period, and upfront costs like downpayment, stamp duty, and legal fees. Armed with this info, you can see exactly what you need to have ready before that key handover day.

Here’s a pro tip: whenever possible, try to use cash to service your housing loan. Why? Because every dollar you don’t spend from your Ordinary Account (OA) is one more dollar that stays put for your retirement nest egg. Smart money moves like this can make a big difference down the line.

3. It visualises how a home purchase can impact your retirement

Retirement might seem far away, especially if you’re young and excited about owning a home. But trust me, the way you buy your house today affects your retirement payouts tomorrow. The Home Purchase Planner lets you see this impact clearly. Plug in how much you want your retirement payouts to be, and it will show you if your projected savings can meet that goal.

This visualization helps you make informed choices—balancing your current needs with your future security. It’s like having a crystal ball that tells you how your home purchase decision today could shape your golden years.

Bonus: Setting aside the Basic Healthcare Sum with your MediSave savings

Health expenses are part and parcel of the future, so the planner also nudges you to set aside the Basic Healthcare Sum using your MediSave savings. This nudge ensures you’re not caught off guard by medical costs later, adding another layer of protection to your financial planning.

The best part? Completing the Home Purchase Planner only takes about 10 minutes and you can do it all online in one go. For even better accuracy, log into your CPF account during the process to get tailored estimates that reflect your actual savings and commitments.

Try out the CPF Home Purchase Planner and take control of your home buying journey today.

Remember, the journey to owning a home should be exciting, not stressful. With the right planning tools, you can confidently take each step and ensure peace of mind for your present and future.

Disclaimer: The information provided is accurate as of the date of publication.