FOR SALE

BUYING YOUR FIRST HOME

What Can My CPF Savings Pay For?

How Much Of My CPF Savings Can I Use?

WHAT YOU NEED TO KNOW

OrdinaryAccount

(OA)

STAMP

DUTY

Downpayment For The Property Purchase Housing Loan

Taken For The Property Purchase

can be used for:

Home ProtectionScheme Premiums

(for HDB flats only)

Stamp Duties,Legal Fees

Loan Taken For The Construction Of Your House Or The Purchase Of Vacant Land

(for private properties only)

Your CPF savings cannot be used to pay for • The purchase price that is above market valuation• The minimum cash downpayment required for bank loans • Cost of renovation, and• Agent’s commission

Limits have been put in place to encourage you to be prudent when buying a property and help you set aside more CPF savings for your retirement.

Note: Di�erent limits apply if you buy a property which has a remaining lease of less than 60 years. Please refer to the brochure on ‘Using CPF for a property with a

remaining lease of less than 60 years’ for more information.

What Are The Limits?

When you first useyour CPF savings

Valuation Limit(100% of purchase price or

market valuation, whichever is lower)

Withdrawal Limit(120% of

Valuation Limit)

HDB Loan No limit

HDB LoanNo limit if you set aside the

Basic Retirement Sum.Up to Valuation Limit if you are unable to set aside the Basic Retirement Sum.

New HDB Flat

Resale HDB Flat / DBSS

Bank LoanUp to Withdrawal Limit if you set aside the Basic Retirement Sum.

Up to Valuation Limit if you are unable to set aside the Basic Retirement Sum.

HDB Flat / DBSS / Private Property

Type Of Property Type Of Housing Loan Applicable Housing Limits

55 Years And AboveBelow 55 Years

Have set aside the current Basic Retirement Sum in your Special Account* and Ordinary Account.

Have set aside your Basic Retirement Sum in your Retirement Account, Special Account* and Ordinary Account.

You and your co-owner may use both your Ordinary Account savings up to the Valuation Limit for the purchase of your property and/or for payments of your monthly housing loan.

Once the Valuation Limit is reached, you can continue to use your Ordinary Account savings after meeting the following condition:

SA* RA SA*OA OABRS BRS+ + +> >

Valuation Limit of purchase price or market value of the property at the time of purchase

Withdrawal Limit of CPF savings you can use if you are taking a bank loan.

*Including amount withdrawn for investment.

The Withdrawal Limit is currently set at 120% of the Valuation Limit. Once this limit is reached, you cannot use any more of your CPF savings. You have to use cash to service your outstanding loan.

is the maximum

amount

is the lower

Other Useful Tips

TDSR < 60%

CPF contributions

Age

MonthlyHousing

Instalment< 30%

of your gross monthly income

of your gross monthly income

MonthlyIncome

MonthlyIncome

Your Total Debt Servicing Ratio (TDSR) should not exceed 60% of your monthly income.

Keep your monthly instalment within 30% of your gross monthly income. As this is a long-term financial commitment, make sure paying for the monthly housing loan remains affordable.

You should plan to pay off your housing loan before 55 or you may have to fork out more cash to service your monthly instalments in your later years.

A mortgage reducing insurance will help pay for your outstanding housing loan in the event of unforeseen circumstances. If you are using your CPF savings to service your monthly instalments for your HDB flat, you are required to be covered under the Home Protection Scheme (HPS).

Manage Your Housing Loan1

Pay O� Your Housing Loan By 552 Be Insured Under A Mortgage

Reducing Insurance3

www.areyouready.sg CPF Board @CPF_Board CPFvideos

©Central Provident Fund Board. All rights reserved.www.cpf.gov.sg

HPS

Use the CPF Housing Withdrawal Limits Calculator on the CPF website to estimate when you will reach the Limits.