29 May 2026

SOURCE: CPF Board

Your CPF savings serves three purposes: helping you own a home, paying for your healthcare expenses, and building your retirement savings. When CPF savings are used for your property, your retirement savings are reduced.

When selling your property, you will need to refund the CPF principal amount used plus accrued interest. This restores your CPF savings and helps ensure you have enough set aside for retirement.

But why do you have to pay accrued interest? This is because every dollar used from your CPF accounts is also a dollar that stops earning interest. Refunding it back to your CPF accounts restores the CPF savings you would have accumulated had you not used them for housing.

A voluntary housing refund (VHR) lets you make that refund early, even before you sell your flat. This restores your CPF savings used towards your property and boosts your retirement nest egg, regardless of whether you choose to sell your property in future.

How much CPF savings can you voluntarily refund

You can refund any amount, up to the total CPF principal amount withdrawn for your property, including the accrued interest that has built up. You can check the amount available for voluntary refund on your Home ownership dashboard.

A partial refund, such as when you receive a work bonus, or multiple top-ups over time can also be made.

3 reasons to make a voluntary housing refund

The money restored to your OA earns up to 3.5% per annum. This is a guaranteed, risk-free return.

By making a VHR, you can give a boost to your CPF savings and receive higher monthly payouts when your CPF savings are annuitised to CPF LIFE from age 65.

The longer you hold your property, the more CPF savings you have to refund. This is because the interest continues to accrue, not only on the CPF principal amount withdrawn, but also on any interest that has already accrued on the principal sum.

If you eventually sell your property, any sales proceeds (after repaying the outstanding housing loan) will be used to refund the CPF principal withdrawn plus all accumulated interest to your CPF accounts before you receive any cash proceeds.

By making a VHR early, you reduce the accrued interest that is being built up. This means a larger share of the sale proceeds may be received in cash, compared to if no voluntary refunds were made.

This difference can be significant if you are about to retire and looking to give your retirement savings a boost by right-sizing your home.

While your housing refund will be mainly credited to your Ordinary Account (OA), it can also be credited to your other CPF accounts such as your Special Account (SA), Retirement Account (RA) and MediSave Account (MA), depending on your age and amount of housing grants received. For example, your housing refund could also be credited to your SA/ RA and MA if you have received more than $30,000 in housing grants.

The amount refunded to your OA can be reused under the various CPF schemes, such as for a replacement property, the CPF Investment Scheme or even transferred to your SA or RA for higher risk-free interest and higher payouts in the future, while the amount credited to your MA could be used for approved healthcare expenses.

Considerations before making a voluntary housing refund

Making a VHR is not a one-size-fits-all decision. If you are approaching retirement and plan to rightsize your home, a VHR is worth considering as it helps to boost your retirement finances ahead of the eventual move.

Alternatively, if you have excess cash savings after paying your housing loan, a VHR is worth considering as the refunded savings can start earning interest and boost your retirement finances.

Regardless of your life stage, keep these four things in mind before you make a VHR.

1. Your refund may be used towards your RA first

If you are currently aged 55 or older and have not yet set aside your Full Retirement Sum in your RA, the VHR will be transferred to your RA to make up the shortfall. Any remaining VHR will continue to stay in the credited CPF accounts. 

2. A VHR is typically a long-term commitment

If you are currently aged 55 and below, you will not be able to withdraw the refunded amount credited to your CPF accounts in cash until you meet the CPF withdrawal conditions from age 55.  

3. Set aside sufficient cash buffer for emergency expenses

Since a VHR is made in cash, your personal asset liquidity will be reduced after the refund.

If you have ongoing financial commitments such as debt or mortgage, opting for a VHR might not be advisable as you will still need cash for your day-to-day expenses.

4. You will not get tax relief by making a VHR

Unlike cash top-ups to your SA/RA or top ups to your MediSave that provide tax relief, a VHR does not qualify for any form of tax relief.  Learn more about the differences between topping up your RA savings, making a VHR, topping up your MA, and topping up to your three CPF accounts.

Make a voluntary housing refund and refund less when selling your property

Making a VHR early means you refund less to your CPF accounts and potentially receive more cash proceeds when selling your property. You also can have the flexibility to reuse your CPF savings for other CPF-approved schemes.

By restoring the CPF savings used for your property purchase early, you can take advantage of the risk-free CPF interest rates and have more CPF savings for your retirement!

Information in this article is accurate as at the date of publication.