1. Application of terms and conditions
a. Parts A and C are applicable to CPF members who use their CPF savings to buy Housing and Development Board (“HDB”) flats or Design Build and Sell Scheme (“DBSS”) flats under the CPF Housing Scheme.
b. Parts B and C are applicable to CPF members who use their CPF savings to buy or build private residential properties under the CPF Housing Scheme.
2. Objective of the Scheme
a. The CPF Housing Scheme enables CPF members to use their CPF Ordinary Account savings to:
i. buy HDB or DBSS flats
ii. buy or build private residential properties in Singapore
Part A - Terms And conditions for use of CPF for HDB or DBSS flats under the CPF Housing Scheme
1. Use of CPF savings
a. You may use your CPF Ordinary Account (“OA”) savings for the following:
i. Direct payment of the purchase price of your HDB flat or DBSS flat (including the cost of the common areas) to HDB, DBSS property developer or sellers;
ii. Repayment of the housing loan in part or whole and/or to pay the monthly instalments of the housing loan1 taken for the purchase of your HDB flat or DBSS flat;
iii. Payment of the stamp duty, legal fees and other related costs incurred by you in connection with the purchase or mortgage of your HDB flat or DBSS flat; and/or
iv. Payment of the costs incurred by you in respect of upgrading your HDB flat under the HDB Main Upgrading Programme (“MUP”) and/or Town Council Lift Upgrading Programme (“TCLUP”) in part or whole and/or by monthly instalments.
b. CPF savings cannot be used for the following:
i. Payment of booking fees, option fees or deposit to HDB, DBSS property developers or sellers;
ii. Payment of resale levy to HDB where applicable;
iii. Payment of construction works, improvements, repairs and/or renovation of your HDB flat or DBSS flat;
iv. Payment of monthly service and conservancy charges including all rates, taxes and other charges imposed on your HDB flat or DBSS flat;
v. Repayment of non-housing loans (i.e. loans not taken for the purchase of your HDB flat or DBSS flat) and miscellaneous cost (i.e. penalties, insurance charges);
vi. Payment of purchase price that is above the lower of the purchase price or the valuation price of the property at the time of purchase for resale HDB flat and DBSS flat; and/or
vii. Reimbursement of any payments made to HDB out of your personal funds in respect of the purchase of your HDB flat.
1 The housing loan must be secured by a mortgage on the property that is owned by the CPF members.
2. CPF withdrawal limits
a. The use of your CPF savings towards your HDB flat or DBSS flat is subject to the CPF housing limits.
b. For HDB flat or DBSS flat bought:
i. before 1 July 2013; or
ii. from 1 July 2013 but before 10 May 2019 with a remaining lease of at least 60 years at the time of purchase; or
iii. from 10 May 2019 with a remaining lease that can cover the youngest owner using CPF for the flat till age 95,
the maximum amount of CPF that can be used towards the HDB flat or DBSS flat is as below.
c. For HDB flat or DBSS flat bought from 1 July 2013 but before 10 May 2019 with a remaining lease of less than 60 years but at least 30 years at the time of purchase:
i. The maximum amount of CPF savings that can be used for the HDB flat or DBSS flat is capped at a percentage of the lower of the purchase price or the valuation price of the property at the time of purchase. The percentage is computed based on the remaining lease of the flat when the youngest eligible owner using CPF savings reaches age 55.
ii. To be eligible to use CPF, your age plus the remaining lease of the flat must be at least 80 years at the time of purchase.
iii. No CPF savings can be used if the remaining lease of the HDB flat or DBSS flat is less than 30 years at the time of purchase.
d. For HDB flat or DBSS flat bought from 10 May 2019 with a remaining lease that does not cover the youngest owner using CPF for the flat till age 95:
i. The maximum amount of CPF savings that can be used for the HDB flat or DBSS flat is capped at a percentage of the lower of the purchase price or the valuation price of the property at the time of purchase. Table 1 shows a rough guide on how the maximum amount of CPF savings that you can use for your property changes with age and the remaining lease of the property.
ii. No CPF savings can be used if the remaining lease of the HDB flat or DBSS flat is 20 years or less at the time of purchase.
e. For HDB flats purchased under the Fresh Start Housing Scheme (“FSHS”) from 1 December 2016, the time of purchase used for the computation of the additional amount above the lower of the purchase price or the valuation price of the property at the time of purchase is:
i. The estimated lease commencement date where the lease commencement is in the future; or
ii. The flat application date where the lease has already commenced.
3. Type and repayment of housing loan
a. You can choose to finance your HDB flat or DBSS flat with a housing loan from HDB or from a bank that is regulated by the Monetary Authority of Singapore, subject to the eligibility conditions.
b. The amount of CPF savings to be withdrawn each month for instalment payments shall not exceed the amount required for the monthly repayment of the housing loan.
c. You have to be insured under the CPF Home Protection Scheme if you are using your CPF savings to service the housing loan for your HDB flat or DBSS flat.
Part B - Terms and conditions for use of CPF for private residential properties under the CPF Housing Scheme
1. Use of CPF savings
a. You may use your CPF Ordinary Account (“OA”) savings for the following:
i. Direct payment of the purchase price of your private residential property to the property developer or sellers;
ii. Repayment of the housing loan in part or whole and/or to pay the monthly instalment of the housing loan taken for the purchase of your property, land and/or for construction of a house on that land; and/or
iii. Payment of the stamp duty, legal fees and other related costs incurred by you in connection with the purchase or mortgage of the property and/or construction of the house.
b. CPF savings cannot be used for the following:
i. Payment of option fees to property developers or sellers;
ii. Payment of construction works, improvements, repairs and/or renovation of your private residential property;
iii. Payment of monthly service and conservancy charges including all rates, taxes and other charges imposed on your private residential property;
iv. Repayment of non-housing loans (i.e. loans not taken for the purchase of your private residential property) and miscellaneous cost (i.e. penalties, insurance charges); or
v. Payment of purchase price that is above the lower of the purchase price or the valuation price of the property at the time of purchase for resale private residential property; and/or
vi. Reimbursement of any payments made to the property developers or sellers out of your personal funds in respect of the purchase of your private residential property.
c. If you are an undischarged bankrupt, you are not allowed to withdraw your CPF savings to buy or build private residential property.
d. For private residential properties which are under construction, CPF savings can be used to meet the progressive payments to the property developers when due.
e. For private residential properties constructed by unlicensed developers, CPF savings can only be released when the properties are completed up to the roofing stage.
2. Additional conditions on the use of CPF savings for purchase of land and construction of house
a. CPF savings cannot be used to pay the land and/or the construction cost of the house directly. You would have to use your own funds (and seek for reimbursement later) and/or a loan to meet the said payments first.
b. Request for reimbursement of CPF savings have to be made within six months from the issue of the Temporary Occupation Permit (“TOP”). The reimbursement will be in the form of a one-time payment, subject to available balance in your OA. Monthly withdrawals are not allowed.
c. Application for the above purpose should only be submitted, together with the below documents, after the TOP has been issued:
i. Valuation report of the completed property prepared by a licensed valuer. Valuation report prepared by the financier will be considered on a case by case basis. The Board reserves the right to re-asses the value of the property, if necessary;
ii. Breakdown of contractors' construction costs;
iii. Original receipts to show evidence of the payments made from your own funds, if you are applying for reimbursement;
iv. Financier’s Letter of Offer for the land/construction loan(s); and
v. Grant of written permission from Urban Redevelopment Authority (URA) for the proposed ‘reconstruction’ or ‘erection’ of the new property.
3. CPF withdrawal limits
a. The use of CPF savings towards the private residential property is subject to the CPF housing limits.
b. For private residential property bought:
i. before 10 May 2019 with a remaining lease of at least 60 years at the time of purchase; or
ii. from 10 May 2019 with a remaining lease that can cover the youngest owner using CPF for the property till age 95,
the maximum amount of CPF that can be used towards the private residential property is as follows.
c. For private residential property bought from 19 July 2005 but before 10 May 2019 with a remaining lease of less than 60 years but at least 30 years at the time of purchase:
i. The maximum amount of CPF savings that can be used for the private residential property is capped at a percentage of the lower of the purchase price or the valuation price of the property at the time of purchase. The percentage is computed based on the remaining lease of the property when the youngest eligible owner using CPF savings reaches age 55.
ii. To be eligible to use CPF, your age plus the remaining lease of the private residential property must be at least 80 years at the time of purchase.
iii. No CPF savings can be used if the remaining lease of the private residential property is less than 30 years at the time of purchase.
d. For private residential property bought from 10 May 2019 with a remaining lease that does not cover the youngest owner using CPF for the property till age 95:
i. The maximum amount of CPF savings that can be used for the private residential property is capped at a percentage of the lower of the purchase price or the valuation price of the property at the time of purchase. Table 1 shows a rough guide on how the maximum amount of CPF savings that you can use for your property changes with age and the remaining lease of the property.
ii. No CPF savings can be used if the remaining lease of the private residential property is 20 years or less at the time of purchase.
4. Type and repayment of housing loan
a. You may use your CPF savings to repay the following types of housing loan2:
i. Housing loan obtained from any bank licensed under the Banking Act (Cap. 19) or finance company licensed under the Finance Companies Act (Cap. 108) or any merchant bank approved as a financial institution under the Monetary Authority of Singapore Act (Cap. 186)) to finance your property purchase;
ii. Housing loan which resulted from a transfer of the initial housing loan from one lender to another, provided the initial housing loan was taken to finance your property purchase;
iii. Housing loan obtained from a bona fide employer and you are required to repay the housing loan by monthly instalments as stipulated in the agreement entered into with your employer; and
iv. Housing loan granted on a non-checking overdraft account by a bank in Singapore.
b. If your property purchase is financed with a checking overdraft account, the amount of loan that is treated as the housing loan is the lowest outstanding amount of the overdraft from the time it was granted to the date of application for withdrawal of CPF savings. This portion of the loan has to be converted to a term loan before CPF savings can be used to repay the loan. The portion of loan that is not converted to a term loan cannot be repaid with CPF savings.
c. The amount of CPF savings to be withdrawn each month for instalment payments shall not exceed the amount required for the monthly repayment of the housing loan.
2 The housing loan should be for a fixed term, secured by a mortgage on the property which is owned by the CPF members.
Part C - Standard terms and conditions
1. Reservation of CPF savings before turning 55
a. If you are 54 years old, you may apply to reserve the savings in your OA so that the OA savings will not be transferred to your RA when you turn 55. You may apply to reserve your OA savings for the following purposes:
i. Repayment of the existing housing loan; and/or
ii. Finance the payment of the purchase of your next property.
If your request is approved, the requested sum will be reserved in your OA for housing payments for the specified property and cannot be used for other properties or any other payments under other CPF Schemes. The use of your CPF savings is also subject to the applicable CPF housing limits.
b. When you start your monthly payouts under CPF LIFE or the Retirement Sum Scheme, your reserved OA savings will be transferred to your RA if you have not set aside your Full Retirement Sum. This transfer increases your RA savings and will enhance your monthly payouts.
2. Use of CPF saving for Multiple Property purchase
a. There are additional restrictions if you have used your CPF savings for a property and are applying to use your CPF savings for a second or subsequent property (“Multiple Property”).
b. For Multiple Property bought from 1 July 2006 but before 10 May 2019:
i. You are required to set aside the latest BRS before you can use the excess savings in your OA for the Multiple Property;
ii. The maximum amount of CPF that can be used for your Multiple Property is capped at:
• Lower of the purchase price or the valuation price of the property at the time of purchase for property with a remaining lease of at least 60 years at the time of purchase; or
• A percentage of the lower of the purchase price or the valuation price of the property at the time of purchase for property with a remaining lease of less than 60 years but at least 30 years at the time of purchase.
c. For Multiple Property bought from 10 May 2019:
i. You are required to set aside the following before you can use the excess savings in your OA for the Multiple Property
• The latest BRS if you have at least one property bought using CPF or the property that you are buying can cover you till age 95*
• The latest Full Retirement Sum (“FRS”) if you do not have any property that can cover you till age 95
* If you subsequently sell the property that can cover you till age 95, you will need to set aside the FRS instead.
ii. The maximum amount of CPF that can be used for your Multiple Property depends on whether the remaining lease of the Multiple Property can cover the youngest owner using CPF for the Multiple Property till age 95. Please refer to Part A paragraphs 2b, 2d and Part B paragraphs 3b, 3d for more details.
d. If you intend to sell your existing property (such that your new property would be your only property using CPF), you will be given a 6-month grace period to do so. During the grace period, you do not have to set aside the applicable BRS or FRS. The grace period is:
i. 6 months from the date of issue of the Temporary Occupation Permit if the new property is under construction; or
ii. 6 months from the date of completion of purchase if the new property is a completed property
3. Application for use of CPF savings
a. If you wish to use your CPF for your property, you must submit an application to the Board (through your lawyers) to withdraw your CPF savings for this purpose. You shall furnish to the Board any documentary evidence as is required by the Board.
b. For the purpose of processing your application,
i. Your mortgagee/bank may disclose to the CPF Board any information concerning you as the CPF Board may consider appropriate
ii. The CPF Board may disclose to your mortgagee/bank such information as the CPF Board may consider appropriate
iii. The CPF Board and your mortgagee/bank may use the above information
c. The CPF Board and any third parties shall not be liable for, and you shall indemnify the CPF Board fully against, any loss, damage, cost, liability, claim, demand, action, proceeding or expense which you or any third party may sustain or incur arising from the disclosure or usage of the information referred to in clause 3b.
d. The Board reserves the right to value the property before releasing any CPF savings. The valuation fees shall be paid by you.
e. In the event that you pass away after your application to use your CPF savings for the property is accepted by the Board but before the payment is released from your CPF account(s), no payment will be released from your account(s) for the purchase of the property or payment of the housing loan.
f. Before your CPF savings can be released for the property, you will need to fully pay the balance purchase price in cash. The balance purchase price is the amount remaining after deducting the housing loan and the approved CPF amount that will be paid to the property developer, HDB or seller of the property.
g. CPF savings withdrawn by you for the property shall not be paid to you, but shall be paid to the property developer, HDB, sellers, town councils or such other entities as the Board deems fit to receive such monies.
4. CPF Charge on the property
a. All CPF savings withdrawn with respect to the property shall be secured by a CPF Charge (the “Charge”) against the property. The Charge on the property is imposed immediately upon the release of your CPF savings for the property. The Charge shall be in force until all CPF monies released for the property, including the interest accrued, or an amount as determined by the Board, are refunded into your CPF account(s).
5. Refund of CPF savings upon sale, transfer or disposal of the property
a. When the property is sold, transferred or otherwise disposed during your lifetime regardless of your age, you are required to refund to your CPF account(s) the CPF principal amount withdrawn together with the accrued interest. If you are aged 55 or above and had pledged the property to make up your retirement sum, you will also be required to refund the pledged amount.
b. If the selling price (including the option monies) after paying the outstanding housing loan is not enough to fully refund your CPF, you do not need to top up the shortfall in cash, provided the property is sold at market value. However, any option monies (e.g. option fee and option exercise fee) received from your buyer in cash upon the sale of your property are considered part of the selling price and need to be refunded to your CPF account(s) before the transaction can be completed.
6. Appointment of lawyers for the release and/or refund of CPF savings
a. The Board may appoint a lawyer to act for the Board in the disbursement of your CPF savings for the completion of your property purchase, and/or collection of repayment of your CPF refunds upon the sale, transfer or otherwise disposal of your property. The costs incurred by the Board’s lawyers will be borne by you.
b. The indicative costs3 are as follows:
3 The costs indicated above exclude GST, and may vary depending on the nature of work and members’ application.
7. Responsibility of the member
a. If you have used your CPF savings for your property, you, your financier and/or your law firm are required to notify the Board when any of the following events takes place:
i. Your housing loan is fully redeemed (e.g. through cash or CPF monthly instalments);
ii. The housing loan taken for the purchase of your property is refinanced to another financier;
iii. Your financier increases the quantum of the housing loan granted to you (Please note that the Board may require you and your financier to maintain a separate loan account for the loan in excess of the original loan quantum); or
iv. The tenure of your housing loan is changed (This is applicable if you are using your CPF savings to pay the monthly instalments).
b. The Board shall not be responsible nor liable for, and you shall indemnify the Board fully against, any loss, costs, charges, liabilities, claims, demands, actions, proceedings or expenses which you may sustain or incur in connection with the use of CPF savings arising from any unforeseen disruption to the service.
8. Penalty for false declaration and misuse of property
a. For the purpose of the CPF Housing Scheme, you shall be guilty of an offence under the CPF Act if you:
i. Knowingly make a false statement or declaration; or
ii. Produce or furnish, or cause or knowingly allow to be produced or furnished any document which you know to be false in material particular.
9. Applicable laws
a. Please refer to the following applicable legislation:
i. Sections 15(9) – (15), 21, 21A, 21B, 27C, 27DA, 27DB, 27E and 27F of the CPF Act;
ii. CPF (Approved HDB-HUDC Scheme) Regulations;
iii. CPF (Approved Housing Schemes) Regulations;
iv. CPF (Approved Middle-Income Housing Scheme) Regulations;
v. CPF (Ministry of Defence Housing Scheme) Regulations;
vi. CPF (New Retirement Sum Scheme) Regulations;
vii. CPF (Non-Residential Properties Scheme) Regulations;
viii. CPF (Residential Properties Scheme) Regulations;
ix. CPF (Retirement Sum Scheme) Regulations;
x. CPF (Retirement Sum Topping-Up Scheme) Regulations; and
xi. CPF (Revised Retirement Sum Scheme) Regulations
Important: Please note that these rules are for reference only and is subject to prevailing laws, including CPF rules and regulations, as may be amended from time to time.