Yes, you can use your CPF Ordinary Account (OA) savings to repay the loan for building your house on a vacant land. However, the total CPF savings allowed for both the construction loan and any existing loan taken to buy the property cannot exceed the value of the completed property.
Application Process
To apply for CPF usage, you must authorise your lawyer to submit an online application on your behalf by signing the Letter of Authorisation, Declaration, Consent & Agreement after the Temporary Occupation Permit is issued.
Required Documents
Your lawyer will need to attach the following documents in the application:
- Contractors' breakdown of construction costs;
- 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-assess the value of the property, if necessary;
- Original receipts to show evidence of the payment made from your own savings (if you are applying for reimbursement);
- Outstanding amount of the construction loan;
- Bank’s Letter of Offer for the construction loan;
- Bank’s letter of Offer for the conversion of the construction loan to a housing loan; and
- Temporary Occupation Permit
Building your second or subsequent property
If you already own a property (HDB flat or private property) purchased with CPF savings and wish to build another house, you can only use the excess balance in your OA after setting aside the
required retirement sum in your CPF accounts. This ensures that you can receive monthly payouts to support a basic living standard during retirement.
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Property Ownership
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Amount to set aside
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You have at least one property that can last you till age 95
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Basic Retirement Sum
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You have no property that can last you till age 95
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Full Retirement Sum
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Important Note
Adding rooms or extensions to an existing property are considered renovation or refurbishment. CPF cannot be used for such modifications.
