You can use CPF Ordinary Account (OA) savings for the downpayment, stamp duty and legal fees, and monthly instalments, subject to the Valuation Limit (the lower of the price and the valuation) and the Withdrawal Limit (120% of that). When you sell, the CPF used plus accrued interest must be returned to your CPF account.
What CPF can pay
- Downpayment (with a bank loan, at least 5% of the price must be paid in cash)
- Monthly mortgage instalments
- Legal fees and stamp duty on the purchase
Limits
The Valuation Limit (VL) and Withdrawal Limit (WL) cap how much CPF you can use for a private property. You can use OA up to the Valuation Limit. Past it, you can keep using OA up to the Withdrawal Limit (120% of the Valuation Limit) only if you have set aside the required retirement sum, and nothing more once you reach the Withdrawal Limit, so the rest is paid in cash (CPF Board).
When you sell
CPF used for the home plus accrued interest (what that money would have earned in your OA, currently 2.5% a year) is refunded to your CPF account from the sale proceeds (CPF Board).
Sources to check
Frequently asked questions
Is accrued interest on CPF used for a home compulsory?
Yes. It is refunded to your CPF account when you sell, so net proceeds are lower than they look.