Using CPF for Private Property

Long Term Planning For Using CPF for Private Property

Are You Eligible For Using CPF for Private Property?

​The Private Properties Scheme enables CPF members to use their CPF Ordinary Account savings to buy or build private residential properties in Singapore for their own occupation or investment.​​

It can be used to:

• pay the purchase price of the private property;
• repay the housing loan in part or whole and/or to service the monthly housing loan instalments taken to buy the private property;
• repay the construction loan in part or whole and/or to service the monthly construction loan instalments taken to buy land and/or to construct a house on that land; and
• pay the stamp duty, legal costs, survey fees and other related cost incurred in the private property purchase, refinancing and/or construction of the house.

All CPF members (SC / SPR) who are eligible to buy a private property are eligible to use their CPF savings under Private Properties Scheme (PPS). You have to be insured under a mortgage insurance when you use CPF for monthly instalment of your housing loan.

However, you are not eligible to use your CPF savings under Private Properties Scheme if you are:

• buying a private property with a remaining lease of < 30 years;
• buying a private property with a remaining lease of < 60 years but at least 30 years and your age plus the remaining lease of the private property is < 80 years^;
• a single person buying a private property with a non-related single and you have used CPF for an existing property;
• a married person buying a private property with a non-related single.

^ This is to ensure that the flat will last the owner until he/she is at least 80 years old, which is roughly the average life span of Singaporeans at birth.

Is There A Limit For Using CPF for Private Property??

CPF is essentially for your retirement. The more you use for property, the less you may have for retirement. To ensure you have enough savings for your retirement, there is a limit on the amount of CPF savings you can use for your housing.

Private Property With A Remaining Lease Of At Least 60 Years

• Valuation Limit (VL) – the purchase price or the value of the private property at the time of purchase, whichever is lower.
• Withdrawal Limit (WL) – 120% of the VL. This is the maximum amount of CPF you can use for the private property.

Conditions to use CPF beyond Valuation Limit, up to Withdrawal Limit

< 55 years old
To set aside the current Basic Retirement Sum in your Special Account (including the amount withdrawn for investment) and Ordinary Account, .

≥ 55 years old
To meet the Basic Retirement Sum in your Retirement Account, Special Account (including the amount withdrawn for investment) and Ordinary Account.

Private Property With Remaining Lease of Less Than 60 Years But At Least 30 Years

The amount of CPF you can use is lower if you are buying a private property with a remaining lease of less than 60 years but at least 30 years.

You may refer to the table below to calculate the maximum amount of CPF that can be withdrawn. Use this table to determine the percentage to be applied on the lower of the purchase price or the value of the property at the time of purchase:

Can I Use My CPF To Buy More Than One Property?

You can use your CPF savings to buy more than one property. However, with effect from 1 July 2006, you must set aside the current Basic Retirement Sum before you can use the excess savings in your Ordinary Account for the second or subsequent property.

The retirement sum will be raised annually, the amount you need to set aside will be adjusted accordingly. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet this required amount.

The total CPF withdrawal for the second or subsequent property will also be capped at 100% of the Valuation Limit, which is the lower of the purchase price or valuation of the property at the time of purchase, if the remaining lease is at least 60 years.​

How Much To Refund To CPF Upon The Sale of The Private Property?

If you have used your CPF savings to finance your private property, you will have to refund to your CPF:

• the principal CPF amount which you have withdrawn for the private property;
• the accrued interest which you would have earned if the CPF savings were not taken out from your CPF account.

≥ 55 years old

If you are 55 years old and above, and have pledged your property to withdraw your Retirement Account savings in cash, you will need to refund the pledged amount on top of the principal CPF amount and the accrued interest.

The amount refunded will be used to set aside:

• the Full Retirement Sum in your Retirement Account;
• the current Medisave Minimum Sum in your Medisave Account if required (from 1 January 2016, the MMS will be removed).

After which, you can withdraw the balances in cash.