You can use your CPF Ordinary Account (OA) savings to pay for various costs associated with buying an HDB flat, including the downpayment, monthly mortgage installments, stamp and legal fees, and Home Protection Scheme premiums. For a new HDB flat purchased with an HDB loan, there is no limit on how much CPF savings you can use. When you take an HDB loan, you can choose to retain up to $20,000 in your CPF OA as a safety buffer for unforeseen circumstances. This means you do not have to use your entire CPF savings for the purchase if you prefer to keep some funds for emergencies. If you take a bank loan instead of an HDB loan, the CPF amount you can use is limited to 120% of the property valuation or purchase price, whichever is lower. Key points:
- For HDB loans on new flats, no CPF usage limit.
- You can retain up to $20,000 in your CPF OA when taking an HDB loan.
- For bank loans, CPF usage is capped at 120% of property valuation.
- CPF can be used for downpayment, monthly installments, legal fees, stamp duties, and insurance premiums related to HDB purchase.
- When selling the property, CPF amounts used plus interest must be refunded to preserve retirement savings.
