To support home ownership in Singapore, the CPF Housing Scheme, which was first introduced in 1968, allows CPF members to use their Ordinary Account (OA) savings to pay for their HDB flats or private residential properties in Singapore.
Using our CPFOA savings, we can not only pay for the down payment for the properties we purchase but also use our OA savings to help service the monthly mortgage. Doing so will reduce the cash outlay we need to pay each month for our mortgage repayment.
For those of you who are buying a property and want to make use of the CPF Housing Scheme to utilise CPF savings to service the mortgage (i.e. most home owners in Singapore), or would like to make changes to your monthly instalment, here’s a step-by-step guide on how you can use the CPF portal to pay for your housing loan.
Editor’s Note: Do note that the CPF Board has appointed a panel of law firms to handle all legal matters required in processing member’s application to use CPF for the purchase of properties. You will need your law firm to process your application to use CPF. This should ideally be done at the point of your property purchase through the law firm that is helping you. The list of law firms are here. Subsequently, you can set up, amend or cancel using your CPF to pay for your housing loan on your own via the CPF portal.
Step 1: Login To CPF Portal Via Singpass
If you are servicing a housing loan taken with a bank, you will need to apply for the CPF Housing Scheme via the CPF portal.
For those servicing an HDB loan, you can either submit an online application through the HDB website or do it in person at the HDB branch office.
For this article, we will assume that you have taken a housing loan with a bank. You can login to the CPF portal using your Singpass.
Step 2: My Requests > Property > Use CPF for my property
Once you login to the CPF portal. Go the my CPF Online Services
Click on the tab My Requests > Property > Use CPF for my property.
Step 3: Select The Property That You Want To Use Your CPF Savings For
At this point, you will see the property that you own and the address for the property.
For those with multiple properties, choose the property that you want to use your CPF OA to pay for. Your CPF OA can be used to service multiple property loans as long as you have enough savings.
Step 4: Choose The Payment Option You Are Looking For
You would see multiple options. As I already started the CPF monthly instalment for my property. The option I have is – Revise Monthly Instalment.
If this is your first time, you would see an option that allows you to commence your monthly instalment.
Do take note of the amount of time needed to commence or to revise your monthly instalment. If this is your first time paying your monthly instalment, make sure you submit your request at least 5 working days before your monthly instalment deduction date.
Step 5: Choose The Bank That You Are Paying Your Monthly Instalment
For the next step, you would need to 1) choose the bank that you are paying your monthly instalment to, as well as 2) the amount that you want to pay from your CPF OA each month. Do note that the monthly amount to be paid from CPF should not be higher than your housing instalment each month.
If you are revising the monthly instalment, then the details of the existing payment will already be shown. You can adjust the amount accordingly.
If this is the first time, you will need to include who your financier is (which bank you use) and the amount to be paid.
The Valuation Limit (VL) & Withdrawal Limit (WL) Affects How Much We Can Use For The CPF Housing Scheme
While there is no limit to how much CPF OA we can use each month to repay our monthly mortgage (as long as it doesn’t exceed the amount you have to repay), there is a limit to the total amount of CPF savings we can use to finance the purchase of an individual property.
The Valuation Limit (VL) refers to the valuation of our property at the point of purchase or the price we paid for the property, whichever is lower. The Withdrawal Limit (WL) is 120% of the VL.
If we are using a bank loan for our HDB or private property, and assuming the remaining lease of our property covers the youngest owner of the property till age 95, once the total CPF withdrawal by all owners reaches the VL, all owners have to set aside the prevailing Basic Retirement Sum (BRS) in their OA and SA (for those below age 55), or their OA, SA and RA (55 and above) if they wish to continue withdrawing more CPF savings from their OA to service the outstanding housing loan.
However, once homeowners’ usage of their CPF on this property hits the Withdrawal Limit (120% of the VL), no further usage of CPF to service this home loan is allowed. You can read more about how the Valuation Limit and Withdrawal Limit works below.
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