How can you use CPF to buy property, and what happens when you sell?

How much of your Ordinary Account you can use

In most cases you can use savings in your CPF Ordinary Account (OA) to buy residential property, but the amount depends on the type of property, the remaining lease, your age and CPF's withdrawal limits. The figure most of the rules turn on is the lower of the purchase price or the valuation at the time of purchase. If you pay more than the valuation, the difference must be paid in cash.

As at August 2026, one law firm summarises CPF's published limits as follows:

• new HDB flat from HDB with an HDB loan: up to the full purchase price
• resale HDB flat with an HDB loan: up to the lower of price or valuation, and beyond that for the remaining loan if each owner has set aside their Basic Retirement Sum
• HDB flat or private property with a bank loan: up to the lower of price or valuation, and beyond that up to 120% of that figure if each owner has set aside their Basic Retirement Sum

Why the remaining lease matters

If the property's remaining lease can cover the youngest owner until age 95, the usual limits above apply. If it cannot, the amount of CPF you can use is pro-rated, and once that lower limit is reached no more OA savings can be used for the property, even if you have set aside your Basic Retirement Sum.

This can make an older flat need far more cash than expected, so check the position before you make an offer.

Keeping some savings in your account

As at August 2026, buyers taking an HDB loan may keep up to $20,000 in their OA, with the rest going towards the purchase. Buyers taking a bank loan can choose how much to keep, and CPF recommends keeping at least $20,000. A balance left in the account continues to earn interest and gives a buffer if your income stops.

Beyond the price and monthly instalments, OA savings can generally be used for related costs such as stamp duty and legal fees, subject to CPF's rules and what you have available.

What happens when you sell

When you sell a property bought with CPF, you must refund to your CPF account the amount you withdrew plus accrued interest, meaning the interest that money would have earned had it stayed in your OA. Housing grants received are refunded too. This refund comes out of the sale proceeds before any cash reaches you, together with any outstanding loan, and it builds up the longer you own the property. The money is not lost, as it goes back into your own CPF account, but it is not cash in hand for your next purchase.

Two further points are worth knowing:

• option money you receive in cash from the buyer counts as part of the price and must be refunded to your CPF account before completion
• if you sell at market value and the price does not cover both the outstanding loan and the full CPF refund, you do not have to top up the shortfall in cash; selling below market value, for example to a family member, is different

The lawyer's role

When you buy, your conveyancing lawyer applies to the CPF Board so that your CPF money is released and applied correctly at completion. When you sell, the lawyer works out the refund and makes sure the CPF money used, with accrued interest, is returned to your account from the sale proceeds.

When to speak to a lawyer

CPF affects how much cash you need at every stage: at the option, on exercise and at completion. It helps to confirm your CPF position early, especially for an older property, a purchase above valuation, or a sale to a family member. CPF rules change from time to time, so check the current limits with CPF or your lawyer before relying on these figures.