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Using CPF for property: the limits, the retirement sum, and the interest that follows you
CPF usage is capped by the Valuation Limit — the lower of price or valuation — and extends to 120% of it only once you have set aside your retirement sum. Everything you withdraw accrues 2.5% a year, compounded, and comes back to CPF rather than to you when you sell.
CPF is the cheapest money most Singaporeans will ever have access to for a property, and the most misunderstood. Four rules govern it. Get them wrong and you either cannot complete a purchase, or you complete one and discover years later that the sale releases far less cash than you planned around.
1. The Valuation Limit caps ordinary usage
The Valuation Limit is the lower of the purchase price or the market valuation at the time of purchase. It is the ceiling on how much CPF Ordinary Account money you can put into the property under ordinary circumstances. The Withdrawal Limit sits above it at 120% of the Valuation Limit, and is only available once you have set aside the applicable retirement sum.
| Purchase | CPF Ordinary Account usable |
|---|---|
| New flat direct from HDB, on an HDB loan | The full purchase price |
| Resale HDB flat, on an HDB loan | Up to the Valuation Limit; beyond that, up to the loan amount if the Basic Retirement Sum is set aside |
| HDB flat or private property, on a bank loan | Up to the Valuation Limit; then up to 120% of it if the Basic Retirement Sum is set aside |
2. Accrued interest is the number nobody plans for
Every dollar of CPF you withdraw for a property must be refunded to your Ordinary Account when you sell — together with the interest it would have earned had it stayed there. That is 2.5% a year, compounded, for every year of ownership. It is not a penalty and it is not lost: it goes back into your CPF and can be used for the next property. But it is not cash, and it cannot pay a stamp duty bill.
| Years of ownership | Accrued interest | Total refundable to CPF |
|---|---|---|
| 5 years | $32,845 | $282,845 |
| 10 years | $70,015 | $320,015 |
| 15 years | $112,075 | $362,075 |
| 20 years | $159,657 | $409,657 |
| 28 years | $249,300 | $499,300 |
At 2.5% compounding, the doubling time is roughly 28 years. A couple who used $250,000 of CPF on a flat bought fifteen years ago will see $362,075 leave the sale proceeds and land in their CPF accounts. If the flat sells for $680,000 with $180,000 of loan outstanding and 2% in selling costs, the cash that actually reaches their bank account is about $124,400 — not the $500,000 the sale price suggests.
3. A second property requires the retirement sum first
For a second or subsequent property bought from 10 May 2019, you must set aside a retirement sum before any Ordinary Account savings can be used at all:
- The Basic Retirement Sum — if at least one of your properties, either one bought with CPF or the one you are buying, has a lease that covers you to age 95.
- The Full Retirement Sum — if none of them does.
- For members turning 55 in 2026 the Basic Retirement Sum is $110,200 and the Full Retirement Sum is $220,400. The Basic sum is always half the Full sum.
If you later sell the property that provided the cover to age 95, the requirement steps up to the Full Retirement Sum.
4. A short lease reduces, then eliminates, CPF usage
For purchases from 10 May 2019, CPF usage depends on whether the remaining lease covers the youngest owner using CPF to age 95. If it does, you get the full Valuation Limit. If it does not, usage is pro-rated.
| Remaining lease | Age 25 | Age 35 | Age 45 | Age 55 |
|---|---|---|---|---|
| 70 years and above | 100% | 100% | 100% | 100% |
| 60 years | 80% | 100% | 100% | 100% |
| 50 years | 60% | 75% | 100% | 100% |
| 40 years | 40% | 50% | 67% | 100% |
CPF Board’s own worked example: two 25-year-olds buying a flat with 65 years of lease remaining for $550,000 may use up to $495,000, or 90% of the Valuation Limit. Once that pro-rated cap is reached, no further Ordinary Account money can be applied — regardless of whether the retirement sum has been set aside.
The older 30-year threshold, and the "age plus remaining lease of at least 80" test, apply only to purchases made before 10 May 2019.
The rates, as at today
| Rate | Level | Period |
|---|---|---|
| CPF Ordinary Account | 2.50% per annum | 1 July – 30 September 2026 |
| CPF Special / MediSave / Retirement | 4.00% per annum | 1 July – 30 September 2026 |
| HDB concessionary housing loan | 2.60% per annum | 1 July – 30 September 2026 |
The Ordinary Account rate is at its legislated floor of 2.5%, as the pegged rate remains below it. The HDB concessionary loan rate is pegged at the Ordinary Account rate plus 0.1%, which is why the two move together.
Primary sources
Every figure in this article was checked against these on 1 August 2026. If you find one out of date, tell me and I will correct it.
Frequently asked
Every question on financing, cpf & loans- Does the CPF I used for my property come back to me as cash when I sell?
- No. The CPF principal you withdrew, plus accrued interest of 2.5% a year compounded across the whole period of ownership, is refunded to your CPF Ordinary Account rather than to your bank account. You can use it for the next property, but it cannot pay a cash stamp duty bill.
- How much CPF can I use to buy a second property in Singapore?
- For a second or subsequent property bought from 10 May 2019, you must first set aside the Basic Retirement Sum if you have a property whose lease covers you to age 95, or the Full Retirement Sum if you do not. For members turning 55 in 2026 these are $110,200 and $220,400 respectively. A six-month grace period applies if you intend to sell the existing property.
- Can I use CPF for a property with a short remaining lease?
- Only partly. If the remaining lease does not cover the youngest CPF-using owner to age 95, CPF usage is pro-rated as a percentage of the Valuation Limit based on age and remaining lease. Where the remaining lease is 20 years or less, no CPF savings may be used at all.