Answer
How Much CPF Can I Use for HDB?
CPF is most people's biggest source of funds for buying an HDB flat. Here's exactly how much you can use — for down payment, stamp duty, and monthly repayments.
Answer: You can use CPF OA up to the Valuation Limit (VL) — that's the purchase price or HDB valuation, whichever is lower. This covers your down payment, stamp duty, and monthly loan repayments. With an HDB loan, up to 80% LTV can come from CPF. With a bank loan, up to 75% LTV — but 5% of the purchase price must be in cash. When you sell, you must refund all CPF used plus 2.5% accrued interest.
What Is the Valuation Limit (VL)?
The VL caps how much CPF you can use over the entire life of the loan. It is the lower of the purchase price or the HDB valuation.
| Scenario | Purchase Price | HDB Valuation | VL (CPF Cap) |
|---|---|---|---|
| Flat A | $500,000 | $500,000 | $500,000 |
| Flat B (above valuation) | $550,000 | $520,000 | $520,000 |
| Flat C (below valuation) | $480,000 | $510,000 | $480,000 |
If you pay above valuation (COV), the amount above valuation must come from cash — not CPF.
What CPF OA Covers
All within the Valuation Limit
| Use | HDB Loan | Bank Loan |
|---|---|---|
| Down payment | 10% — all from CPF OA | 25% — but 5% must be cash |
| Stamp duty (BSD) | Yes, from CPF OA | Yes, from CPF OA |
| Monthly repayment | Yes, from CPF OA | Yes, from CPF OA |
| LTV (max loan) | 80% | 75% |
| Min cash needed | $0 | 5% of price |
Example — $500K HDB with HDB Loan
Purchase price = valuation = $500,000
| Component | Amount | Source |
|---|---|---|
| HDB loan (80%) | $400,000 | Loan |
| Down payment (20%) | $100,000 | CPF OA |
| BSD | $9,600 | CPF OA |
| Monthly repayment (~$1,800/mth) | ongoing | CPF OA |
| Cash needed | $0 | — |
With an HDB loan and sufficient CPF OA balance, you can buy a $500K HDB with zero cash outlay.
CPF Accrued Interest — The Hidden Cost
When you sell your HDB, you must refund all CPF used (principal) plus 2.5% accrued interest back to your CPF OA. This is the interest your CPF would have earned if the money had never left the account.
| CPF Used | Years Held | Accrued Interest (2.5%) | Total Refund |
|---|---|---|---|
| $100,000 | 5 years | ~$13,100 | ~$113,100 |
| $150,000 | 10 years | ~$41,200 | ~$191,200 |
| $200,000 | 15 years | ~$89,300 | ~$289,300 |
Accrued interest compounds on the total CPF principal used (lump sum + monthly). It reduces the cash you walk away with when selling. Use our CPF accrued interest calculator for your exact number.
How much CPF accrued interest will you owe?
Plug in your CPF usage amount and years held to see the exact refund amount when you sell.
FAQ
How much CPF can I use for my HDB flat?
You can use CPF OA up to the Valuation Limit (VL) — which is the purchase price or the valuation of the flat, whichever is lower. This covers your down payment, stamp duty, and monthly loan repayments. There is no dollar cap — the limit is tied to the VL.
What is the Valuation Limit (VL)?
The Valuation Limit is the purchase price or the HDB valuation of the flat, whichever is lower. For example, if you buy an HDB resale flat at $550,000 but the valuation is $520,000, your VL is $520,000. You can use CPF OA up to $520,000 over the life of the loan.
Can I use CPF for monthly HDB loan repayments?
Yes. Both HDB loan and bank loan monthly repayments can be paid from CPF OA, as long as your total CPF usage does not exceed the Valuation Limit. Most HDB owners pay their monthly instalments entirely from CPF OA.
What is CPF accrued interest and do I have to repay it?
When you sell your HDB, you must refund all CPF used (principal) plus 2.5% accrued interest back to your CPF OA. This is not a penalty — it is the interest your CPF OA would have earned if the money had stayed in the account. On $200,000 used over 10 years, the accrued interest is roughly $55,000.
Is there a difference between HDB loan and bank loan CPF usage?
The Valuation Limit applies to both. The main difference is the down payment structure: HDB loan requires 10% down (all payable from CPF), while a bank loan requires 25% down with at least 5% in cash. For monthly repayments, both loan types can be paid from CPF OA.
Related
Last updated Feb 2026. CPF usage rules per CPF Board and HDB. Accrued interest rate is 2.5% p.a. (OA rate). This is informational, not financial advice.