How much CPF savings can I use for my house?

29 Oct 2019 

​​Planning to use your CPF savings to fund your new home? One thing to know is that the amount you can use is subject to CPF housing limits, which are in place to help you set aside savings for your golden years!

Here’s how the housing limits may apply to you:
How much CPF savings can I use for my house.png
Whether or not these limits apply to you depends on the type of property and loan you choose, as well as the remaining lease of the property.

Referring to the table above, here are two terms to know:

1. The Valuation Limit (VL) is the lower of the purchase price or the market value of the property when you bought it. If the remaining lease on the home does not cover the youngest owner till at least the age of 95, CPF savings can only be used up to a pro-rated VL. 

2. The Withdrawal Limit (WL) is 120% of the VL. This is the maximum amount of CPF savings you can use for your house. If you wish to use beyond the VL (up to WL), you need to:

  • Ensure that the home covers the youngest owner till at least the age of 95
  • Set aside the current Basic Retirement Sum (BRS) in your Ordinary Account (OA) and Special Account (SA) if you are below 55, or
  • Meet the BRS in your Retirement Account, SA and OA if you are 55 and above.

Still confused? Let’s look at a few illustrations below:

Claire and Chandra (both aged 25) just got married and are looking to buy their first home. Felix and Hui Min (both aged 35) are looking to buy a new flat to move closer to their parents’ homes. Both couples have their eyes set on a similar flat: A resale HDB flat with 60 years remaining lease with a VL of $500,000.

How much CPF savings can each couple use?

Claire and Chandra: As the remaining lease only covers them up to 85 years old, use of CPF savings is capped at a percentage of the VL. The estimated amount of savings that can be used can be derived at with the CPF Housing Usage Calculator:

If they take up an HDB loan/Bank Loan:
Amount of CPF savings they can use =  $400,000 (80% of the VL)

Felix and Hui Min*: As the remaining lease covers them up to 95 years old, CPF savings can be used up to the VL or applicable WL.

If they take up an HDB loan/Bank loan:
Amount of CPF savings they can use = 100% x VL = $500,000

If they wish to use more OA savings, beyond the VL, they will need to set aside the current BRS. 

If they have taken a bank loan, the maximum amount of CPF savings they can use = 120% X VL = $600,000

If they have taken an HDB loan, they can fully pay off their loan using their OA savings.

*As the property covers them to age 95, they may also apply to withdraw CPF savings above their BRS from the age of 55.

To estimate how much CPF savings you can use to finance your home, simply use the CPF Housing Withdrawal Limits Calculator and the CPF Housing Usage Calculator. Knowing just how much CPF you can use for housing will help you better plan your cashflow in the years ahead.

Information accurate as at 29/10/2019.

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