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How To Use CPF To Pay For Your Private Property Purchase

Buying a house and having issues? Did you know that you can use CPF to pay for your private property?

Here we have some tips for you on how you can use your CPF account to finance your private property purchase, whether for staying or investment purposes.

However, there are still some ground rules that the CPF does to go about with it. This scheme is a Private Property Scheme or more commonly known as PPS.

  • You are buying a property with remaining lease of less than 30 years
  • You are buying a property with a remaining lease of between 30 and 60 years and your age plus the remaining lease of the property is less than 80 years
  • You are a single person buying a private property with a non-related single and you have used CPF for an existing property
  • You are a married person buying a property with a non-related single

There are limits on the amount of CPF savings you can use to buy a private residential property

  • Valuation Limit (VL) is the purchase price or the value of the private property at the time of purchase, whichever is lower.
  • Withdrawal Limit (WL) is 120% of the VL. This is the maximum amount of CPF you can use for the private property.

To use your CPF beyond VL and up to WL, you need to meet the following requirements:

Below 55 years old: To set aside the current Basic Retirement Sum (BRS) in your Special Account (SA), including the amount withdrawn for investment and OA

55 years and above: To meet the BRS in your Retirement Account (RA), SA (including the amount withdrawn for investment) and OA

Basic Retirement Sum​
Age 55 in 2016 $80,500​
Age 55 in 2017​ $83,000
Age 55 in 2018 $85,500​
Age 55 in 2019 $88,000
Age 55 in 2020 $90,500

Here are the steps layout for you:

Step 1: You first need to authorise your lawyer to submit the application form to use your CPF savings to buy the private property and a valuation report prepared by a licensed valuer.

Step 2: Upon approval, you will receive your Letter of Approval.

Step 3: Your lawyer will then need to work with the CPF Board’s lawyer to complete the required legal documentation.

Step 4: You need to pay the cash down payment of at least 5% of the Valuation Limit and any balance purchase price after taking into consideration the lump sum CPF  and the housing loan amount.

Step 5: Upon fulfilling the prior steps, your CPF savings will be released.


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