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Guidelines On Use Of Central Provident Fund (CPF) |
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Real Estate Self Help -
Guidelines On Use Of Central Provident Fund (CPF)
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You can use your CPF and cash savings, and a housing/mortgage loan to finance your property purchase.
From 19 July 2005, the maximum housing loan for private properties and HDB flats should not exceed 90% of the purchase price or valuation of the property, whichever is lower.
| HDB flat using concessionary loan | CPF Ordinary Account savings can be used to pay the full downpayment | | HDB flat using a bank loan | Flat buyers must pay a percentage of the downpayment in cash**. The balance can be paid using CPF | | Private property using a bank loan | From 19 July 2005, CPF can be used to pay the purchase price of the property after paying the first 5% of the purchase price in cash.***
If you are buying an Executive Condominium and are eligible for the Housing Grant, you can use the grant to pay the purchase price before the 5% cash payment is paid. CPF may only be used after you have paid the 5% cash payment. | ** Cash downpayment of 2% for flats bought in 2004; 4% in 2005; 5% from 1 Jan 2006 onwards.
*** Prior to 19 July 2005, 10% cash downpayment had to be first paid, before CPF could be used for the second 10% downpayment. Find out more about Using Your CPF | EastLiving's Mortgage Loan calculator
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