Using CPF for property nvestment

What are the criteria required to be able to use CPF savings to buy a home?

For Private Property - As long as you are not an undischarged bankrupt, you can withdraw all your CPF savings in the Ordinary Account and the monthly CPF contributions that are paid into your Ordinary Account for the purchase of the property and/or payment towards your housing loan subject to the prescribed limit.

You can use your Ordinary Account savings, and the future monthly CPF contributions in this account to buy a property and/ or to pay the monthly instalments of the housing loan up to 100% of the Valuation Limit (VL). The VL is the lower of the purchase price or the value of the property at the time of purchase.

If your housing loan is still outstanding when your total CPF withdrawals towards payment of the property had reached the Valuation Limit, you may continue to use your CPF savings up to the applicable Housing Withdrawal Limit to repay the housing loan, provided you are able to set aside half of the prevailing Minimum Sum.

You may use your CPF to pay the purchase price of the property after you have paid the first 5% of the purchase price in cash.

What important factors should you be aware of when using CPF to repay a housing loan?

In addition to the CPF housing withdrawal limits which define the amount of CPF that can be used for housing, members should also be aware of factors like the CPF Minimum Sum requirements when they reach 55 years old, the effect of changes in housing loan interest rates, reductions in the amount of contributions to the Ordinary Account as they get older, etc.

Private Property

Before you sell, mortgage or transfer your private property, you must obtain the consent of the Board. When the property you have bought with CPF is sold or transferred when you are below the age of 55, you have to return the CPF savings you have withdrawn as well as the accrued interest to your CPF account.