Is it better to use CPF to buy a HDB or condo?
With rising home loans interest rates since the last rate hike by the US Fed in July this year, many homeowners in Singapore are beginning to feel the pinch as we prepare to pay higher mortgages.
If youâre one of those looking around to get either a HDB or executive condo (EC) or private condo, you can start comparing home loans interest rates and differences between the three types of housing loans via tools like MoneySmartâs ââhome loan comparison platform, and see which is more suitable for you (and your spouse or family).

What Can You Use CPF To Pay For?
There are several aspects of your home loan which can be paid for using some of your CPF savings. Depending on your average gross monthly household income, youâll also be eligible for certain CPF Housing Grants including the CPF Housing Grant for Resale Flat (Families), Enhanced CPF Housing Grant (For Singles and Families), Step up Housing Grant, Proximity Housing Grant and Half-Housing Grant, and the grant limit ranges from $15,000 to $80,000.
Hereâs a quick rundown of the different phases of payment which you can utilise your CPF savings.
Downpayment
Remaining portion after downpayment
Monthly repayments
Other fees
When you buy a HDB or condo, there are also legal fees, stamp duty, Home Protection Scheme (HPS) fees, valuation fees and other administrative charges which youâll also have to pay for. The buyerâs stamp duty usually ranges about 1% to 4% of the purchase price of the HDB flat or condo - a form of tax payable to the government for registration of purchase of the property. Legal fees are also required to be paid to property lawyers to get the paperwork done for your propertyâs home loan, and banks will usually have their own panel of licensed valuers.
These fees can be paid for with your CPF OA, but youâll most likely need to make these payments upfront first as they are usually done on a reimbursement basis, so youâll need to set aside money for this before CPF reimburses you.
Another important fee is the HPD premium which you pay to insure your home loan in case you do not have a life insurance covering your outstanding home loans. So in the situation of death, terminal illness or total and permanent disability, this HPS will be useful to protect you and your family from losing your flat. The annual HPS premiums can be paid using your CPF OA funds as well.
Compare The Best Home Loan Interest Rates Here
Should I Pay Off a HDB or Condo Home Loan With CPF?
Whether it is HDB or private, leasehold or freehold, youâll need to know the key differences in terms of eligibility and financing. Hereâs a comparison of the 3 types.
HDB | Executive condo | Private condo | |
---|---|---|---|
Category | HDBPublic | Executive condoPrivate (if itâs more than 10 years old) | Private condoPrivate |
Available mortgage type | HDBHDB or bank loan* | Executive condoBank loan* | Private condoBank loan* |
Who is eligible to buy | HDBSingapore citizen or PR for at least 5 years | Executive condoSingapore citizen or PR for at least 5 years | Private condoAnyone |
Minimum occupancy period (MOP) | HDB5 years | Executive condo5 years | Private condoNone |
Lease period | HDB99 years | Executive condo99 years | Private condo99 years to freehold |
Estimated income ceiling | HDB$7,000 to $14,000 | Executive condo$16,000 | Private condoNone |
Eligibility for CPF housing grants | HDBEligible | Executive condoEligible | Private condoNot eligible |
*Subject to Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR) rules. MSR simply refers to the portion of your (as a borrower) gross monthly income that goes towards repaying your property loans, including the loan being applied for. Itâs usually capped at 30% of your gross monthly income, while the TDSR is often less than or equal to 55% and is meant for repaying your monthly debt obligations. | HDB | Private condo |
Types Of Home Loans Available
HDB Loans
This type of loan is only meant for HDB flats and it offers a stable interest rate, which is great for homebuyers who do not have much cash on hand. HDB loans require a smaller downpayment of 10% of the purchase price (compared to bank loans, which is 25% of the purchase price).
Moreover, the HDB loan downpayment can be paid via your CPF OA, without you having to fork out any cash. There are a couple of other advantages of taking up an HDB Loan which we will cover in detail later.
Bank Loans

4 Types of Bank Loans
Floating-rate mortgage loans are pegged to either Singapore Overnight Rate Average (SORA) or Singapore Interbank Offered Rate (SIBOR) rates which are known to the public so thereâs a higher level of transparency as compared to the fixed deposit-linked or board rate loans.
Most floating-rate loans available are 1-month or 3-month, and banks often charge an additional spread on top of it. 1-month SORA and SIBOR home loans have a greater volatility since they change every month while the 3-month SORA and SIBOR ones change every quarterly.
Why You Should Use CPF For Your Housing Loan
Greater flexibility
More savings and cash liquidity
Opportunities for investment
Restrictions of valuation limit
Monthly income requirements
Ownership limitations
Homeowners have to abide by several restrictions on ownership of property such as:
- Not being able to own any private property in the last 30 months, and not being able to take on 2 or more housing loans from HDB.
- Limitations on the amount you can use from your CPF savings to pay is limited by many factors including your monthly repayment must be no more than 30% of your monthly income as it is subject to Mortgage Servicing Ratio (MSR) terms and the Total Debt Servicing Ratio (TDSR) calculation.
- CPF savings not being able to be used for payment of any renovations or home improvements.
Get a free consultation and real-time mortgage rates from our specialist!
Why You Should Use Cash To Pay Off Your Home Loan
More cash flexibility
Lower interest rates
Increments for CPF savings
Research Intensive
More volatile interest rates
Less cash on hand
Should I Buy A Private Property Using CPF?
No income ceiling
Greater flexibility
No restrictions on MOP and lease terms
Frequently Asked Questions
What are CPF Housing Grants?
- The CPF Housing Grants are subsidies provided by the government which are meant to help elevate the costs of paying for a HDB flat or EC. The CPF Housing Grants include the CPF Housing Grant for Resale Flat (Families), Enhanced CPF Housing Grant (For Singles and Families), Step up Housing Grant, Proximity Housing Grant and Half-Housing Grant, and they range from up to $15,000 to up to $80,000.
Which CPF Account can I use to buy a HDB or EC?
- You are only able to use your CPF Ordinary Account (OA) for partial payments of your home loans.
Where can I find the best HDB or EC or private condo home loans?
- If youâre looking to compare loans from many banks at one go, online mortgage brokersâ platforms like MoneySmartâs Home Loans page is a great place to start finding the best home loan rates, whether as it is a public or private housing loan.
Can I use my CPF savings to pay for home renovations?
- No. According to CPFâs terms and conditions for the CPF Housing Scheme, your CPF savings cannot be used for payment of any construction works, improvements, repairs or renovation of your HDB flat or DBSS flat.