CPF Housing & HPS
The definitive guide to using CPF for property and protecting your home. Master HDB and private property rules, withdrawal limits, accrued interest, and Home Protection Scheme coverage.
CPF Housing & HPS Overview
Your CPF Ordinary Account (OA) is one of Singapore's most powerful tools for homeownership. Combined with the Home Protection Scheme (HPS), you get both financing and protection for your family's home. This guide covers everything you need to know for 2026-2026.
For housing use
Accrued interest rate
Max HPS coverage
HPS coverage limit
What This Guide Covers
- ✓ CPF usage for HDB and private property
- ✓ Withdrawal limits and valuation rules
- ✓ Accrued interest calculations
- ✓ Property pledge and retirement impact
- ✓ Home Protection Scheme coverage
- ✓ 2026 HPS premium tables
- ✓ HPS vs private insurance comparison
- ✓ Optimization strategies
Key Updates for 2026-2026
Retirement Sum Updates (2026)
These amounts affect how much CPF you can use for private property.
CPF Interest Rates (2026)
First $60K earns additional 1%, up to 6% total for SA/MA/RA.
HDB Loan Rate (2026)
HDB loan rate is pegged to CPF OA rate. Bank loans currently range from 3.0-4.0%.
Property Cooling Measures (2024-2026)
- • ABSD for Singapore Citizens (1st property): 0%
- • ABSD for Singapore Citizens (2nd property): 20%
- • ABSD for PRs (1st property): 5%
- • ABSD for PRs (2nd property): 30%
- • ABSD for Foreigners: 60%
Using CPF for HDB Flat
HDB Flat Purchase
More flexible CPF usage rules with government support
What CPF Covers
- • Downpayment (up to full amount with HDB loan)
- • Monthly HDB loan repayment
- • Buyer's Stamp Duty (BSD)
- • Legal and conveyancing fees
- • Home Protection Scheme premium
- • Fire insurance premium
Key Rules
- • Up to Valuation Limit (VL) only
- • VL = lower of price or valuation
- • No BRS set-aside required
- • Remaining lease must cover youngest buyer to age 95
- • HPS is compulsory with HDB loan
HDB Loan vs Bank Loan: CPF Usage
| Factor | HDB Loan | Bank Loan |
|---|---|---|
| Interest Rate (2026) | 2.6% fixed | 3.0-4.0% (variable) |
| LTV Ratio | Up to 80% | Up to 75% |
| Downpayment | 20% (100% CPF OK) | 25% (5% cash mandatory) |
| Max Tenure | 25 years | 30 years |
| Early Repayment | No penalty | Lock-in penalties |
| HPS Required | Yes (compulsory) | No (arrange own insurance) |
| Income Ceiling | $14,000 (family) | No limit |
Pro Tip: When to Choose HDB Loan
For most first-time HDB buyers, HDB loan is the better choice in 2026. The 2.6% fixed rate offers stability when bank rates are 3-4%. You get higher LTV (80% vs 75%), can use 100% CPF for downpayment, and have no lock-in penalties. Consider bank loan only if you plan aggressive early repayment or bank rates drop significantly below HDB rate.
Using CPF for Private Property
Private Property Purchase
Stricter rules to protect retirement savings
What CPF Covers
- • Part of downpayment (up to 20%)
- • Monthly bank loan repayment
- • Buyer's Stamp Duty (BSD)
- • Legal and conveyancing fees
Key Requirements
- • 5% cash downpayment mandatory
- • Must meet BRS ($102,900) first
- • Remaining lease to age 95
- • No HPS (arrange own insurance)
⚠️ Basic Retirement Sum Requirement
For private property, you must set aside the Basic Retirement Sum (BRS) in your CPF before using OA for housing. As of 2026:
This protects your retirement adequacy. Only CPF above BRS can be used for private property.
Step-by-Step: CPF for Private Property
Check Your CPF Balance
Log in to CPF website. Note your OA balance and whether you meet BRS. If OA + SA combined doesn't meet BRS, you may not be able to use CPF for private property.
Check Remaining Lease
For leasehold property, remaining lease must cover youngest buyer to age 95. Shorter leases mean reduced CPF usage.
Calculate Withdrawal Limit
Maximum CPF = Lower of (Purchase Price or Valuation). You can use up to this Valuation Limit (VL) after setting aside BRS.
Prepare Cash Component
Minimum 5% of purchase price must be in cash. Cannot use CPF for this portion. Remaining 20% can be CPF + cash.
CPF Housing Withdrawal Limits
| Property Type | Withdrawal Limit | BRS Required? | Cash Downpayment |
|---|---|---|---|
| HDB (HDB loan) | Up to Valuation Limit | No | 0% |
| HDB (bank loan) | Up to Valuation Limit | No | 5% |
| Private (1st property) | Up to Valuation Limit | Yes | 5% |
| Private (2nd property) | More restricted | Yes + More | 25% |
Understanding Valuation Limit (VL)
Example 1: Purchase Below Valuation
- Purchase Price: $500,000
- Market Valuation: $550,000
- VL = $500,000 (lower amount)
Example 2: Purchase Above Valuation
- Purchase Price: $600,000
- Market Valuation: $550,000
- VL = $550,000 (lower amount)
- Remaining $50,000 must be cash!
Lease-Based Withdrawal Limit
For leasehold properties with shorter remaining lease, CPF usage is prorated. If remaining lease doesn't cover buyer to age 95, maximum CPF is calculated as: (Remaining Lease / Lease to Cover to Age 95) x VL.
Understanding Accrued Interest
When you use CPF for housing, you're essentially borrowing from your retirement savings. Accrued interest compensates for the returns your CPF would have earned if it stayed in your account.
⚠️ The Hidden Cost of Using CPF for Housing
Accrued interest compounds at 2.5% annually. Over 20-30 years, this can add up to 50-80% of the principal amount used!
| CPF Used | After 10 Years | After 20 Years | After 30 Years |
|---|---|---|---|
| $100,000 | $128,008 | $163,862 | $209,757 |
| $200,000 | $256,016 | $327,724 | $419,514 |
| $300,000 | $384,024 | $491,586 | $629,271 |
When Must You Refund Accrued Interest?
Must Refund When:
- • Selling the property
- • Transferring ownership
- • Discharging the mortgage
- • Renting out entire HDB flat
- • Downgrading to smaller property
What If Sale Proceeds Insufficient?
- • Only refund what you receive
- • No need to top up from other sources
- • Shortfall is written off
- • But your CPF balance is lower
Strategy: Voluntary Housing Refunds
You can make voluntary refunds to your CPF OA anytime. This reduces your accrued interest burden and increases your retirement savings. Consider doing this if you have excess cash and want to optimize for retirement.
Home Protection Scheme (HPS)
Home Protection Scheme
Government-administered HDB mortgage insurance
HPS is a mortgage-reducing term assurance that protects you and your family against losing your HDB flat if you die, suffer terminal illness, or become permanently incapacitated before your housing loan is fully paid.
Maximum coverage
Coverage until
Premium payment
HPS Coverage Details
Death Coverage
HPS pays off the outstanding housing loan if the insured member passes away. Family keeps the home without mortgage burden.
Terminal Illness Coverage
If diagnosed with terminal illness (life expectancy of 12 months or less), HPS pays off the outstanding loan.
Permanent Incapacity Coverage
If permanently unable to work due to illness or accident, HPS pays off the outstanding loan.
Who Must Have HPS?
HPS is compulsory for CPF members who use CPF to pay for their HDB housing loan and are below age 65. For joint owners, each person using CPF for the loan must be covered.
HPS vs Private Mortgage Insurance
| Feature | HPS | Private Insurance |
|---|---|---|
| Premium Cost | Lower | Usually higher |
| Maximum Coverage | $600,000 | Unlimited |
| Coverage Age Limit | Until age 65 | Until 75-99 |
| Property Types | HDB only | All properties |
| MediSave Payable | Yes (100%) | Limited |
| Medical Underwriting | None | Required |
| Additional Benefits | None | CI, disability riders |
| Cash Value | None (term) | Possible (whole life) |
When to Stay with HPS
- • HDB flat with HDB loan
- • Coverage under $600,000
- • Will pay off loan before age 65
- • Want lowest cost option
- • Have health conditions (no underwriting)
When to Consider Private Insurance
- • Private property (HPS not available)
- • Need coverage above $600,000
- • Need coverage beyond age 65
- • Want additional CI or disability coverage
- • Want cash value accumulation
⚠️ HPS Exemption Warning
Before applying for HPS exemption to use private insurance, compare total lifetime premiums carefully. HPS is often cheaper because it's government-administered with no profit motive. Private insurance may cost 50-100% more for equivalent coverage.
Accrued Interest Calculator
Calculate how much accrued interest you'll owe when you sell your property. This helps you plan for the true cost of using CPF for housing.
CPF Housing Optimization Strategies
1. Minimize CPF Usage When Possible
If you have cash available, consider using more cash and less CPF for housing. Your SA earns 4% guaranteed, which often beats the return on property appreciation minus accrued interest.
Example: Using $100,000 cash instead of CPF saves you ~$64,000 in accrued interest over 20 years, while your SA earns ~$119,000 in interest (4% compounded).
2. Make Voluntary Housing Refunds
If you have excess cash, consider making voluntary refunds to your CPF OA. This reduces accrued interest and boosts your retirement savings.
- • Log in to CPF website to make refunds
- • Any amount can be refunded anytime
- • Refunded amount earns 2.5% OA interest
3. Consider OA to SA Transfer
If you don't need all your OA for housing, transfer excess to SA to earn 4% instead of 2.5%. But note: SA transfers are irreversible and can't be used for housing later.
Warning: Only transfer what you're sure you won't need for housing. Once in SA, it can only be used for retirement, investment, or approved education/medical expenses.
4. Review HPS Coverage Regularly
As your loan balance decreases, your HPS coverage automatically adjusts. If you've significantly paid down your loan, review if your coverage is still appropriate.
- • Check CPF statement for current HPS coverage
- • Ensure coverage matches outstanding loan
- • Consider private insurance for additional protection
Frequently Asked Questions
Can I use CPF for property overseas?
No, CPF can only be used for property in Singapore. Overseas properties must be financed through other means (cash, bank loans, etc.).
What happens if I rent out my HDB flat?
If you rent out the entire HDB flat, you must refund all CPF used plus accrued interest. Renting out rooms only (subletting) is allowed without refund, subject to HDB approval.
Can I use my spouse's CPF for our property?
Yes, both co-owners can use their respective CPF OA for the jointly owned property. Each person's usage is subject to their individual withdrawal limits and accrued interest calculations.
Does HPS cover bank loans for HDB flats?
No, HPS only covers HDB housing loans. If you have a bank loan for your HDB flat, you are not covered by HPS and should arrange your own mortgage protection insurance.
What if my HPS coverage is less than my outstanding loan?
HPS pays up to the sum insured. If your outstanding loan exceeds coverage, the balance remains payable. You can increase HPS coverage (up to $600,000 max) or supplement with private insurance.
Can I switch from HDB loan to bank loan?
Yes, you can refinance from HDB loan to bank loan. However, HPS coverage will cease, and you'll need to arrange private mortgage insurance. Note that you cannot switch back to HDB loan once you've taken a bank loan.
What if I sell my property at a loss?
If sale proceeds are insufficient to cover CPF principal + accrued interest, you only refund what you receive. The shortfall is not required to be topped up from other sources, but your CPF balance will be lower.
Sources and further reading
Official sources and references for rules, rates, and schemes discussed on this page. Numbers on this site may be rounded or illustrative; confirm current terms with the relevant agency, CPF Board, insurer, or lender.
- Home Protection Scheme (HPS) CPF Board mortgage-reducing insurance for HDB. CPF Board — HPS
- HDB fire insurance vs HPS HDB arrangements for building and loan protection. HDB — Fire insurance