Guide · Singapore
Cash vs CPF for your downpayment
One of the most confusing parts of buying a home in Singapore is how much must be cash and how much you can pay from CPF. With a bank loan you fund 25% of the price yourself — but only part of it can come from CPF. Here's exactly how the split works, what CPF can and can't cover, and a worked example. (Figures assume a 75% bank loan — the typical first-home case.)
The 25% downpayment, split three ways
A bank first loan is capped at 75% of the property's value (the lower of price or valuation), so you pay the other 25% as a downpayment.
That 25% breaks into: a 5% cash minimum (must be cash), and a 20% portion you can pay from CPF Ordinary Account or cash.
On top of that, if your purchase price is above the valuation, the difference — cash-over-valuation (COV) — must also be paid in cash.
What CPF Ordinary Account can pay
The 20% CPF-or-cash portion of the downpayment.
Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD), and your legal/conveyancing fees — though in practice you often pay these first and CPF reimburses you, so you still need the cash on hand at completion.
Your monthly loan instalments, going forward — paying from CPF OA lowers your monthly cash outlay (but also slows how fast your OA grows).
What must be cash
The 5% minimum downpayment.
Any cash-over-valuation (COV) — the amount the price exceeds the valuation.
The property agent's commission and the valuation fee.
In short: CPF helps a lot with the big-ticket items (the 20% and stamp duties), but the 5% floor, COV, and fees come out of pocket.
A worked example
A S$600,000 flat valued at S$600,000, bank loan at 75% (S$450,000): downpayment is S$150,000 — S$30,000 cash (5%) plus S$120,000 from CPF or cash (20%).
Add Buyer's Stamp Duty of about S$12,600 (CPF-eligible), plus legal (~S$2,500), valuation (~S$120), and the agent fee. If your OA covers the S$120,000 + stamp duty + legal, your out-of-pocket cash could be roughly S$30,000 + the cash-only fees.
If the price were S$620,000 against a S$600,000 valuation, the extra S$20,000 COV would be cash on top — and CPF can't help with it.
Good to know before you drain your OA
CPF used for property accrues notional interest you must refund to your OA when you sell — so it's not 'free' money.
There are also CPF withdrawal limits (the Valuation Limit) on how much OA you can put toward a property over the life of the loan.
And keeping a cash and CPF buffer matters: emptying your OA leaves nothing for monthly instalments if your income dips. The calculator factors your buffer into a readiness score.
Frequently asked
Can I pay my whole downpayment with CPF?
No. With a 75% bank loan, at least 5% of the value must be paid in cash. The remaining 20% of the downpayment can come from CPF Ordinary Account or cash.
Can CPF pay the stamp duty?
Yes — CPF OA can be used for Buyer's Stamp Duty and ABSD, as well as legal fees. In practice you often pay at completion and CPF reimburses you, so you still need the cash available first.
Can I use CPF for cash-over-valuation (COV)?
No. COV — the amount the purchase price exceeds the valuation — must be paid in cash. Neither the loan nor CPF can cover it.
Should I use all my CPF for the downpayment?
Not necessarily. CPF used for housing must be refunded with accrued interest when you sell, and draining your OA leaves no cushion for monthly repayments. Many buyers keep a buffer in both cash and CPF.
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See your cash vs CPF split →Estimates only — not financial advice. Final figures depend on the bank’s assessment. Rules current as of 2026-06-10.