What CPF-OA can pay for

  • The downpayment (partially or fully, depending on loan type).
  • Monthly loan instalments, instead of paying in cash.
  • Stamp duty and legal fees.

The Withdrawal Limit and Valuation Limit

There are two caps on CPF usage: the Valuation Limit (generally the purchase price or valuation, whichever is lower) and the Withdrawal Limit (a higher ceiling that allows further CPF use once you've met certain conditions, such as setting aside your Basic Retirement Sum). Once you hit the Valuation Limit, you also need to start setting aside CPF savings for retirement before drawing further.

Remaining lease matters

CPF usage is tied to whether the flat's remaining lease can cover the youngest buyer until at least age 95. If it can't, your CPF usage is pro-rated based on the proportion of your life the lease does cover — this is a major reason older resale flats with short remaining leases can be harder to finance fully with CPF.

Tip

If you're eyeing an older flat, check the exact remaining lease and run it against the youngest buyer's age before you get attached to the unit — a lease that looks fine on paper can trigger a CPF usage haircut you didn't budget for.

Retirement Sum set-asides

Depending on your age and how much CPF you're using, you may need to set aside part of your Basic Retirement Sum in your CPF accounts before using further CPF for the flat, or pledge the property, particularly for buyers closer to retirement age.