Estimate how much CPF Ordinary Account savings you can use to buy a Singapore property, and the accrued interest you’ll need to refund when you sell.
You can use your CPF Ordinary Account savings to pay for a Singapore residential property — for the downpayment, stamp duty, and monthly mortgage instalments. However, there are limits. The Valuation Limit (VL) is the lower of the purchase price or the market valuation at the time of purchase. The Withdrawal Limit (WL) is 120% of the VL — the maximum CPF you can ever use for that property.
When you eventually sell the property, you must refund to your CPF the amount you withdrew plus accrued interest at 2.5% p.a. (the OA rate). This refund goes back into your OA and SA. It is not a tax or penalty — it’s your own retirement savings being returned. The refund requirement means that even if you sell at a loss, the CPF refund is still required from the sale proceeds (and any shortfall must be made up in cash).
Members who have not yet set aside the Full Retirement Sum (FRS) in their RA may be required to top up to the FRS from the sale proceeds before keeping the rest. Members who have pledged their property to meet BRS are also subject to specific refund rules on sale.