The Private Properties Scheme enables CPF members to use their CPF Ordinary Account savings to buy or build private residential properties in Singapore for their own occupation or investment.
Understand
What is Private Properties Scheme (PPS)?
Under PPS, you can use your CPF Ordinary Account (OA) savings to buy or build private residential property for occupation or investment.
4 ways to use CPF for private property
1. Pay the purchase price.
2. Repay the housing loan in part or fully and/or pay for the monthly housing loan instalments taken.
3. Repay the construction loan in part or fully and/or to pay for the monthly construction loan instalments taken to buy land and/or to construct a house on that land.
4. Pay the stamp duty, legal costs, survey fees and other related costs incurred in the private property purchase, refinancing and/or construction of the house.
Am I eligible to use my CPF savings under PPS?
All CPF members who are eligible to buy a private property are eligible to use their CPF savings under PPS.
You are not eligible if:
you are buying a private property with a remaining lease of less than 30 years;
you are buying a private property with a remaining lease of less than 60 but at least 30 years and your age plus the remaining lease of the private property is less than 80 years;
You can check if you are eligible to buy a private property on the URA website. (click here) [ Buying Property in Singapore
When buying a private residential property, there are many factors to consider and look into. You should familiarise yourself with these considerations which may affect your purchase.
Key Considerations
Eligibility
When buying a property, there are many factors to consider and look into.
If you own a HDB flat, a DBSS flat or an Executive Condominium, you have to fulfil the minimum occupation period set by HDB before you can purchase any private residential properties. Visit their website to find out more.
If you are not a Singapore citizen, you have to obtain approval from the Controller of Residential Property in Singapore Land Authority (SLA), before you can buy landed houses including but not limited to strata landed houses.] (click here for more details)
Read the Terms and Conditions to use your CPF to buy a private property.
Evaluate
How much CPF savings can I use?
To help you set aside CPF savings for your retirement years, there are housing limits on the amount of CPF savings you can use to buy a private property.
Valuation Limit (VL) is the purchase price or the value of the private property at the time of purchase, whichever is lower.
Withdrawal Limit (WL) is 120% of the VL. This is the maximum amount of CPF you can use for the private property.
To continue using your CPF beyond VL, up to WL, you need to meet the following requirements:
Below 55 years old: To set aside the current Basic Retirement Sum (BRS) in your Special Account (SA), including the amount withdrawn for investment, and Ordinary Account (OA).
55 years old and above: To meet the BRS in your Retirement Account (RA), SA (including the amount withdrawn for investment) and OA.
The amount of CPF you can use is lower if you are buying a private property with a remaining lease of less than 60 years but at least 30 years. Read more on buying a private property with a remaining lease of less than 60 years.
Try the Property with Less Than 60 Years Lease Calculator to find out the amount you can use for such properties.
Can I use my CPF to buy more than one property?
Yes, you can use your CPF to buy more than one property. However, there are some restrictions in place under the Multiple Property Rule.
If I had bought two private properties, which property will my CPF savings be used to service the monthly instalment first?
If you are using CPF savings to service the housing loan for two private properties, we will deduct from your OA to pay the monthly instalments as requested by you. There is no fixed order of deduction as to which property will be paid first. Please ensure that you have sufficient funds in your CPF account for the monthly instalment deductions.
What will happen to my sale proceeds upon the sale of my private property?
The sale proceeds will be used to pay off the outstanding housing loan taken to buy the private property and the required CPF refund in the order agreed among the owners, financiers and the Board.
How much do I need to refund to my CPF upon the sale of my private property?
If you have used your CPF savings to finance your private property, you will have to refund the following to your CPF account:
the principal CPF amount (P) which you have withdrawn for the private property; and
the accrued interest (I) which you would have earned if the savings were not withdrawn from your CPF account.
If you are 55 years old and above:
You will also need to refund the pledged amount on top of the P and I if you had pledged your property to withdraw your Retirement Account (RA) savings in cash;
The amount refunded to your CPF account will be used to meet your retirement savings up to the Full Retirement Sum (FRS) in your RA. Thereafter, any balance will be paid to you in cash within 1 week from the time the refunds are credited to your CPF account;
You can also choose to retain the balance in your CPF account by writing to us at least 2 weeks before the completion of the sale of your property. Do note that the withdrawal rules for members aged 55 and above will apply subsequently should you want to withdraw these savings;
You can make a request to only refund up to your FRS if you are unable to wait for the pay-out by writing to us at least 2 weeks before the completion of the sale of your property.
Decide
Should I use my CPF to buy private residential properties?
Using your CPF Ordinary Account (OA) savings to finance your private property is an alternative to using cash. However, you should not use all your CPF OA savings to finance your private property. CPF is essentially for your retirement. The more you use for property, the less you may have for retirement.
Do keep in mind:
the other items you are servicing with your CPF OA savings, such as your children’s local tertiary education and insurance premiums; and
the reduced CPF contribution rates as you age.
How can I determine a suitable loan amount, repayment period and repayment amount that is within my financial means?
You can try Our First Home Calculator which provides an estimate of an affordable home price, taking into consideration your gross household income and expenses, as well as the repayment amount and repayment period.
Apply
How do I apply to use my CPF to buy my private property?
1. You will have to authorise your lawyer to submit
an application form to use your CPF savings to buy the private property; and
a valuation report prepared by a licensed valuer
2. You will receive a Letter of Approval.
3. You will have to instruct your lawyer to work with CPF Board’s lawyer to complete the legal documentation.
Your CPF savings will be released to buy the private property after you have:
submitted all legal documentation;
paid the required cash downpayment of at least 5% of the valuation limit; and
paid any balance purchase price after taking into consideration the CPF lumpsum and the housing loan amount.
How can I change my monthly repayment arrangement?
Online using my cpf
Login with your SingPass.
Submit an online application via My Requests - Property.
Your application will be processed by the next working day.
Mail
Download and complete Pay Housing Loan and/or Commence/Revise/Cease Monthly Instalment (PPS Form 4B) (PDF, 0.7MB).
Mail it to:
Central Provident Fund Board
Private Properties
Robinson Rd
P.O. Box 3060
Singapore 905060
Your application will be processed within 7 working days.
How do I make a partial repayment of my housing loan?
If you are using CPF
First, you will have to seek approval from your financier and ensure you have sufficient CPF Ordinary Account savings, subject to the housing limits, for the repayment.
Online using my cpf
Login with your SingPass.
Submit an online application via My Requests - Property.
Your application will be processed within 3 working days.
Mail
Download and complete Pay Housing Loan and/or Commence/Revise/Cease Monthly Instalment (PPS Form 4B) (PDF, 0.7MB).
Mail it to:
Central Provident Fund Board
Private Properties
Robinson Rd
P.O. Box 3060
Singapore 905060
Your application will be processed within 7 working days.
If you are using cash
Please check with your financier on the procedures.
How do I make a full redemption of my housing loan?
If you are using CPF
Seek approval from your financier and ensure you have sufficient CPF Ordinary Account savings for the repayment, subject to the housing limits.
Engage a lawyer to discharge the mortgage on your private property.
Instruct your lawyer to liaise with the Board on the use of your CPF for the full redemption and cessation of the monthly deduction from your CPF account to service the housing loan.
Alternatively, you may submit a request online yourself.
Online using my cpf
Login with your SingPass.
Submit an online application via My Requests - Property.
Your application will be processed within 5 working days.
If you are using cash
Please check with your financier on the procedures.
Understand
What is Private Properties Scheme (PPS)?
Under PPS, you can use your CPF Ordinary Account (OA) savings to buy or build private residential property for occupation or investment.
4 ways to use CPF for private property
1. Pay the purchase price.
2. Repay the housing loan in part or fully and/or pay for the monthly housing loan instalments taken.
3. Repay the construction loan in part or fully and/or to pay for the monthly construction loan instalments taken to buy land and/or to construct a house on that land.
4. Pay the stamp duty, legal costs, survey fees and other related costs incurred in the private property purchase, refinancing and/or construction of the house.
Am I eligible to use my CPF savings under PPS?
All CPF members who are eligible to buy a private property are eligible to use their CPF savings under PPS.
You are not eligible if:
you are buying a private property with a remaining lease of less than 30 years;
you are buying a private property with a remaining lease of less than 60 but at least 30 years and your age plus the remaining lease of the private property is less than 80 years;
You can check if you are eligible to buy a private property on the URA website. (click here) [ Buying Property in Singapore
When buying a private residential property, there are many factors to consider and look into. You should familiarise yourself with these considerations which may affect your purchase.
Key Considerations
Eligibility
When buying a property, there are many factors to consider and look into.
If you own a HDB flat, a DBSS flat or an Executive Condominium, you have to fulfil the minimum occupation period set by HDB before you can purchase any private residential properties. Visit their website to find out more.
If you are not a Singapore citizen, you have to obtain approval from the Controller of Residential Property in Singapore Land Authority (SLA), before you can buy landed houses including but not limited to strata landed houses.] (click here for more details)
Read the Terms and Conditions to use your CPF to buy a private property.
Evaluate
How much CPF savings can I use?
To help you set aside CPF savings for your retirement years, there are housing limits on the amount of CPF savings you can use to buy a private property.
Valuation Limit (VL) is the purchase price or the value of the private property at the time of purchase, whichever is lower.
Withdrawal Limit (WL) is 120% of the VL. This is the maximum amount of CPF you can use for the private property.
To continue using your CPF beyond VL, up to WL, you need to meet the following requirements:
Below 55 years old: To set aside the current Basic Retirement Sum (BRS) in your Special Account (SA), including the amount withdrawn for investment, and Ordinary Account (OA).
55 years old and above: To meet the BRS in your Retirement Account (RA), SA (including the amount withdrawn for investment) and OA.
The amount of CPF you can use is lower if you are buying a private property with a remaining lease of less than 60 years but at least 30 years. Read more on buying a private property with a remaining lease of less than 60 years.
Try the Property with Less Than 60 Years Lease Calculator to find out the amount you can use for such properties.
Can I use my CPF to buy more than one property?
Yes, you can use your CPF to buy more than one property. However, there are some restrictions in place under the Multiple Property Rule.
If I had bought two private properties, which property will my CPF savings be used to service the monthly instalment first?
If you are using CPF savings to service the housing loan for two private properties, we will deduct from your OA to pay the monthly instalments as requested by you. There is no fixed order of deduction as to which property will be paid first. Please ensure that you have sufficient funds in your CPF account for the monthly instalment deductions.
What will happen to my sale proceeds upon the sale of my private property?
The sale proceeds will be used to pay off the outstanding housing loan taken to buy the private property and the required CPF refund in the order agreed among the owners, financiers and the Board.
How much do I need to refund to my CPF upon the sale of my private property?
If you have used your CPF savings to finance your private property, you will have to refund the following to your CPF account:
the principal CPF amount (P) which you have withdrawn for the private property; and
the accrued interest (I) which you would have earned if the savings were not withdrawn from your CPF account.
If you are 55 years old and above:
You will also need to refund the pledged amount on top of the P and I if you had pledged your property to withdraw your Retirement Account (RA) savings in cash;
The amount refunded to your CPF account will be used to meet your retirement savings up to the Full Retirement Sum (FRS) in your RA. Thereafter, any balance will be paid to you in cash within 1 week from the time the refunds are credited to your CPF account;
You can also choose to retain the balance in your CPF account by writing to us at least 2 weeks before the completion of the sale of your property. Do note that the withdrawal rules for members aged 55 and above will apply subsequently should you want to withdraw these savings;
You can make a request to only refund up to your FRS if you are unable to wait for the pay-out by writing to us at least 2 weeks before the completion of the sale of your property.
Decide
Should I use my CPF to buy private residential properties?
Using your CPF Ordinary Account (OA) savings to finance your private property is an alternative to using cash. However, you should not use all your CPF OA savings to finance your private property. CPF is essentially for your retirement. The more you use for property, the less you may have for retirement.
Do keep in mind:
the other items you are servicing with your CPF OA savings, such as your children’s local tertiary education and insurance premiums; and
the reduced CPF contribution rates as you age.
How can I determine a suitable loan amount, repayment period and repayment amount that is within my financial means?
You can try Our First Home Calculator which provides an estimate of an affordable home price, taking into consideration your gross household income and expenses, as well as the repayment amount and repayment period.
Apply
How do I apply to use my CPF to buy my private property?
1. You will have to authorise your lawyer to submit
an application form to use your CPF savings to buy the private property; and
a valuation report prepared by a licensed valuer
2. You will receive a Letter of Approval.
3. You will have to instruct your lawyer to work with CPF Board’s lawyer to complete the legal documentation.
Your CPF savings will be released to buy the private property after you have:
submitted all legal documentation;
paid the required cash downpayment of at least 5% of the valuation limit; and
paid any balance purchase price after taking into consideration the CPF lumpsum and the housing loan amount.
How can I change my monthly repayment arrangement?
Online using my cpf
Login with your SingPass.
Submit an online application via My Requests - Property.
Your application will be processed by the next working day.
Download and complete Pay Housing Loan and/or Commence/Revise/Cease Monthly Instalment (PPS Form 4B) (PDF, 0.7MB).
Mail it to:
Central Provident Fund Board
Private Properties
Robinson Rd
P.O. Box 3060
Singapore 905060
Your application will be processed within 7 working days.
How do I make a partial repayment of my housing loan?
If you are using CPF
First, you will have to seek approval from your financier and ensure you have sufficient CPF Ordinary Account savings, subject to the housing limits, for the repayment.
Online using my cpf
Login with your SingPass.
Submit an online application via My Requests - Property.
Your application will be processed within 3 working days.
Download and complete Pay Housing Loan and/or Commence/Revise/Cease Monthly Instalment (PPS Form 4B) (PDF, 0.7MB).
Mail it to:
Central Provident Fund Board
Private Properties
Robinson Rd
P.O. Box 3060
Singapore 905060
Your application will be processed within 7 working days.
If you are using cash
Please check with your financier on the procedures.
How do I make a full redemption of my housing loan?
If you are using CPF
Seek approval from your financier and ensure you have sufficient CPF Ordinary Account savings for the repayment, subject to the housing limits.
Engage a lawyer to discharge the mortgage on your private property.
Instruct your lawyer to liaise with the Board on the use of your CPF for the full redemption and cessation of the monthly deduction from your CPF account to service the housing loan.
Alternatively, you may submit a request online yourself.
Online using my cpf
Login with your SingPass.
Submit an online application via My Requests - Property.
Your application will be processed within 5 working days.
If you are using cash
Please check with your financier on the procedures.
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