CPF Mortgage Guide
Everything you need to know about CPF-OA mortgage payments: what counts, what the limits are, what accrued interest means for you, and how to update your instalment after refinancing.
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The one-page checklist covering CPF withdrawal limits, accrued interest tracker, and the step-by-step process to update your Monthly Instalment — so nothing falls through the cracks after refinancing.
Your CPF Ordinary Account (OA) can be used to pay the monthly mortgage instalment on your home loan. This applies to:
The process is automatic once set up. Your bank notifies CPF of the approved Monthly Instalment (MI) amount. CPF deducts that amount from your OA on a monthly basis and transfers it to the bank. Any shortfall between your OA balance and the instalment must be topped up in cash.
CPF-OA cannot be used for:
There are two important caps on how much CPF you can use for a property over its lifetime.
Valuation Limit (VL)
The lower of the property's purchase price or market valuation at the time of purchase. This is the reference figure for calculating how much CPF can be used. If you paid $850,000 for a property valued at $820,000, your VL is $820,000.
Withdrawal Limit (WL) = 120% of VL
The absolute cap on total CPF withdrawals across all co-owners for that property. Once reached, you must pay all future instalments in cash. On a $1M property (VL = $1M), the WL is $1.2M.
| Property Value (VL) | Withdrawal Limit (120%) | Additional CPF buffer |
|---|---|---|
| $600,000 | $720,000 | $120,000 |
| $800,000 | $960,000 | $160,000 |
| $1,000,000 | $1,200,000 | $200,000 |
| $1,500,000 | $1,800,000 | $300,000 |
Note: For properties purchased without sufficient Retirement Sum set aside (for owners 55+), CPF usage may be further restricted. Check CPF Board's online calculator for your specific situation.
The CPF Board charges interest on every dollar you withdraw from your OA for property, at the current OA rate of 2.5% per annum. This is called accrued interest and it compounds annually.
Accrued interest is not a penalty — it represents the interest your money would have earned had it stayed in your OA. The logic is that CPF is a retirement fund; when you use it early, you owe it back with interest when you sell.
Illustrative example: $500,000 CPF used over 10 years at 2.5% p.a.
Illustrative only. Actual figure depends on timing of withdrawals, partial repayments, and compounding. The CPF Board's online portal shows your exact accrued interest balance.
On sale, the CPF return (principal + accrued interest) is deducted from your sale proceeds before you receive cash. If the sale price is insufficient to cover the mortgage outstanding and the CPF return, you may receive little or no cash from the sale — or in rare cases, need to top up in cash. This is why running the numbers before selling matters.
CPF does not automatically update when you refinance, reprice, or make a partial prepayment. You must update your Monthly Instalment manually — otherwise CPF continues deducting the old amount.
When you need to update your MI:
Step-by-step: updating via my.cpf.gov.sg
Log in to my.cpf.gov.sg using Singpass.
Navigate to My Requests (top menu).
Select Property, then Change Monthly Instalment for Housing Loan.
Select the property (by address) you want to update.
Enter the new Monthly Instalment amount as stated in your bank's letter or loan schedule.
Confirm and submit. The change takes effect in the next CPF deduction cycle (typically by the following month).
What if your OA balance is lower than the new instalment?
CPF will deduct whatever is available in your OA, and the shortfall must be paid in cash directly to the bank. Your bank will contact you for the cash portion. Keeping some buffer in your OA avoids this.
When you turn 55, the CPF Board automatically creates a Retirement Account (RA) by pooling funds from your SA and OA. You must set aside the Full Retirement Sum (FRS) (or at minimum the Basic Retirement Sum (BRS) if you own property) before you can continue using OA for property.
At 55, check:
The BRS amount changes annually. Check the current figure at cpf.gov.sg before planning around it.
Yes. Both co-owners can contribute CPF-OA towards the same property's monthly instalment, provided the combined usage does not exceed the property's Withdrawal Limit. Each owner's CPF usage and accrued interest is tracked separately.
When you sell, the CPF Board requires the return of all CPF used (principal) plus accrued interest into your OA. This is deducted from the sale proceeds before you receive your cash. Any excess above what you owe goes to you in cash.
Yes. You can reduce or stop CPF usage for your mortgage at any time by updating your Monthly Instalment to a lower amount (or $0) in my.cpf.gov.sg. You would then pay the full instalment in cash to your bank. This is sometimes done to preserve OA balance for retirement or to reduce accrued interest.
Yes. Accrued interest accrues only on amounts actually withdrawn. If you use less CPF for your mortgage (paying more cash), the total accrued interest you owe on sale will be lower, and you will retain more cash from the sale.
Log into my.cpf.gov.sg with Singpass and go to My Statement > Section C (Property). This shows total CPF used, accrued interest to date, current Monthly Instalment, and remaining withdrawal capacity for each property.
Important Disclaimer
This guide is provided for general educational purposes only. It does not constitute financial advice, CPF advice, or legal advice. CPF rules, withdrawal limits, interest rates, and retirement sum requirements are set by the CPF Board and are subject to change without notice.
All figures and examples are illustrative. Your actual CPF balances, withdrawal limits, accrued interest, and mortgage position will depend on your individual circumstances. Always verify current figures directly on my.cpf.gov.sg.
You should seek independent advice from a licensed financial adviser and/or the CPF Board before making decisions about CPF usage. Joanne Low (CEA Reg. No. R062312E) is a licensed real estate salesperson and is not a financial adviser.
Before you make a move, it helps to know exactly how much you'll net after CPF returns. Let's run the numbers together.
WhatsApp JoanneCEA Reg. No. R062312E · Huttons Asia Pte Ltd