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Hi, appreciate your sharing. Yes, base on valuation report you will be aware of it. Looking for which area of HDB ?
4 or 5 room HDB ?
Looking forward to assist you at 9696 4398  or email me at stewartlim96964398@gmail.com

Cheers
Stewart-PropNex (Senior Associate Division Director) Read More

For HDB loan, cannot. For Bank loan, possible to use up to 120% VL.

If doesn't last till youngest buyer is 95, then will be prorated downwards accordingly.

If you are concerned about CPF limits at this stage of the purchase, you might not be making the most financially sound property move...

If you need help with the calculations and figuring out what property is the most optimal choice for your circumstances, I will be happy to walk you through that.

I'm a Harvard graduated real estate agent with a degree in economics, and I have a decade of experience working on Singapore public policy. I would love to schedule a free consultation to discuss your options.

Kay Cloud
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Propnex Realty Pte Ltd
cloud@propnex.com
Tel: (+6.5.) 8.5.6.7.4.5.8.5
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Hi

The cpf usage limit as the name suggests, using your example, means the moment you have utilized 600k from cpf to fund payments related to the house (downpayment, stamp duties, repayments including mortgage interest), you can no longer use CPF OA further for this property. Any amounts beyond have to be in cash. This is a safeguard mechanism in place so that buyers do not overstretch for the property as it is in a sense at the expense of their retirement when they use CPF for housing now.

If the balance lease does not last you until 95 years old, you have to use the cpf calculator to calculate since it will be pro-rated according to their formula.

https://www.cpf.gov.sg/service/article/how-much-cpf-savings-can-i-use-for-my-property-purchase

From the above link, if you are able to set aside your Basic Retirement Sum, you can use CPF OA in excess of BRS, for the hdb loan beyond the valuation limit, or up to 120% of VL.

Hope the above clarifies. I am well-versed with HDB and private property transactions, having helped more than 100 homeowners transit smoothly with their housing plans. Please reach out to me at 97432395  for a more in-depth discussion :)

May I have more info on your requirements so as to make better recommendations? Thanks and looking forward to chat more

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You're absolutely on point in thinking through this — the CPF usage rules can be a bit nuanced, especially when it comes to servicing interest on HDB loans beyond the valuation limit. Here's a clearer breakdown:

1) Can CPF service interest on HDB loans above the Valuation Limit (VL)?

a. Valuation Limit (VL)
This is the maximum CPF you can use for the purchase price of the property — capped at the lower of the flat’s valuation or purchase price.

b. Post-VL: Monthly Repayments (Including Interest)
- If you're taking an HDB loan: You can continue using CPF Ordinary Account (OA) to cover your monthly instalments — this includes both the capital and interest components — even after hitting the VL. You can also continue using CPF to service the loan up to the Withdrawal Limit (WL), which is 120% of the VL, provided you've set aside your Basic Retirement Sum (BRS) or Full Retirement Sum (FRS) as required.

If it's a bank loan: CPF usage for monthly repayments is also allowed, but similarly capped by the WL (120% of VL) and subject to retirement sum requirements.

In Summary

Yes, interest on the HDB loan can be serviced using CPF even after the purchase price limit (VL) has been reached — up to the Withdrawal Limit (WL) — if the property meets the lease-to-95 condition.

If the youngest co-owner's lease coverage falls short of age 95, CPF usage (both for purchase and loan servicing) is pro-rated and limited. Read More

The CPF Valuation Limit (VL) is pegged to the property’s purchase price or market value, whichever is lower. Once you hit the VL, you may continue using CPF to pay for the housing loan (including interest), but only up to the Withdrawal Limit (WL), which is currently 120% of the VL, provided the property’s lease covers the youngest buyer to at least age 95.

Example 1: Property covers youngest buyer to age 95
• Purchase price: $600K
• VL: $600K
• WL: $720K (600K x 120%)
• You may use CPF up to $720K, which includes paying off the loan principal + interest.

Example 2: Property does NOT cover youngest buyer to age 95
• Purchase price: $600K
• CPF usage may be prorated based on remaining lease and buyer’s age.
• You might not be able to reach full VL/WL, and cash top-ups could be required sooner.

I’m Aren Goh from PropNex. If you want a calculated breakdown for your property’s lease, CPF usage and cash requirement timeline, I can run the numbers for you. You can WhatsApp me at 9657 6701  . Read More

1. For HDB loans, CPF usage is restricted; with bank loans, you may tap up to 120% of the property’s Valuation Limit.
2. If the property lease does not cover the youngest buyer until age 95, the CPF amount allowed will be scaled down.
3. Once the CPF Housing Usage Limit is reached (example: \$600k), no further CPF can be used for this property and cash must take over.
4. This rule is meant to protect retirement funds, ensuring buyers do not over-commit housing payments at the cost of their future needs.
5. Always run your figures through the CPF calculator, as proration applies depending on lease balance and age.

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I would be glad to assist you.
Feel free to contact me at wa.me/6597100155
Hope to hear from you soon.
Pei Mobile: (65) 9 7 1 0 0 1 5 5.
Email: peicheng.tan@propnex.com
Associate Group Director
Propnex Realty Pte Ltd Read More

Hi,

1) It is rare in today's context that both income CPF contribution is sufficient to cover the monthly mortgage.
2) But, it is still possible that such situation happened when both are at the higher income level.
3) Yes, you can only utilized up to 100% of the valuation of the unit ($600k) you are buying.
4) The interest ($100k) will have to be paid using cash.
5) If you plan properly, you may choose to use certain amount of cash for the monthly mortgage instead of fully relying on your CPF funds.
6) The funds in your CPF OA account is earning a good and safe interest rate comparing to the cash you put in the bank.
7) If you are using cash of around $334 for the monthly payment for a 25 years tenure, you will not to worry of needing full cash payment for the last few years of the loan tenure.

All The Best!!!

Hope the above answers your main concerns, but if there are more queries, please feel free to contact me at 90110636  or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://www.linkedin.com/in/ckling/
https://agents.huttonsgroup.com/R056727F/

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