Buying your first condo in Singapore is a milestone worth celebrating—but financing it can feel daunting. Fortunately, the Central Provident Fund (CPF) offers powerful tools to ease your cash flow and reduce upfront cash outlay. In this guide, you’ll discover:

How to use CPF OA for downpayment and monthly mortgage (“CPF condo use”)
Key limits and rules for “first condo CPF” purchases
Concrete calculations and a downloadable table to illustrate different price scenarios
Pro tips from a property agent to optimise your CPF usage and budget effectively

Let’s dive in.

1. Understanding CPF OA and Approved Housing Uses

Your CPF Ordinary Account (OA) is one of three sub-accounts in your CPF. It accumulates contributions from both you and your employer, and can be used for:

Property Purchase – Reserved for HDB flats and private properties
Education – Tuition fees for approved institutions
Investment – Through the CPF Investment Scheme

For private condos, CPF OA funds can cover:

Downpayment (up to 20% of purchase price)
Monthly mortgage instalments, subject to remaining balance rules

2. Eligibility for CPF Usage on Your First Condo

Before tapping into your CPF OA, ensure you meet these criteria:

Singapore Citizen or PR: Only Singapore Citizens or PRs can use CPF for property
Minimum Age: You must be at least 21 years old
Property Type: First-timer conditions apply if you don’t own any private residential property
Loan-to-Value (LTV) Compliance: Adhere to LTV limits set by MAS

If you’ve never owned a private condo, you qualify as a “first condo CPF” buyer and can leverage the full benefits of CPF for up to 100% of your required downpayment.

3. Key Limits When Using CPF for Condos

A. Initial Downpayment

Mandatory Cash Portion: 5% of purchase price in cash
CPF OA Portion: Up to the remaining 15% for a first-timer (total 20% downpayment)

B. Loan-to-Value (LTV) and Remaining CPF Balance

Max LTV: 75% for first-timers with no prior property loans
CPF OA Balance: After paying downpayment, you must maintain the Minimum Sum in CPF until withdrawal conditions are met

C. Mortgage Servicing Ratio (MSR)

MSR for HDB loans: capped at 30% of your gross income
Private condo loans are evaluated under TDSR (Total Debt Servicing Ratio), i.e. 75%, not MSR

4. Step-by-Step CPF Usage for Your First Condo

4.1 Determine Your Downpayment

Calculate 20% of the condo price.
Set aside 5% in cash for mandatory initial payment.
Use up to 15% from CPF OA.

Example:
Price: S$1,200,000
20% Downpayment: S$240,000
Cash: S$60,000 (5%)
CPF OA: S$180,000 (15%)

4.2 Check Your CPF OA Balance

Log in to My CPF to see your available OA balance. This determines how much you can actually use toward the 15% portion.

4.3 Calculate Remaining Cash Requirement

Formula:
Cash Needed = 5% of Property Price + max (15% of Price − CPF OA Balance)

5. CPF Usage Scenarios Table

Below is a table illustrating how much CPF OA and cash you’d need across different price points, assuming an OA balance of S$100,000.

6. Monthly Mortgage Payments and CPF

After downpayment, your home loan covers the remaining price:

Loan amount = 80% of purchase price (for first-timer, max LTV = 75 to 80%)
You may continue using CPF OA for monthly instalments until age 55, provided you have sufficient balance after reserving the Minimum Sum.

Tip: Monitor your CPF OA growth to ensure you can service the mortgage for the first few years before considering cash top-ups if rates rise.

7. Additional Considerations

Reserving Your CPF
You must set aside the prevailing Basic Retirement Sum (BRS) plus accrued interest in your OA if you wish to use it beyond age 55.
Interest Rates
CPF OA currently credits 2.5% p.a. Compare this to bank fixed or floating rates to decide if you should use CPF or cash.
Changing Loans
Refinancing mid-loan may affect your CPF usage terms—check with your bank and CPF Board.

8. Pro Tips from Your Property Agent

Build Cash Buffer: Even if you plan to use CPF, keep emergency funds to cover shortfalls or unexpected expenses.
Time Your Purchase: CPF OA contributions post-purchase can help rebuild your OA for mortgage servicing.
Consult Early: Engage a property agent (that’s me!) to run precise CPF calculations based on your actual balances and income.

Conclusion

Leveraging CPF condo use strategies can significantly lower your upfront cash outlay when buying your first condo. By understanding downpayment caps, maintaining your CPF Minimum Sum, and planning monthly instalments, you set yourself up for a smooth purchase journey.

Feel free to reach out for personalised CPF planning or to tour the latest condo developments tailored to your budget. Happy house-hunting!

How to Leverage CPF for Your First Condo Purchase