8 Essentials You Should Know When Using Your CPF To Buy House In Singapore

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With the Cost of living in Singapore increasing with every passing day, investing in a residential property is becoming more attractive.

But before you start looking at real estate listings or even think about buying a house, there are a few things you need to know first. Buying a house in Singapore can be daunting if you don’t know what to look for and how to go about it.

Buying your first home is an exciting step in any person’s life. But it can also be stressful and confusing if you don’t know much about real estate or the process involved.

Fortunately, we have compiled some helpful tips to help you along the way so that it doesn’t feel like such an intimidating experience.

What is the CPF?

The Central Provident Fund (CPF) is a savings account and financial institution in Singapore. The CPF is the biggest savings fund in Singapore, offering a variety of investment options for its members, including fixed deposits, term deposits and investment-linked insurance policies.

The CPF is funded mainly by employers and employees with mandatory monthly contributions to the fund.

Employee’s age (years)

Contribution rates from 1 January 2022

(monthly wages > $750)

By employer

(% of wage)

By employee

(% of wage)


(% of wage)

55 and below




Above 55 to 60




Above 60 to 65




Above 65 to 70




Above 70




How to use your CPF to purchase a property in Singapore?

Your OA Ordinary Account savings can go towards your property after you’ve set aside the Basic Retirement Sum in your CPF accounts. This will provide you with a monthly income to help support a basic standard of living during retirement.

Your Ordinary Account (OA) savings can be used for a variety of things related to buying or building a home in Singapore.

For example, OA savings can be used for the downpayment and housing loan for the property purchase, stamp and legal fees, loan for the construction of your house, and purchase of vacant land (for private properties only). Additionally, Home Protection Scheme premiums (for HDB flats only) can be covered with your OA savings.

To do this, simply visit the CPF’s website

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1) Don’t start looking at listings just yet! Before making any moves on buying a property in Singapore, make sure you are financially prepared for the transaction. Check out our article about  Financial Planning for Buying a House in Singapore  to learn more about how to assess your finances before purchasing anything.

2) Consider renting instead If you’re not ready to purchase just yet, consider renting first before investing heavily in real estate purchases. This will give you time to save up money ahead of time while also getting some experience on what it takes to live somewhere else other than with your family or friends. And don’t forget: as long as you stay within the same area of Singapore (as long as it’s not deemed a high density area), there are no restrictions on who you can rent from!

Why You Should Care About The Mortgage Sum Before Buying A House

The mortgage sum you need to pay is an important factor that you should consider before buying a house. This is because the monthly mortgage amount you will be paying will determine how much your payments will be and what the total cost of your property will be.

Know The Minimum Loan Sum You Need To Buy A Property

Buying a property is not as easy as picking a house and then signing the contract. There are many factors that affect the price of a property, including location, construction quality, viewings, and so on.

To give yourself the best chance of buying a property in Singapore, you should know what your loan sum needs to be. A minimum loan sum varies depending on the type of property you’re looking for and area you want to buy it in.

You can find out these loan sums by checking the different loan providers such as banks, credit institutions, or mortgage companies. Once you have all this information, you should adjust your budget accordingly.

Some properties may cost more than your loan sum while others might be less than what you were expecting to pay for it.

Things To Remember When Negotiating A Property Purchase

The first thing you will have to do is choose a property. It is best to look at properties that are within your budget and in your preferred neighborhood.

One of the things you should have before starting negotiations with the seller is a comparative market analysis. This will allow you to compare prices and other relevant factors of similar properties which will help you negotiate a better deal on the purchase price.

Before negotiating, it is important to understand what type of agreement you want from the purchase. There are three different types of agreements that can be made: an unconditional agreement, an agreement subject to contract, or an agreement subject to condition.

In order for you and the seller to agree on a price, it is important for both parties involved in the sale to be aware of their own needs and wants with regards to their respective asking price.

In addition, both parties must be willing to compromise so as not to leave out any important details about how they would like the property purchased To close a deal on the sale of a property, it is important for both parties involved in the negotiation process to have all forms signed by everyone involved in signing off on the deal.


Buying a house is one of the most important and exciting financial decisions you will make in your life. As a result, it’s important to have all the necessary information before you make a purchase.

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