Use of CPF to finance housing loans

Limits to your CPF funds

There are three types of caps when you use your CPF to repay your housing loan: Valuation Limit, Available Housing Withdrawal Limit, Withdrawal Limit.

Valuation Limit (VL)

You hit this ceiling when the CPF savings used for mortgage repayment are equal to the purchase price or valuation of the property, whichever is lower. When that happens, you will need to have half the prevailing Minimum Sum in your Ordinary Account and/or Special Account before you can use any excess CPF savings.

Available Housing Withdrawal Limit

Beyond the VL, the excess CPF savings available to repay loans are known as the Available Housing Withdrawal Limit (AHWL). The AHWL is a moving limit as it goes up when you have new CPF contributions and goes down when the Minimum Sum increases.

Withdrawal Limit

The AHWL, in turn, is subject to the Withdrawal Limit. This is the maximum amount of CPF funds that can be used for a property. No further CPF funds can be used when the limit is reached. If the housing loan is outstanding when the limit is reached, homeowners will have to use cash for future instalments.