CPF OA, the Central Provident Fund Ordinary Account, can be used for a property down payment and monthly instalments and earns 2.5 percent interest a year. Any OA used for a property, plus the accrued interest, must be refunded to CPF when the property is sold.

What is CPF OA? — Singapore property glossary

What is CPF OA? CPF OA, the Central Provident Fund Ordinary Account, is a Singaporean's compulsory savings account that can be used for housing, education and investments, and earns 2.5 percent interest a year. When OA savings are used for a property, the principal plus accrued interest must be refunded to the account when the property is sold.

CPF OA is one of three CPF accounts, alongside the Special Account and MediSave, but it is the only one that can be used directly for a property down payment or monthly mortgage instalments.

For an HDB flat financed with an HDB loan, there is no cap on how much OA can be used beyond the loan amount itself. For a private property, CPF usage is capped by the Valuation Limit and Withdrawal Limit, two separate ceilings that restrict how much OA can go toward the purchase, particularly once the required retirement sum has not yet been set aside.

Because OA earns 2.5 percent a year, using it for property is not free money, the same 2.5 percent accrues as a liability owed back to CPF on sale, which reduces net cash proceeds compared with financing the same purchase in cash.

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Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.

CPF OA

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