Last Updated on June 14, 2023 by Tree of Wealth

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Many Singaporeans who own properties and have taken out loans from the Housing and Development Board to pay for them will be required to pay off those housing loans by making monthly payments. These monthly payments towards the loan are deducted directly from the owner’s CPF Ordinary Account (also known as OA), and as a result, many homeowners would like to know the ins and outs of how it will be withdrawn from their OA.

Basic information on deductions

Your monthly deductions are based on the loan quantum and term (how much and how long), and the total deductions to be made will not exceed the monthly repayment amount agreed upon between you and the financier. The period of time in which deductions are made will also vary based on the type of property you own. Owners of HDB flats purchased with HDB loans will see withdrawals made from their Ordinary Account between the 6th and 12th of every month; this is the same for any upgrades made to your flat as well. For HDB flats made via bank loans, withdrawals are made between the 11th and 14th of every month. Finally, for any private properties or executive condominiums, deductions will be made either on the first or last day of the month.

CPF will not inform bank account owners if there are insufficient funds in the bank account, although withdrawal amounts can be viewed on statements accessible via myCPF on the CPF Board portal. There are also no penalties invoked by CPF for insufficient funds, although there may be from your financing institution or mortgagee. Additionally, you can make a voluntary contribution to top-up your CPF account, which is in turn portioned into the different CPF accounts you have – do note that you will need to deposit more to ensure that the appropriate amount is sent to the Ordinary Account, which is the only one that can be used for housing payments. You can also make direct payments in cash to the Housing and Development Board or the bank instead, to make up for the shortfall. In the case that you’ve made cash payments but would like them to be withdrawn from your CPF instead once it has been topped up, you may apply to do so, but do note that refunds of cash payments that have already been made are not guaranteed, and you will need to seek approval from your mortgagee. Depending on your financier, the cash may also be refunded before applying to make payments via your CPF Ordinary Account.

Do note that even if you have a co-owner and even if they are paying housing loans, CPF will not be authorised to withdraw any monthly payments you are responsible for from your co-owner’s account.

Excess payments, when reported, will be refunded within 1-7 working days, depending on whether CPF has existing electronic linkages to HDB or the bank in question.

Do note as well that all withdrawals will be done from the CPF Ordinary Account, and that you will not be able to make any housing-related payments from your CPF Special Account as it is reserved for your retirement.

Applications and changes to your monthly housing installments

The methods through which you will need to apply for installments or make any changes will vary depending on what type of property you have and who financed it. You will need to check with your financers (either HDB or the bank) to ascertain what your monthly payment deadlines are. Additionally, your financers may be able to offer additional help in the case that you are unable to make payments as a result of COVID-19.

We have summarised the application/adjustment methods in the table below.

Applying to use CPF to pay for monthly housing installments, and;
	HDB Flat	Private Properties
HDB Loan	– Go onto the HDB website and submit an application via SingPass under ‘Commence/Vary Monthly CPF deduction’. – Fill out forms to commence at an HDB branch (by appointment only) CPF deductions will commence in 3-5 days.	– Submit an online application via myCPF. Monthly deductions will start after 5 days, so do submit the application with enough time prior to the deduction date.
Bank Loan	– Submit an online application via myCPF. Monthly deductions will start after 5 days, so do submit the application with enough time prior to the deduction date.
Checking your loan balance
	HDB Flat	Private Properties
HDB Loan	– Check it online on the HDB website by logging in with SingPass. You can see the information under ‘Financial info’   – Go to any of the HDB branches and request information on your loan.
Bank Loan	You may check with your bank on your outstanding loan.
Making changes to CPF regarding your monthly housing installments
	HDB Flat	Private Properties
HDB Loan	– Go onto the HDB website and submit an application via SingPass under ‘Commence/Vary Monthly CPF deduction’. – Fill out forms to commence at an HDB branch (by appointment only) Adjustments will be processed in 5 days.
Bank Loan	– Submit an online application via myCPF. Monthly deductions will start after 5 days, so do submit the adjustments with enough time prior to the deduction date.
Terminating your monthly housing installments
	HDB Flat	Private Properties
HDB Loan	– Go onto the HDB website and submit an application via SingPass under ‘Commence/Vary Monthly CPF deduction’. – Fill out forms to commence at an HDB branch (by appointment only)   Terminations will be processed in 5 days.
Bank Loan	– Submit an online application via myCPF. Do ensure to submit your application at least 5 days prior to your monthly deduction date to prevent excess deductions.
Using your CPF savings to pay for outstanding housing arrears
	HDB Flat	Private Properties
HDB Loan	– Go onto the HDB website and submit an application via SingPass under ‘Commence/Vary Monthly CPF deduction’. – Fill out forms to commence at an HDB branch (by appointment only) It will be processed in 3-5 days, after which the payment will be made.
Bank Loan	– Submit an online application via myCPF. It will be processed in 3-5 days and the payment will be made afterward.
Make partial or full repayments for your housing loans
	HDB Flat	Private Properties
HDB Loan	– Go onto the HDB website and submit an application via SingPass under ‘Partial Capital Repayment/Redemption of Housing Loan’. – Fill out forms to commence at an HDB branch (by appointment only) It will be processed in 3-5 days, after which the payment will be made.
Bank Loan	Once you receive approval from your financial institution (mortgagee) and checked that you have sufficient savings to make the payments, you can submit an online application with your SingPass via myCPF. Partial repayments will be completed in 3 working days, but full repayments require additional documentation, including the bank’s redemption statement and your lawyer’s legal bill. Once approved, it will be completed in 5 days.

Deductions in the case of multiple properties or refinancing

If you have two properties and are using your CPF Ordinary Account to pay for them both, do note that there is no fixed order or priority for which will be deducted first. Rather, it will mostly depend on the dates on which they are deducted – that is, this is a ‘first come first serve’ basis for the deductions.

Refinancing your housing loan will require additional submissions and applications. Firstly, you will need to speak to a lawyer and get an authorisation from them to submit the refinancing application for you and provide them with your latest loan statements, as well as the offer from the new mortgagee. Once approved, any existing monthly withdrawals will stop, and the new ones will commence.

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