Pillar 3
HDB Grants, CPF Housing & Property Planning
HDB grants, CPF housing usage, Home Protection Scheme, and property planning. Housing decisions directly impact your retirement adequacy.
Housing grants are essentially free money from the government to help you afford a home. Many people leave tens of thousands unclaimed.
For first-timer households with income up to S$9,000/month.
S$50,000 (first-timer) / S$40,000 (second-timer) for resale HDB
S$30,000 (live with parents) / S$20,000 (live near parents)
Up to S$25,000 for singles buying 2-room flexi in non-mature estate
Grants can be combined. A first-timer family buying resale near parents with combined income of S$7,000 can potentially receive: EHG (S$25,000) + Family Grant (S$50,000) + PHG (S$20,000) = S$95,000. Always check eligibility for all available grants.
Your CPF Ordinary Account (OA) can be used for housing. But there are hidden costs most people do not realize.
Up to 20% for HDB, 5% for private (rest must be cash)
Both HDB loans and bank loans
Including BSD and ABSD (if applicable)
CPF usage capped at property valuation, not price
When you use CPF for housing, you must repay the principal PLUS 2.5% accrued interest when you sell.
This effectively means using CPF for housing costs you 2.5% per year in lost retirement savings.
A mortgage protection insurance compulsory for HDB loans. Ensures your family keeps the home if you pass away or become permanently incapacitated.
HPS does not cover bank loans for private property. You need:
Tip: For bank loans, term insurance is often more flexible and cost-effective than MRTA.
Every dollar used for housing is a dollar not earning 4% in your SA. Here is how to think about it:
Before buying property, calculate: If you use S$X from CPF OA, how much less will you have in retirement? Generally, every S$100,000 used for housing (held 20 years) could mean S$200 to S$300 less per month in CPF LIFE payouts. The trade-off may be worth it, but you should make the decision consciously.
We will help you understand the trade-offs and optimize your housing decision for long-term wealth.
Common Belief
"Using CPF for housing is always the best choice"
Planning Reality
Using CPF for housing means losing 2.5% accrued interest annually. If you have cash earning less than 2.5%, using CPF may reduce your retirement savings.
Common Belief
"I can always pay back what I borrowed from CPF"
Planning Reality
You must repay CPF principal plus 2.5% accrued interest when you sell. If property values don't appreciate enough, you may not have enough proceeds to fully refund CPF.