CPF Rules and Early Repayment

When you own an HDB flat, it is important to understand how the CPF rules affect your ability to make housing loan repayments once you turn 55. Upon reaching that age, you will need to balance both your retirement and housing needs using your CPF savings.

Familiarise yourself with the following terms to help you plan ahead and prepare.

  • CPF Retirement Account
  • Using CPF to repay housing loans after you are 55
  • CPF contribution rates after you are 35
  • Early repayment of your HDB loan

Early repayment of your HDB loan

To reduce your financial commitments, you can also use your CPF Ordinary Account savings to make partial capital repayment or redeem your outstanding housing loan before you reach 55. However, the CPF Housing Limits may apply.


CPF Retirement Account

Your CPF Retirement Account will be created for you when you turn 55. At this point, the savings in your CPF Special Account followed by the Ordinary Account will be transferred to the Retirement Account to meet your Full Retirement Sum.

Your CPF Retirement Sum

The retirement sum you set aside in your Returement Account will provide you with CPF LIFE monthly payouts for your daily expenses in retirement from 65, no matter how long your live.

Using CPF to repay housing loans after 55

Using Your Ordinary Account

If you continue working after 55, you can still use the monthly contribution that goes into your Ordinary Account to service your housing loan. This means that even if you have not met the Full Retirement Sum upon reaching 55, you can still use your Ordinary Account contributions for your housing loan repayments.

Consider keeping some savings to earn attractive CPF interest rates and use them to boost your monthly payouts in retirement.

CPF Housing Withdrawal Limits

Please note that the CPF Housing Limits may apply. This limit helps to protect you from overspending on housing loan repayments at the expense of your retirement savings.

CPF contribution rates

For your planning, please note that the proportion of CPF contributions that goes into the Ordinary Account drops progressively from age 35. From that age, more of your CPF contributions go to your Special Account and Medisave Account in order to help you save for retirement and healthcare needs. Before you are 55, only the savings in your CPF Ordinary Account can be used for housing loan repayments.

More information on CPF

You can refer to the CPF Board website for more information about withdrawing your CPF when you turn 55.