Most first-time resale buyers budget for the downpayment, see a healthy CPF Ordinary Account balance, and assume they are covered.
Then they discover that several of the largest items in a resale purchase cannot touch CPF at all, that stamp duty is due within 14 days whether or not the CPF reimbursement has come through, and that if the flat values below the agreed price, the shortfall is payable in cash on top of everything else.
This guide separates what CPF can pay from what has to be cash, in the order the money actually leaves your account.
The Downpayment: Less Cash Than You Think
Loan-to-value limits determine your downpayment, and the rules differ depending on where you borrow.
With an HDB concessionary loan, the loan-to-value limit is 75%, which was reduced from 80% in August 2024. That means a 25% downpayment, and the full 25% may be paid from your CPF Ordinary Account. There is no minimum cash portion. The HDB loan rate is 2.6% per year, pegged at 0.1% above the CPF Ordinary Account rate.
With a bank loan, the loan-to-value limit is also 75%, but the composition is different. Of the 25% downpayment, at least 5% must be paid in cash. The remaining 20% can come from CPF OA or cash. Bank rates in 2026 have generally sat in the 3.2% to 3.8% range, pegged to 3-month SORA plus a spread.
On a S$600,000 flat, that is the difference between a S$150,000 downpayment fully payable from CPF, and the same S$150,000 with S$30,000 of it required in hard cash.
There is one critical qualifier. Both your loan and your CPF usage are pegged to the lower of the purchase price or the HDB valuation. This is what makes Cash Over Valuation so painful.
Cash Over Valuation: The Item That Must Be Cash
Cash Over Valuation, or COV, is the amount by which your agreed purchase price exceeds HDB’s valuation of the flat.
Since a process change in March 2014, you can only request the HDB valuation after the Option to Purchase has been granted. In other words, you negotiate and commit to a price without knowing what HDB thinks the flat is worth. You find out afterwards.
If the valuation comes in below your agreed price, the gap is COV. And because both your loan and your CPF withdrawal are capped at the valuation, COV cannot be financed and cannot be paid from CPF. It is cash, in full.
A worked example:
| Amount | |
| Agreed purchase price | S$650,000 |
| HDB valuation | S$620,000 |
| Cash Over Valuation | S$30,000, cash only |
| Loan (75% of S$620,000 valuation) | S$465,000 |
| Downpayment (25% of S$620,000) | S$155,000, CPF-payable on an HDB loan |
The buyer needs S$155,000 of downpayment plus S$30,000 of cash COV, and the COV portion cannot be reduced, financed or deferred.
Two things are worth knowing about COV in the current market. First, it is not universal. Across the resale market as a whole, most buyers pay no COV at all, and it tends to be concentrated in particularly sought-after units and estates rather than spread evenly. Second, COV also increases your stamp duty, because Buyer’s Stamp Duty is calculated on the higher of price or valuation.
The practical defence is to keep a cash buffer before you make an offer, and to be prepared to renegotiate or walk away if the valuation lands well below the agreed price.
Buyer’s Stamp Duty: CPF-Reimbursable, But Cash First
Buyer’s Stamp Duty on residential property is charged on a rising scale:
| Portion of purchase price or value | BSD rate |
| First S$180,000 | 1% |
| Next S$180,000 | 2% |
| Next S$640,000 | 3% |
| Next S$500,000 | 4% |
| Next S$1,500,000 | 5% |
| Amount above S$3,000,000 | 6% |
BSD is computed on the higher of the purchase price or the valuation, which is why COV raises your duty as well as your cash outlay.
CPF Ordinary Account can be used for stamp duty. But the timing matters: stamp duty is payable within 14 days of exercising the Option to Purchase, and in practice most resale buyers pay it in cash and are reimbursed from CPF afterwards. So even though CPF ultimately absorbs it, you need the cash available on the day.
Additional Buyer’s Stamp Duty applies on top for those who already own residential property, or who are PRs or foreigners. As at 2026, Singapore Citizens pay 0% on a first residential property, 20% on a second and 30% on a third or subsequent. PRs pay 5% on a first property and 30% on a second. Foreigners pay 60%. ABSD is a very large number and is worth confirming with IRAS for your exact situation.
The Smaller Cash Items That Add Up
These are individually modest and collectively significant, and almost all of them are cash.
Option Fee. Paid to the seller when the Option to Purchase is granted, up to S$1,000. Cash.
Option Exercise Fee. Paid when you exercise the option. The Option Fee and Exercise Fee together are capped at S$5,000. Cash.
Request for Value. S$120, paid to HDB when you request the valuation after the OTP is granted.
HDB resale application fee. S$40 for 1 and 2-room flats, S$80 for 3-room and larger, payable by each party. So a buyer of a 4-room flat pays S$80.
Legal and conveyancing fees. Using a private law firm typically costs in the region of S$2,500 to S$5,000. HDB’s own conveyancing service is cheaper, and HDB publishes a fee enquiry tool that will give you an exact figure for your transaction. Conveyancing fees can generally be paid from CPF.
Agent commission. Not regulated and fully negotiable. Buyer’s side commission is typically 1% to 2%, and seller’s side around 2%, occasionally up to 3%. Cash.
Renovation, furnishing and moving. Not part of the purchase, but they land immediately after it and are almost entirely cash. This is where a lot of buyers who budgeted perfectly for the purchase find themselves short.
Putting It Together
For a S$650,000 resale flat valued at S$620,000, bought by a first-time Singapore Citizen couple using an HDB loan, the cash requirement looks roughly like this:
| Item | Cash needed |
| Cash Over Valuation | S$30,000 |
| Option Fee and Exercise Fee | up to S$5,000, applied toward the purchase |
| Buyer’s Stamp Duty (on S$650,000) | approx. S$15,600, CPF-reimbursable after payment |
| Request for Value | S$120 |
| Resale application fee | S$80 |
| Legal fees | S$2,500 to S$5,000, CPF-payable |
| Agent commission | negotiable, commonly 1% to 2% |
| Downpayment (25% of S$620,000) | S$155,000, fully CPF-payable on an HDB loan |
The downpayment, the largest line by far, is the one CPF handles most comfortably. The genuinely cash-only pressure comes from COV, the agent commission and the timing of stamp duty, plus renovation immediately afterwards.
Run your own numbers with your actual valuation and loan type before committing, and confirm the current rates with HDB, CPF and IRAS, since LTV limits and duty rates are policy levers that do change.
If You Are Short on the Cash Portion
The cash-only components are where buyers most often find a gap, and they arrive on fixed deadlines. A few points worth being clear about.
CPF cannot solve a COV gap. There is no mechanism to withdraw above valuation, and no lender will finance it either. The only answers are cash, a renegotiated price, or a different flat.
If you are covering a short, defined shortfall, such as stamp duty due within 14 days while awaiting a CPF reimbursement, or a renovation deposit falling due before your next bonus, a licensed moneylender can disburse quickly, with interest capped by law at 4% per month on the outstanding principal and total charges capped at the principal sum. That is a reasonable tool for a timing gap of weeks.
It is not a reasonable tool for funding a structural shortfall on a property purchase. If you need to borrow at short-term rates to complete the purchase itself, the honest read is that the flat is above your budget, and stretching to buy it will hurt for years. Lower the price bracket instead.
Above all, do not take on new unsecured debt during the mortgage approval process without understanding how it affects your Total Debt Servicing Ratio and Mortgage Servicing Ratio. New borrowing before the loan is granted can reduce the amount a bank will lend you, or derail the approval entirely. Speak to your banker or HDB officer first.
Frequently Asked Questions
Can I use CPF to pay Cash Over Valuation?
No. Both your CPF withdrawal and your housing loan are capped at the lower of the purchase price or the HDB valuation, so any amount above valuation must be paid entirely in cash.
How much downpayment do I need for a resale HDB flat?
25% under both an HDB concessionary loan and a bank loan, since both carry a 75% loan-to-value limit. With an HDB loan the entire 25% can come from CPF OA. With a bank loan, at least 5% of the price must be cash.
When do I find out the COV?
Only after the Option to Purchase has been granted, since you can only request the HDB valuation at that point. You agree the price before knowing the valuation, which is why a cash buffer matters.
Can CPF pay my Buyer’s Stamp Duty?
Yes, but stamp duty is due within 14 days of exercising the OTP, so most resale buyers pay it in cash and claim reimbursement from CPF afterwards. Plan for the cash to be available on the day.
Do most buyers pay COV?
No. Across the resale market as a whole, most buyers pay none, and COV is concentrated in particularly desirable units and estates. It is still worth budgeting for, because if it applies to your flat it applies in full and in cash.
What is the total cash I should have ready?
Beyond the downpayment, budget for COV if it applies, the option fees, stamp duty at least temporarily, agent commission, and renovation. For a mid-range resale flat that commonly means a five-figure cash buffer separate from your CPF.
Does taking a personal loan affect my HDB or bank loan approval?
It can. New unsecured borrowing affects your debt servicing ratios and may reduce the housing loan amount you qualify for, or affect approval. Check with your banker or HDB officer before taking on any new credit during the purchase process.
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Opening Hours:
Monday to Friday: 11am to 7pm
Saturday: 11am to 6pm
Closed on Sunday and Public Holidays
*This article is general information and not financial advice. Loan-to-value limits, stamp duty rates and fees are accurate as at July 2026 and are subject to policy change. Confirm current figures with HDB, CPF and IRAS before committing. Borrow only what you can repay.*
