Valuation Limit, accrued interest, and refund amount on sale
Rates verified: June 2026
Use the lower of purchase price or market valuation at time of purchase.
Principal withdrawn only. Do not include accrued interest.
The Valuation Limit (VL) is the lower of the purchase price and market value of your property at the time of purchase. Your CPF Ordinary Account savings can be used up to this limit for housing payments including the down payment, monthly loan instalments, stamp duty, and legal fees.
Yes. Once your CPF usage reaches the Valuation Limit, you can continue using CPF up to the Withdrawal Limit (120% of the Valuation Limit) provided you have set aside at least the Basic Retirement Sum (BRS) in your CPF accounts. For properties with fewer than 30 years of remaining lease, usage limits are reduced proportionally based on remaining lease years.
Your CPF OA earns 2.5% interest per year. When you withdraw CPF for housing, that money leaves your account and stops earning interest. To ensure your retirement savings are not permanently reduced, CPF Board tracks what your withdrawal would have earned and requires you to refund that notional interest when you sell the property. The accrued interest is returned to your OA, not taken away.
If your sale proceeds after repaying the outstanding mortgage are not enough to cover the full CPF refund (principal plus accrued interest), you only need to refund what the sale proceeds allow. CPF Board cannot require a cash top-up in this case. However, the shortfall in your OA means less retirement savings, which affects CPF LIFE payouts later.
The Valuation Limit equals the lower of your property's purchase price and its market value at the time of purchase. The Withdrawal Limit is 120% of the Valuation Limit, which requires setting aside the Basic Retirement Sum before CPF usage can exceed the VL.
Accrued interest is calculated using compound interest at 2.5% per annum on the principal withdrawn. The formula is: Accrued Interest = Principal x ((1.025)^years - 1). This reflects the interest your withdrawn OA funds would have earned had they remained in your account.
The total CPF refund on sale is the sum of your principal withdrawn plus all accrued interest. This amount is credited back to your CPF OA on completion of the sale.
⚠️ Financial Disclaimer: Calculations on this site are for informational purposes only and do not constitute financial advice. Results are estimates based on published CPF Board rules and may not reflect your individual circumstances. Always verify with CPF Board and consult a qualified financial advisor before making property or CPF decisions.