CPF Accrued Interest Singapore: Housing Refunds and Sale Cash

When you sell a home funded with CPF, the housing principal withdrawn and its accrued interest generally return to your CPF accounts. This reduces sale cash, but the refund remains your savings. It is separate from mortgage interest paid to a lender.

Start with the CPF accrued interest calculator for a projection, then use the actual housing refund shown in your CPF Home ownership dashboard for a transaction.

What is included

Housing principal can include OA used for the downpayment, instalments and eligible transaction fees, including housing grants used for the home. Accrued interest is what those withdrawn savings would have earned in CPF. It runs until refund and uses prevailing rates with annual compounding. CPF: housing accrued interest and annual compounding.

Timing changes the estimate

A single S$200,000 withdrawal outstanding for five full calendar years at a constant 2.5% grows to S$200,000 × 1.025⁵ = S$226,281.64. The accrued portion is S$26,281.64. Actual withdrawals made gradually have different interest periods; do not pretend every monthly instalment left CPF on purchase day.

CPF computes interest monthly and credits it annually. A monthly calculation does not mean monthly compounding. Your withdrawal dates, rate history and voluntary refunds matter. CPF: monthly interest calculation and annual crediting.

A sale-cash example

Assume a S$700,000 sale, S$350,000 loan redemption, S$250,000 required CPF refund and S$20,000 transaction costs. With enough proceeds to meet every item, the simplified cash remainder is S$80,000. The S$250,000 is in CPF, not an additional external selling expense. The conveyancer’s completion statement determines actual ordering, apportionment and fees.

Refunds are not always the full projection

If a property is sold at market value and the sale price after repaying the housing loan is insufficient for the required CPF refund, CPF does not require a cash top-up for that shortfall. This is not a waiver of the housing loan or other transaction costs. Selling below market value needs separate confirmation. CPF: housing refunds and a market-value sale shortfall.

Before 55, housing refunds generally return to OA. At 55 or above, the refund first restores the required retirement sum in RA, with the remainder staying in OA. Withdrawal and reuse for housing are subject to the applicable rules; do not assume the entire refund is freely spendable. A property pledge can create an additional refund requirement. CPF: using housing refunds before and after age 55. CPF: why housing savings and interest are refunded.

How to use this when planning the next home

Keep separate figures for cash and CPF available after the sale. Option fees, valuation premiums and renovation may require cash even when your combined resources look sufficient. At 55 or above, confirm how much of the refund remains available for housing after RA requirements. If you buy first, an expected refund may arrive too late for the next payment milestone.

Compare CPF versus cash servicing using today’s buffer as well as future sale cash. A smaller CPF refund achieved by spending all your cash today is not automatically a stronger plan.

Last updated: 14 Sep 2026 · Editorial Policy · Advertising Disclosure · Corrections