Using CPF for a new launch purchase
November 10, 2025 · HOS Editorial
Progressive payment across a 3–4 year construction period means CPF usage is different from resale. What you can use, what you must pay in cash, and when.
Progressive payment for a new launch stretches the purchase over the construction period — typically 3 to 4 years from option exercise to Temporary Occupation Permit (TOP). This changes how CPF flows into the purchase compared with a resale transaction.
The CPF stages
- Booking fee (5% of purchase price): cash only
- Option exercise (15% of purchase price): CPF Ordinary Account (OA) or cash, within 8 weeks of booking
- Stamp duties (BSD + any ABSD): CPF OA or cash, within 14 days of option exercise
- Progressive payments during construction: bank loan drawdown, typically 50–60% of purchase price overall
- TOP, CSC, and final payments: mix of CPF and bank loan per the progressive schedule
Limits to watch
The CPF withdrawal limit caps total CPF usage at 120% of valuation limit for bank-financed purchases. For private property, the valuation limit is typically the purchase price or market value (whichever is lower).
A common misconception is that stamp duties can be deferred using CPF reimbursement. In practice, BSD and ABSD must be paid in cash first and reimbursed from CPF OA after — the cash must be available upfront.
Speak to an IFPAS-registered financial adviser for a personalised projection, especially if you are using both CPF and significant cash.