When you sell your HDB, all CPF Ordinary Account money used for the property — including the initial downpayment, monthly mortgage instalments paid via CPF, and any CPF top-ups — must be refunded to your CPF OA with 2.5% per annum compounded interest. This CPF refund is computed automatically by HDB and CPF Board at completion and deducted from sale proceeds.
CPF refund calculation
CPF refund = Original OA usage + Accrued interest (2.5% p.a. compounded annually)
The 2.5% rate is the same as the OA savings rate — effectively, CPF treats your withdrawals as if they had stayed in OA earning interest.
| Year of usage | OA withdrawal | Accrued interest by 2026 | Refund to OA |
|---|---|---|---|
| 2010 (16 yrs ago) | S$100,000 | S$52,160 | S$152,160 |
| 2015 (11 yrs ago) | S$50,000 | S$18,860 | S$68,860 |
| 2020 (6 yrs ago) | S$30,000 | S$4,800 | S$34,800 |
| Total | S$180,000 | S$75,820 | S$255,820 |
Accrued interest can be substantial for long-held flats. Source: CPF Board.
Reusing CPF refund for new condo
Once refunded to OA, the money can be:
- Used for the new private property downpayment (subject to 120% withdrawal limit)
- Left in OA earning 2.5% per annum
- Transferred to Special Account (irrevocable, earns 4% per annum until age 55)
- Voluntarily contributed to CPF LIFE for retirement annuity
Impact on cash proceeds
Net cash from HDB sale = Sale price − HDB loan balance − CPF refund − legal/admin fees
Example: S$680,000 sale − S$200,000 loan balance − S$255,820 CPF refund − S$5,000 fees = S$219,180 net cash. Plus S$255,820 returned to your OA for future use.
See complete framework.
FAQ
Is accrued interest taxable?
No. CPF refund (principal + accrued interest) is not taxable income — it's just your own CPF returning.
Can I keep CPF accrued interest as cash?
No. Accrued interest must return to OA — it cannot be received as cash.
What if sale price is below CPF used + accrued interest?
You must top up the shortfall from cash savings — CPF refund is mandatory regardless of sale price.