See what it really costs to use your CPF OA for a property. Compare the accrued interest you must refund against leaving the same money to grow in CPF, over 5 to 20 years.
| Years | Principal used | Accrued interest (against you) | Total refund on sale | If left in CPF |
|---|
You never buy, so nothing is withdrawn from CPF and there is zero accrued interest working against you. Your OA keeps compounding while you pay rent. Enter a monthly rent above to compare.
| Years | Total rent paid | CPF OA if left to grow | CPF growth earned | Net vs rent |
|---|
If you use your CPF OA for property, you must refund the principal plus accrued interest when you sell. The accrued interest builds up at 2.5% per annum, compounded yearly, whether or not the property gains in value. This is the real cost of using CPF instead of cash.
If you leave the money in CPF, the OA itself also earns 2.5%, so on a like for like basis the figures match. The difference comes from the extra 1% on the first $20,000 of OA, which is paid into your Special or Retirement Account at 4%. That makes your total CPF grow a little faster, but the bonus is locked into retirement savings and cannot be used for your next home.
Practical takeaway for upgraders: using CPF is not free money. The accrued interest reduces your cash proceeds when you sell, and a larger refund means less cash in hand for your next purchase. Many sellers are surprised by how much the refund grows over 15 to 20 years.