The Voluntary Housing Refund is an essential opportunity for Singapore homeowners looking to boost their Central Provident Fund (CPF) savings. This process allows homeowners to return the CPF savings used to purchase their property, while still retaining ownership of the home. By making a voluntary contribution, individuals can lower the amount they eventually need to refund when they sell or transfer their property, leading to higher cash proceeds.
Not only does this help homeowners reclaim funds used for buying their homes, but it also contributes to their retirement savings. The refunded amount accrues interest based on CPF interest rates, strengthening their financial security for the future. Additionally, it assists homeowners in meeting the Full Retirement Sum (FRS) requirements once they reach the age of 55.
What is the Voluntary Housing Refund?
The Voluntary Housing Refund allows homeowners to return CPF savings that were used for purchasing their home. This includes the principal amount withdrawn from the Ordinary Account (OA) and any interest that has been accrued on those funds.
The primary benefit of making this refund is the reduction in the amount that needs to be refunded when the property is sold or transferred. Furthermore, by boosting the CPF balance, homeowners benefit from compound interest, which can significantly contribute to their retirement savings.
Additionally, this refund can help increase the cash proceeds received from the sale or transfer of the property since the refunded amount reduces the CPF balance to be repaid.
Who Can Benefit from the Voluntary Housing Refund?
Eligibility
The Voluntary Housing Refund is available to homeowners who have used CPF Ordinary Account savings to purchase a property. This includes those who have used CPF funds for various property types, such as HDB flats, private properties, and others.
If CPF funds were used for your home purchase, you are eligible to apply for this refund, provided you meet the relevant criteria.
Special Conditions for Certain Groups
- Undischarged Bankrupts: If you are an undischarged bankrupt, approval from the Official Assignee is required before proceeding with the housing refund.
- Housing Grants and CPF Accounts: If you have received housing grants for an HDB flat purchase, these grants will be refunded to your OA. However, if you received $30,000 or more in grants, part of the refund may be credited to your Special Account (SA), Retirement Account (RA), or MediSave Account.
Refund Limits and Conditions
When making a voluntary housing refund, you are permitted to return up to the total CPF amount withdrawn for the property purchase, including any accrued interest. Homeowners can choose to make either partial or full refunds, depending on their financial situation.
For individuals aged 55 or older, the refunded amount will count towards fulfilling the Full Retirement Sum (FRS) requirement, which ensures regular retirement payouts. Any amount refunded beyond the FRS will remain in the OA.
How to Apply for a Voluntary Housing Refund
Through My CPF Digital Services
- Access the CPF website using your Singpass.
- Choose your preferred refund payment method.
- Select the property for which you want to make the refund.
- Enter the amount you wish to refund to your CPF account.
Using the CPF Mobile App
- Download the CPF Mobile App, available for both Android and iOS devices.
- Log in to your CPF account securely.
- From the home screen, tap on the “Services” tab.
- Choose the refund option to proceed.
CPF Helpline
If you need any assistance or have questions regarding the voluntary housing refund process, you can call the CPF hotline at 1800-227-1188. For faster service, you can also book an appointment in advance.
Please note that mobile calls to the CPF hotline are charged, while calls from regular landlines in Singapore are free.
