At a glance
- Rate
- Prevailing OA rate, 2.5% a year (October to December 2026), compounded annually
- What you refund
- CPF principal used plus accrued interest, and any housing grants with their interest
- Where it goes
- Your own CPF account: OA if under 55; RA first, up to the Full Retirement Sum, if 55 or older
- Shortfall
- No cash top-up needed if the sale was at market value
- Checked
- 14 October 2026
The short answer
Yes, you have to refund it. When you sell a home you paid for with CPF, the sale proceeds first clear your housing loan, then return the CPF principal you used plus accrued interest to your own CPF account. Only what is left comes to you in cash. Accrued interest is the interest that money would have earned in your Ordinary Account, at the prevailing OA rate, which is 2.5% a year for October to December 2026. If you sold at market value and there is not enough to refund everything, you do not have to make up the gap in cash. We checked these rules against CPF’s pages on 14 October 2026.
What accrued interest is
CPF defines accrued interest as the interest your CPF savings would have earned if they had stayed in your account. It is calculated at the prevailing OA rate, compounded annually, from the date you first used the money until it is refunded.
| Point | Rule |
|---|---|
| Rate | Prevailing OA rate; 2.5% a year, the floor, through 31 December 2026 |
| Compounding | Annually |
| Starts | The date each sum was withdrawn for the property |
| Stops | When the money is refunded, not when the loan is repaid |
| Covers | Down payment, monthly instalments, stamp and legal fees paid from CPF, and housing grants |
Accrued interest is not a fee. The refund goes back into your own account, where it earns interest again and counts towards your retirement savings. It feels like a cost because it reduces the cash you take home from a sale.
How much goes back to CPF when you sell
The sale proceeds are used in this order:
- Repay the outstanding housing loan, HDB or bank.
- Refund the CPF principal and accrued interest, including any housing grants with their interest.
- Pay you the balance in cash, from which you settle sale costs such as agent commission and legal fees.
If you are under 55, the refund goes to your OA, and you can use it for your next home. If you are 55 or older, it first tops up your Retirement Account to the Full Retirement Sum, and the balance goes to your OA. If you are 55 or above and pledged the property for your retirement sum, the pledged amount is refunded too.
Worked example
A couple bought a 4-room in October 2016. They used S$80,000 of CPF for the down payment and S$1,000 a month for 10 years on the HDB loan, a total CPF principal of S$200,000. In October 2026 they sell for S$620,000, with S$150,000 left on the loan.
| Item | Amount |
|---|---|
| CPF principal used | S$200,000 |
| Accrued interest on the S$80,000 down payment (10 years at 2.5%) | about S$22,400 |
| Accrued interest on the monthly instalments | about S$16,100 |
| CPF refund | about S$238,500 |
| Sale | Amount |
|---|---|
| Sale price | S$620,000 |
| Less outstanding HDB loan | S$150,000 |
| Less CPF refund to their accounts | S$238,500 |
| Cash proceeds, before commission and legal fees | S$231,500 |
The interest figures use a constant 2.5% and a simplified monthly timing, so the exact number will differ. Your real figure is on the Home Ownership Dashboard on the CPF website, under “What Happens If”. Our sell-and-upgrade calculator runs the same steps on your flat.
The negative sale case
A negative sale is when the price does not cover the loan plus the full CPF refund. CPF’s rule is that you refund only the selling price less the outstanding loan, and you do not have to top up the shortfall in cash, as long as the sale was at market value.
Using the same couple, suppose they had a bigger loan and sold for less:
| Item | Amount |
|---|---|
| Sale price (at market value) | S$400,000 |
| Less outstanding loan | S$210,000 |
| CPF refund due | S$238,500 |
| CPF actually refunded | S$190,000 |
| Shortfall | S$48,500, no cash top-up needed |
| Cash proceeds | S$0 |
Two things still cost cash. Any option fee or exercise fee the buyer paid you in cash counts as part of the price and must be refunded to CPF before completion. And sale costs such as agent commission come from your own pocket when there is no cash left over. The protection only covers a sale at market value. If you sell well below value, ask CPF how your refund will be worked out before you agree a price.
Voluntary housing refunds
You can put money back into CPF before you sell, which stops interest growing on that amount. CPF allows any amount up to the principal plus accrued interest, in one payment or several. The money earns OA interest once it is back, but it stays in CPF until you meet the withdrawal rules from 55. A voluntary refund does not get tax relief.
We looked for a 2026 change to the refund rules or to partial refund options and found none. CPF’s guide to voluntary refunds, published on 29 May 2026, describes the same choices, and its refund pages updated in June 2026 list no new rules.
Before you sell
- Check your CPF principal and accrued interest on the Home Ownership Dashboard.
- Get a realistic price. A valuation shows if the sale will cover your loan and CPF refund.
- If you are upgrading, test the numbers in our sell-and-upgrade quiz and calculator before you list.
This page is general information from CPF’s published guides, checked on 14 October 2026.
Common questions
Do I have to refund CPF accrued interest when I sell my HDB flat?
Yes. After the outstanding housing loan is paid off, the sale proceeds are used to refund the CPF principal you used plus accrued interest. The money goes back to your own CPF account, not to the government.
What interest rate is used for CPF accrued interest?
The prevailing CPF Ordinary Account rate, compounded annually. The OA rate has been at its 2.5% floor for years and is 2.5% for 1 October to 31 December 2026.
Do I need to pay cash if my sale price does not cover the CPF refund?
Not if you sold at market value. CPF says you refund only the selling price less the outstanding loan, and you do not need to top up the shortfall in cash. Any cash option fee you received does count as part of the price and must go to CPF.
Does accrued interest stop after my loan is fully paid?
No. It keeps accruing from the date you first used CPF for the property until the money is refunded, even after the loan is repaid. A voluntary housing refund stops the interest on the amount you put back.
Can I make a partial voluntary housing refund?
Yes. CPF allows any amount up to the principal plus accrued interest, in one go or several. We found no 2026 change to these rules; CPF's guide published on 29 May 2026 describes the same options.
Can I withdraw the refunded CPF in cash?
Only under the normal CPF withdrawal rules from age 55. Before that, the refund stays in your OA, where you can use it for your next home and it earns OA interest.
Get a free valuation
Tell us your block and flat type. We'll send recent prices for your block and nearby blocks, and what a sale would leave you after your loan and CPF refund.
Sources
Facts on this page were checked against these sources on 14 October 2026.
- CPF: Refund when selling or transferring your property (updated 11 June 2026)
- CPF: Why do I need to refund the accrued interest on CPF used for my property?
- CPF: What happens to the sales proceeds after selling your home
- CPF: Property refund FAQ (updated 17 June 2026)
- CPF: 3 reasons to consider a voluntary housing refund (29 May 2026)
- CPF: 4% floor extended to end-2027; OA rate 2.5% for October to December 2026
Read next
GuideCPF Voluntary Housing Refund: How It Works, How to Pay and Whether It Is Worth It
A CPF voluntary housing refund puts cash back into CPF for the savings you used on your home. How to pay it, where the money goes, pros, cons and a worked example.
ToolHDB Sell-and-Upgrade Calculator: What Condo Can You Afford?
Work out the cash and CPF you get from selling your HDB flat, then the most you can pay for a private condo under TDSR, LTV and stamp duty rules.
ToolShould I Sell My HDB and Upgrade Now? Take the 1-Minute Quiz
Ten quick taps tell you your upgrade budget for a condo, EC or bigger flat, the cash and CPF your sale frees up, and whether now is the right time.
GuideUpgrading From HDB to Condo or EC in 2026: Order, Loans, ABSD and a Worked Example
How to upgrade from an HDB flat to a condo or EC in 2026: sell first or buy first, ABSD remission, the 6-month rules, 75% LTV, TDSR, MSR and a S$1.6m worked example.
GuideRight-Sizing Your HDB Flat or Private Home After 55: Silver Housing Bonus, 2-Room Flexi and CPF Rules
How Singapore seniors can sell a bigger home and buy smaller: Silver Housing Bonus, 2-room Flexi, Community Care Apartments, Lease Buyback and CPF at 55.