When will CPF start to deduct from OA and when will HDB start to deduct from HDB loan?

When it comes to using your Central Provident Fund (CPF) for an HDB loan, here are the key points to consider:

CPF Deductions for HDB Loan

• CPF deductions from your Ordinary Account (OA) will start once you have signed the Agreement for Lease and the HDB has approved your loan application.
• The CPF deductions will be made monthly, along with your mortgage repayments, as long as you have sufficient funds in your OA.

Timeline

• After you book an HDB flat, you will typically sign the Agreement for Lease within a few months.
• Once the Agreement for Lease is signed and the loan is approved, HDB will start deducting the monthly mortgage payments from your CPF OA, if you have chosen to use your CPF for the loan.
• This process usually begins after the completion of the legal documentation and the disbursement of the HDB loan.

Pre-Requisites

• Ensure you have a valid HDB Loan Eligibility (HLE) Letter if you are taking an HDB loan.
• You must also have sufficient funds in your CPF OA to cover the monthly mortgage payments.

By understanding these steps, your buyer can plan and prepare for the deductions from their CPF OA to service the HDB loan. You can check the latest updates and specific details on the HDB website or through EdgeProp Singapore for more tailored advice on HDB transactions.