Many Singaporeans pour a large part of their CPF Ordinary Account (OA) savings into buying a flat or condo. It’s a smart move for homeownership — but it often leaves their CPF balance lower than they’d like for retirement.
Here’s the good news: through the Voluntary Housing Refund (VHR) scheme, you can refund the CPF savings you used for housing even before selling your property. And doing so can quietly supercharge your long-term retirement savings.
How the Voluntary Housing Refund Works
The VHR is an optional scheme by the CPF Board that allows you to refund some (or all) of the CPF funds you’ve used for your home purchase — plus any accrued interest — back into your CPF account while you still own the property.
Think of it as “paying yourself back” early. You’ll reduce what you owe later when you eventually sell your property, while growing your CPF balance faster through guaranteed CPF interest rates (up to 2.5% on OA and 4% on SA/RA savings).
This means two key benefits:
- You’ll have higher CPF payouts during retirement.
- You’ll enjoy larger cash proceeds when you sell your property, since you’ll owe less in refunds at that point.
Why It Matters Now
With housing prices rising and people living longer, retirement adequacy has become a serious national concern. The VHR directly tackles this by helping Singaporeans rebuild their CPF savings gradually — without having to wait until they sell their home.
Let’s take an example: if you used $100,000 from your CPF to buy your home, after 10 years, the refund amount (including accrued interest) could reach around $128,000. Making a $20,000 voluntary refund halfway through would not only lower your eventual refund burden but also earn you years of compounded interest within CPF.
In short — the earlier you refund, the stronger your future position.
Who Can Apply and How It’s Credited
Anyone who has used CPF OA funds for property financing is eligible. You can make partial or full refunds through the myCPF portal or CPF Mobile App using PayNow or eNETS.
For members below age 55, refunds are credited to the OA.
For those aged 55 and above, refunds first go toward meeting the Full Retirement Sum (FRS) — ensuring you receive stronger monthly payouts later.
If you’ve received over $30,000 in housing grants, part of the refund will also be directed to your Special, Retirement, or MediSave Account, supporting both healthcare and retirement needs.
Things to Consider Before Refunding
While VHR offers long-term financial benefits, don’t rush it. Make sure you have enough liquid savings for short-term needs such as medical costs or education fees. CPF is a secure, interest-bearing platform — but it’s not as flexible as cash.
Still, for most homeowners, the VHR is a simple, low-risk way to strengthen future security. You’re essentially moving money from a low-yield bank account into a higher-return, government-backed savings system.
Frequently Asked Questions
Can I make a partial refund?
Yes. You can refund any amount, at any time, depending on your financial situation. Even small refunds reduce future obligations and grow with interest.
What if I’m over 55?
Refunded sums first top up your Retirement Account until your Full Retirement Sum is met. Any extra goes to your OA.
Can I reuse refunded CPF money later?
Yes. Funds remain available for approved uses such as housing, education, or healthcare — they’re not permanently locked.