PropertyMeter

CPF & housing

CPF Accrued Interest

Updated Fact-checked against CPF Board

What is CPF accrued interest?

CPF accrued interest is the interest your CPF savings would have earned if you had not used them to buy property. When you sell, you must refund the CPF principal you used plus this accrued interest to your CPF account before you receive any cash, so it reduces the cash you get from a sale.

Key facts

What it is
The interest your CPF savings would have earned had they stayed in your account
Runs from
The date you first used CPF for the property to the date the refund is made
Compounding
Annually, on the principal and on interest already accrued
Keeps growing
Even after your housing loan is fully repaid
Refund goes to (below 55)
Your Ordinary Account
Refund goes to (55 and above)
First your Retirement Account, up to your retirement sum; the rest to your OA

As of 6 Nov 2026. Source: CPF Board.

How accrued interest works

CPF savings are retirement money. When you use them for a home, CPF keeps a record of the principal you withdrew and adds the interest it would have earned, compounded every year. When you sell, the sale proceeds are used in this order:

  1. Repay the outstanding housing loan.
  2. Refund your CPF: the principal used plus accrued interest.
  3. The rest is paid to you in cash.

Example

You used $200,000 of CPF savings at the start and the rate stayed at the current 2.5% Ordinary Account rate. This is a simplified illustration; your actual figure depends on when each sum was used.

Years until you sellAccrued interestTotal CPF refund
10$56,017$256,017
20$127,723$327,723
30$219,514$419,514

After 30 years, the accrued interest is larger than the original sum used.

Common mistakes

  • Counting the sale price as cash in hand. The loan and CPF refund come out first.
  • Using CPF for every monthly payment by default. The more you use, the larger the refund. Consider whether paying partly in cash suits you.
  • Ignoring option money. Cash option fees you receive from a buyer count as part of the selling price and must be refunded to CPF before completion.

Frequently asked questions

Do I lose the accrued interest?

No. The refund goes back into your own CPF accounts, so it rebuilds your retirement savings. It does reduce the cash you receive from the sale.

What if I sell for less than my loan plus the CPF refund?

If you sell at market value, you don't need to top up the CPF refund shortfall in cash. You refund the sale price minus the outstanding housing loan.

Can I reduce my accrued interest?

Yes. A voluntary housing refund lets you put cash back into your CPF account before you sell. This reduces the amount on which interest keeps accruing.

Where can I check my figure?

Log in to CPF and use the 'What Happens If' section of the Home ownership dashboard to see how much you would need to refund if you sold now.

Sources

  1. Why do I need to refund the accrued interest on the amount of CPF savings used for my property? (CPF Board)
  2. CPF refund when selling or transferring property (CPF Board)
  3. 3 reasons why you should consider making a voluntary housing refund (CPF Board)
  4. What are the CPF interest rates? (CPF Board)

Every figure on this page was checked against the official government sources above on 6 Nov 2026. See our editorial policy.

This is general information, not financial, legal or tax advice.