Valuation Limit (VL)
What is VL (Valuation Limit)?
The valuation limit (VL) is the lower of a property's purchase price and its valuation at the time of purchase. It is the basic cap on how much CPF Ordinary Account savings you can use for a home. If the remaining lease cannot cover the youngest buyer to age 95, the cap is reduced to a percentage of the VL.
Key facts
- Valuation limit
- The lower of the purchase price and the valuation at the time of purchase
- Full use requires
- A remaining lease that covers the youngest buyer using CPF until age 95
- Shorter leases
- CPF use is pro-rated, if the remaining lease is at least 20 years
- New HDB flat with HDB loan
- CPF can be used for the full purchase price
- Beyond the VL
- Possible up to the withdrawal limit (bank loans), or for the remaining HDB loan, once you set aside your Basic Retirement Sum
As of 6 Nov 2026. Source: CPF Board.
How the valuation limit works
CPF Board caps how much retirement savings can go into a property so that buyers don’t overpay with CPF money. The cap depends on what you are buying and how you finance it:
| Purchase | CPF can be used up to |
|---|---|
| New HDB flat, HDB loan | The full purchase price |
| Resale HDB flat, HDB loan | The VL, then for the remaining loan if you set aside your Basic Retirement Sum |
| HDB flat or private property, bank loan | The VL, then up to the withdrawal limit (120% of the VL) if you set aside your Basic Retirement Sum |
These caps assume the remaining lease covers the youngest buyer to age 95. If it doesn’t, the cap is pro-rated, and once all owners together reach the pro-rated limit, no more CPF can be used, even if you have set aside your Basic Retirement Sum.
Example
You buy a resale condo for $1,000,000 with a bank loan. The bank’s valuation is $980,000, and the lease covers you to age 95.
| Item | Amount |
|---|---|
| Valuation limit (lower of price and valuation) | $980,000 |
| Cash over valuation, cash only | $20,000 |
| Withdrawal limit, if your Basic Retirement Sum is set aside | $1,176,000 |
Common mistakes
- Assuming CPF covers the whole price. CPF can’t pay for any amount above the valuation.
- Not checking the remaining lease. An older leasehold property may allow only a pro-rated amount. Use the CPF housing usage calculator before you commit.
- Forgetting interest is part of the cost. CPF usage up to the VL is still refunded with accrued interest when you sell.
Frequently asked questions
What happens if my price is higher than the valuation?
The valuation limit uses the lower figure, so CPF can't be used for the cash over valuation. That part must be paid in cash.
How is CPF use pro-rated for older properties?
If the remaining lease can't cover the youngest buyer to age 95, each owner can use CPF up to a percentage of the VL. CPF Board's example: two 25-year-old buyers of a $550,000 flat with 65 years of lease left can use up to $495,000 (90%), because the lease runs out when they are 90.
What if the remaining lease is under 20 years?
CPF savings can be used on a pro-rated basis only if the property has a remaining lease of at least 20 years.
Related terms
Sources
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.