# Withdrawal Limit (WL)

- Topic: CPF & housing
- Last updated: 6 Nov 2026
- Fact-checked against official government sources: 6 Nov 2026
- Canonical URL: https://propertymeter.sg/glossary/withdrawal-limit/

## What is WL (Withdrawal Limit)?

The withdrawal limit (WL) is the maximum CPF Ordinary Account savings you can use for a property bought with a bank loan: 120% of the valuation limit, meaning the lower of the price and the valuation at purchase. You can use CPF beyond the valuation limit, up to this cap, only after setting aside your Basic Retirement Sum.

## Key facts

- **Withdrawal limit:** 120% of the lower of the purchase price and the valuation at purchase
- **Applies to:** HDB flats and private property bought with a bank loan
- **Condition:** You must have set aside your Basic Retirement Sum in your CPF accounts
- **Before the WL:** CPF use first reaches the valuation limit (100%)
- **Shorter leases:** If the lease can't cover the youngest buyer to age 95, the pro-rated cap applies instead

## How the withdrawal limit works

Using CPF for a bank-financed property happens in two stages:

1. **Up to the [valuation limit](https://propertymeter.sg/glossary/valuation-limit/)** (100% of the lower of price and valuation): you can use your Ordinary Account savings, subject to the lease rules.
2. **Up to the withdrawal limit** (120%): you can keep using them only if you have set aside your Basic Retirement Sum in your CPF accounts.

CPF Board notes that there are more constraints on using CPF savings for a bank loan than for an HDB loan. Use the CPF housing usage calculator to see your own limits.

## Example

You buy a condo for $1,000,000 with a bank loan, and the valuation is also $1,000,000.

| Stage | Cumulative CPF you can use |
| --- | --- |
| Up to the valuation limit | $1,000,000 |
| Up to the withdrawal limit, with your Basic Retirement Sum set aside | $1,200,000 |
| After $1,200,000 | Cash only |

If your loan repayments and downpayment from CPF reach $1,200,000, every later instalment must be paid in cash.

## Common mistakes

- **Not tracking your usage.** Check your CPF housing usage regularly, so you are not caught out when you hit the limit.
- **Assuming 120% is automatic.** Going beyond 100% depends on setting aside your Basic Retirement Sum.
- **Ignoring pro-rating.** For short leases, a lower pro-rated cap applies, and no further CPF can be used once all owners together reach it.

## Frequently asked questions

### What happens when I reach the withdrawal limit?

You can no longer use CPF for that property, so the rest of the loan must be repaid in cash.

### Does the withdrawal limit apply to HDB loans?

No. For a resale HDB flat with an HDB loan, you can continue using CPF for the remaining loan after the valuation limit, if you have set aside your Basic Retirement Sum. The 120% withdrawal limit applies to bank loans.

### Why does the withdrawal limit matter when refinancing?

MoneySense advises checking your CPF housing withdrawal limit when refinancing. If you are close to it, more of your future repayments may have to come from cash.

## Sources

1. [How much CPF savings you can use for your home purchase](https://www.cpf.gov.sg/member/infohub/educational-resources/how-much-cpf-savings-you-can-use-for-your-home-purchase) (CPF Board)
2. [How home loans work](https://www.moneysense.gov.sg/how-home-loans-work/) (MoneySense)

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Source: PropertyMeter (https://propertymeter.sg/glossary/withdrawal-limit/). General information only, not financial, legal or tax advice.