Of all the costs involved in selling a Singapore property, CPF accrued interest is the one that catches the most people off guard. It compounds quietly in the background for years, and the full amount only becomes visible at the point of sale.
What CPF Accrued Interest Actually Is
When you use CPF funds to buy a property, those funds leave your CPF Ordinary Account. Had they stayed, they would have earned the CPF OA interest rate — currently 2.5% per annum. Accrued interest is the CPF Board's way of accounting for that opportunity cost. When you sell, you must refund both the principal CPF amount used and the accrued interest back into your CPF accounts before pocketing any cash proceeds.
Why The Numbers Surprise People
If you bought your property 15 years ago and used $200,000 of CPF, the accrued interest alone — at 2.5% per annum, compounding — adds up to roughly $85,000. The total refund due to CPF would be around $285,000, not $200,000. Add in monthly CPF contributions toward the mortgage over those 15 years, each with their own accrued interest, and the total figure can be significantly higher than most homeowners estimate.
How To Find Your Own Figure
Log into the CPF Board's website via Singpass. Under 'My Statement', look for the 'Properties' section. It shows total CPF principal withdrawn and the accrued interest to date. Check it annually — and always before making any decision about selling or upgrading. A proper financial roadmap for any property move starts with this number.