Buying a house

Procedure for buying a new private condominium in Singapore

  1. The booking fee payable for an Option to Purchase (OTP) is between 5 to 10% of the purchase price of the residential property.
  2. Upon granted an Option to Purchase (OTP), the developer will issued the Sale & Purchase agreement (S & P) to the purchaser within 14 days for his lawyer to review.
  3. The option is valid for 3 weeks from the date of delivery to the purchaser or his lawyer. Legal fees will be subject to individual charging rates.
  4. Within 3 weeks period, the purchaser will have to sign and return the Sale and Purchase agreement (S & P) to the developer, together with the balance down-payment (less 20% of the purchase price).
  5. Subsequent progressive payment will be activated upon stages of completion of the development. Table (a) shows a illustration of progressive payment. Please note that different development varies different payment percentage.

 

Progressive Payment

6. Stamp duty – Buyer Stamp Duty (BSD)
7. Additional Buyer Stamp Duty (ABSD)
8. Total Debt Servicing Ratio (TDSR) – Total debt obligations (existing car loan, home loan, etc) cannot exceed 60% of borrower’s total income.
9. Loan-to-Value Limit
a) For individuals obtaining a second housing loan, the LTV limits will be lowered to 50%, or 30% if the loan tenure exceeds 30 years or the loan period extends beyond the borrower’s retirement age of 65.
b) For individuals obtaining third or subsequent housing loans, the LTV limits will be lowered to 40% or 20% if the loan tenure exceeds 30 years or the loan period extends beyond the borrower’s retirement age of 65.
c) For non-individual borrowers, the current LTV limit of 40% will be lowered to 20%.
d) There is no change to the existing LTV limit for individual borrowers who have no outstanding housing loans.

Cooling measure Overall

Procedure for buying a resale private condominium in Singapore
1. Option to Purchase (OTP) issue
2. 1% deposit of the purchase price from purchaser to owner (14 days to exercise OTP)
3. Purchase exercise OTP by paying remaining 4% – 9% of the purchase price. Purchaser must return the signed Acceptance copy to owner’s solicitors.
4. Purchaser completes the sales transaction by paying the remaining 90% – 95% of the purchase price to the vendor.
Other cost and loan to take note
5. Legal fee
6. Stamp duty – Buyer Stamp Duty (BSD)
7. Additional Buyer Stamp Duty (ABSD)
8. Total Debt Servicing Ratio (TDSR) – Total debt obligations (existing car loan, home loan, etc) cannot exceed 60% of borrower’s total income.
9. Loan-to-Value Limit
10. Agent commission

Cooling measure Overall