If you’re planning to purchase a new condo in Singapore, you might be wondering how the payment process works. Unlike buying a resale property, buying a new condo involves a unique payment schedule known as the Progressive Payment Scheme. This payment scheme is designed to ensure that payments are made to the developer at various stages of the construction process.
In this blog post, we will take a closer look at the Progressive Payment Schedule and answer some of the most common questions that buyers have. We will explain how the payment schedule works when payments are due, and what you need to do to ensure that your payments are made on time.
Whether you’re a first-time buyer or a seasoned property investor, understanding the Progressive Payment Schedule is crucial to ensure a smooth and stress-free purchase process. So, let’s get started!
What Is Progressive Payment Schedule?
The progressive payment schedule for buying new launch private property deals in Singapore is typically 5% to 10%. This refers to the payment by instalments for the purchase of a new launch condo or landed property in the process of being built.
When the construction works of a new launch private property reach a specific milestone, the developer will call for the payment from the new launch condo buyers. During the initial stages, payments are far apart. However, payments become more constant from the 4th stage onwards.
Upon completion of the foundation, one payment must be made. The same applies when the walls are up, the roofs are ready, and so on. When the Temporary Occupation Permit (TOP) is obtained, the payment will end. Developers must send a notice to the buyer’s lawyer upon hitting each construction milestone, to which payment must be made within 14 days.
Ultimately, the progressive payment scheme allows buyers to pay for a property according to the stage of construction it is at. Therefore, if construction gets delayed, payment deadlines also get pushed back.
Lentor Gardens Residences
What are the benefits of having a progressive payment schedule?
1. It allows the buyer to make smaller, more manageable payments throughout the construction period.
Having a progressive payment schedule allows the buyer to make smaller, more manageable payments throughout the construction period. This is because payments are structured according to the stage of construction, and only become more frequent once the works reach the fourth stage. Therefore, the buyer only pays in installments as the works progress, rather than having to make a lump sum payment upfront. In addition, the loan repayments do not increase if the developer is late in completing the milestones. This allows the buyer to break down their payment into smaller, more manageable payments, reducing the financial strain on their budget.
2. It reduces the amount of cash needed upfront for the purchase of a condo
Progressive payment schedules offer an alternative to paying a lump-sum amount upfront when purchasing a condo. Instead, you can stagger your payments over a period of time. This allows buyers to spread out their cash commitments, thereby reducing the amount of cash needed upfront.
For instance, buyers can pay a lower downpayment initially and then make progressive payments over the course of the loan. This spreads out the cash burden, making it easier for buyers to meet the downpayment requirements. On the other hand, if buyers opt for a lump-sum payment, they must have enough cash on-hand to cover the full downpayment amount.
In addition, buyers can also use their Central Provident Fund (CPF) savings to pay part of the downpayment. This reduces the amount of cash needed to purchase the condo, as it can be used to supplement the cash downpayment.
Overall, progressive payment schedules are a great way for buyers to reduce the amount of cash needed upfront when purchasing a condo. It is an attractive option for those who want to spread out their payments and make use of their CPF savings.
3. It helps to manage the cost of living during the construction period
Having a progressive payment schedule helps to manage the cost of living during the construction period by allowing buyers to pay for their new homes in stages, rather than all at once. This makes it easier for buyers to budget for the purchase of their new home, as they are only required to pay for each stage of construction as it is completed. This also means that if the construction process gets delayed, the payment deadlines will be pushed back, giving buyers more time to make the necessary payments. This helps to reduce the financial burden of purchasing a new home, as buyers can spread out their payments over a longer period of time.
4. It can lower stress by spreading out the payments over time
Having a progressive payment schedule can help to lower stress when buying a condo because the payments are made in smaller amounts over a period of time. This allows buyers to spread out the cost and makes it more manageable. It also helps with cash flow management, as the payments are spread out and made in instalments, so that the buyer can manage their finances more effectively. Additionally, the payments are linked to the construction milestones, so even if the developer is late or the milestones are not reached, the loan repayments don’t increase. This helps to keep the cost of the condo more predictable and helps to reduce the stress of buyers.
5. It gives buyers more control over their finances and allows them to budget better
Having a progressive payment schedule helps buyers control their finances and budget better by allowing them to pay for their purchase in stages instead of all at once. This helps to reduce their initial monthly repayments, while still ensuring that they can keep up with their loan repayments even if the developer is late or milestones are not reached. In addition, buyers can also calculate their finances and keep track of their purchases using the Total Debt Servicing Ratio (TDSR) and Loan-to-Value (LTV) ratio to ensure they are not spending beyond their means.
6. It allows buyers to wait for better-priced condos if prices drop
Having a progressive payment schedule helps buyers wait for better-priced condos if prices drop, as it allows buyers to pay for their new property in stages instead of all at once. This gives buyers more flexibility when it comes to budgeting, as they can spread out their payments over a longer period. It also provides an incentive to wait, as buyers can continue to pay in stages while they wait to see if prices will drop, as developers often hold back units for a certain period of time in order to maintain their desired average selling price. By staggering their payments over a longer period of time, buyers are also able to take advantage of any opportunities to negotiate for better prices, as developers may be more willing to offer lower prices for buyers who are willing to commit over a longer period.
7. It can save buyers money on interest payments by paying off the loan over time
Having a progressive payment schedule can help buyers save money on interest payments by allowing them to pay for their new home in stages, rather than all at once. This reduces the risk of the buyer not being able to pay the full amount and allows them to spread out the payments over a longer period of time. This reduces the amount of interest that the buyer has to pay and also helps to reduce the monthly loan repayments. Additionally, banks may offer lower interest rates for buyers who choose to opt for this payment scheme, due to the lower risk.
8. It gives buyers the opportunity to adjust to changes in life circumstances, such as a new job or marriage.
Having a progressive payment schedule can help buyers adjust to changes in life circumstances by providing flexibility when making payments. By spreading the payments out over a period of time, buyers have the option of paying smaller amounts upfront, while still having the ability to make larger payments as they are able. This helps buyers who may have limited funds or income at the time of purchase, as they can pay over an extended period of time, without having to worry about the entire cost being due all at once. Additionally, applicants who are worried about their credit score or income status can benefit from a progressive payment scheme as it helps to reduce their total loan size and interest rate, making the loan more affordable and bearable.
9. It can provide access to additional financing options, such as construction financing.
Having a progressive payment schedule can help access additional financing options by enabling buyers to pay for their new home in stages, rather than all at once. This scheme allows buyers to service their loan progressively as the property is being built, which can help to reduce the amount of initial monthly repayments.
As funds are disbursed from a home loan gradually, this can provide buyers with increased financial flexibility to purchase their property. Furthermore, even if the developer is late or the milestones are not reached, the loan repayments don’t increase. Thus, opting for a progressive payment scheme can be a great option for buyers looking for more affordable financing options.
10. It gives buyers the ability to track the progress of the construction of their condo unit
Having a progressive payment schedule helps buyers track the progress of the construction of their condo unit by providing a timeline of payments that need to be made at each stage of the process. This allows buyers to keep track of the progress of their property and ensure that the developer is meeting their deadlines.
The steps for tracking the progress of the construction of one’s condo unit through the progressive payment schedule are as follows:
- Understand the payment schedule: The first step is to understand the payment schedule set out by the developer. Typically, this includes the initial 5% booking fee, 15% downpayment, and 80% progressive payments.
- Make payments as required: Buyers need to make the payments as required by the payment schedule. This includes the booking fee, downpayment, and any progressive payments that are due.
- Receive notice from the developer: Once each stage of the building is completed, the developers will send the buyer’s lawyer a notice informing them that they need to make the progress payment for that stage.
- Make payment within 14 days: The payment must reach the developer within 14 days of receipt of the notice or else late payment charges will apply.
- Track progress of construction: By making the payments according to the progressive payment schedule, buyers can keep track of the progress of the construction of their condo units. This ensures that the developer is meeting their deadlines in order to complete the project on time.
What are the different stages of paying for a condo in Singapore?
Step 1: Check if you qualify to purchase an executive condominium
In order to be eligible to buy an Executive Condominium (EC) in Singapore, you must meet certain eligibility criteria. These criteria include:
- You must purchase an EC under one of the following HDB schemes: Public Scheme, Fiancé/Fiancée Scheme, Orphans Scheme or Joint Singles Scheme.
- The main applicant must be a Singapore Citizen of age 21 and above, while the co-applicant must be either a Singapore Citizen or Singapore Permanent Resident. If applying under the Joint Singles Scheme, both applicants must be Singapore Citizens above the age of 35. Applicants under the Fiancé/Fiancée Scheme need to be above the age of 18 and have written consent from their parents/legal guardians.
- The household income must not exceed the ceiling of $16,000.
- Neither applicant should currently own any residential properties (locally or overseas) or have disposed of them within the past 30 months.
- Both applicants must also have only purchased up to one HDB, DBSS (Design, Build and Sell Scheme) or EC in the past.
- The downpayment for the EC must be 25%, and you must be able to apply for a bank loan to finance the purchase.
- The Monetary Authority of Singapore (MAS) also has limits in place to prevent homeowners from being over-leveraged and unable to service their home loans.
Step 2: Work out the financing for your executive condominium purchase
When considering the purchase of an Executive Condominium (EC), the first step is to calculate your finances and know how much you can actually afford. This involves taking into account not only the purchase price but also legal fees and valuation fees.
The Monetary Authority of Singapore has set limits that must be taken into consideration. The Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR) both cap the percentage of monthly income you can spend on loan repayments and debt. The MSR states that your monthly mortgage repayment should not exceed 30%, while the TDSR states that combined loan and debt repayments should not exceed 60%.
Once you have calculated your finances, you should search for the cheapest bank loan. This can be done by comparing loan packages from various banks and applying for In-Principle Approval (IPA). An IPA is a bank’s agreement to lend you a particular amount of money after evaluating your financial health and credit history, and is valid for 30 days.
After you have secured the loan, you should appoint a law firm that can handle the legal paperwork associated with the purchase.
By following these steps, you should be able to work out the financing for your Executive Condominium purchase.
Step 3: Make an upfront payment for the stamp duty
Step 1: Calculate the Buyer Stamp Duty (BSD) that needs to be paid. For properties that are priced $1M and above, BSD is 4% of the purchase price. For properties below $999,999, BSD is 3% of the purchase price.
Step 2: If it is your second or subsequent property, you will have to pay the Additional Buyer Stamp Duty (ABSD). Singapore Citizens will have to pay 17% for the purchase of their second property and 25% for the third property onwards. Singapore Permanent Residents will have to pay 5% for their first property, 25% for their second property, and 30% for the third property onwards. Foreigners will have to pay 30% ABSD.
Step 3: After negotiating with the seller, issue an Option fee of 1% of the purchase price, which has to be paid in cash or by cheque/bank transfer to the vendor.
Step 4: Within 2 weeks from the Option date, exercise the Option and sign the Sales & Purchase Agreement (S&PA) at the solicitor’s law firm.
Step 5: Upon signing the S&PA, you will have to pay a 15% down payment within 8 weeks from the Option date. This can be paid with cash or CPF Ordinary Account (OA).
Step 6: Within 2 weeks from the signing of the S&PA, you will have to pay the BSD and ABSD.
Step 7: Pay any other miscellaneous costs such as legal fees and stamp duties. Note that you can use CPF to pay for your legal fees as well.
Step 4: Exercise the option to purchase and sign the sales & purchase agreement
Step-by-Step Instructions for Exercising the Option to Purchase and Signing the Sales & Purchase Agreement for a Condo in Singapore:
- Identify and negotiate with the seller for the right price.
- Pay a 5% booking fee in cash to obtain the Option to Purchase (OTP).
- Within 14 days from the date of the OTP, the developer will deliver the Sales & Purchase Agreement (S&P).
- Sign and exercise the OTP within 21 days (including Saturdays/Sundays/Public Holidays).
- Within 8 weeks after exercising the OTP, pay the balance of the down payment of 15% of the purchase price by either cash or CPF funds.
- Within 2 weeks of signing the S&P agreement, pay the Buyer’s Stamp Duty (BSD).
- If it is your second and subsequent property, pay the Additional Buyer’s Stamp Duty (ABSD).
- After HDB has approved your application to purchase the EC, which takes about a month, receive a Sales and Purchase (S&P) Agreement from the developer.
- Within 21 days, sign and mail back the S&P Agreement to exercise your right to purchase the unit.
- Pay the remaining 20% downpayment plus Buyer’s Stamp Duty, using HDB Housing Grants, CPF monies, or cash.
- Get your keys!
Step 5: Begin monthly loan repayments
Step 1: Calculate your finances to determine how much you can afford to pay for your monthly installments.
Step 2: Note the Total Debt Servicing Ratio (TDSR) which is currently set at 55% of your gross monthly income. This includes other loans such as car loans, personal loans, and credit card payments.
Step 3: Take note of the Loan-to-Value (LTV) ratio which is 75%, meaning the bank can loan you up to 75% of the purchase price.
Step 4: Check out the loan packages offered by different banks and apply for an In-Principle Approval (IPA). This will allow you to determine the amount of money the bank is willing to lend you.
Step 5: If the property you are interested in is a new launch development, find out if they follow the progressive payment scheme by the Housing Developers Rules. This payment schedule is typically 5-10% of the purchase price at certain construction stages.
Step 6: Once the Temporary Occupation Permit (TOP) is obtained, you will need to begin making your loan payments. These payments will increase over time as more funds are disbursed to the developers.
Step 7: If you decide to get a financing option from your lender, bear in mind the bank interest rates on home loans range from 1.25% to 1.6% per year with lock-in periods of up to two years.
Step 8: Once you have all the information, you can start making your loan payments and continue making them until the full amount of your loan is paid off.
Step 6: Collect your keys to your new condo walk through Stag
Step 1: Check out the latest new launches on MOGUL.sg and use its 3D map and smart search functions to help with your search. When viewing the showflat and the actual condo site, make sure to take note of the distances to the MRT station, bus stops, schools, supermart etc.
Step 2: After you decide on the condo you want, submit an Expression of Interest form, along with an unsigned blank cheque to the developer. The developer will then invite you to select a unit on the actual launch day.
Step 3: Approach your bank to secure a loan for the new condo. Your bank will issue you with a Letter of Offer, specifying the terms and bank loan offered to you.
Step 4: On the launch day, submit your signed Option to Purchase (OTP)and the booking fee. The developer will then assign the selected unit to you, and the unit will be taken off the market.
Step 5: Pay the remaining sum owed on the OTP, including the additional costs such as stamp duties, legal fees and the downpayment.
Step 6: Once the project reaches TOP, you can collect your keys to your new launch condo! During this period, you will have 12 months to report any defects under the Defects Liability Period (DLP). Once all defects are remedied and past the DLP, the full payment will be disbursed to developers, and you will begin the monthly mortgage of the property in full.
Step 7: Finalise sales & purchase agreement (S&P)
Step 8: Start progressive payment scheme followed by your downpayment
Step 1: Secure the Option To Purchase (OTP)
The first step to starting a progressive payment scheme for a condo in Singapore is to secure the Option To Purchase (OTP). This is an agreement between you and the developer that allows you to buy the property at the current market price. Your lawyer will help you with this process.
Step 2: Exercise OTP and sign S&PA
Once the OTP is secured, you will need to exercise it and sign the Sale and Purchase Agreement (S&PA). This agreement will contain the terms and conditions of the purchase, as well as the progressive payment scheme details.
Step 3: Make Downpayment and pay for any stamp duties
The next step is to make the downpayment and pay any associated stamp duties. The amount of the downpayment and stamp duty payable will depend on the purchase price of the condo and the progressive payment scheme details.
Step 4: Start of monthly loan repayments
Once the downpayment is made and the OTP is exercised, you can start making monthly loan repayments. The amount of the loan repayments will depend on the amount of the loan, the loan tenure and your loan agreement.
Step 5: Calculating PPS for BUC Property
Next, you will need to calculate the progressive payment scheme (PPS) for the BUC property. This can be done by calculating the total cost of the property, and then dividing it into several instalments that need to be paid when certain milestones in the construction process are reached.
Step 6: Get Temporary Occupation Permit (TOP)
Finally, the final payment will need to be made once the Temporary Occupation Permit (TOP) is obtained. This is when your condo will officially be ready for occupation and you can move in.
By following these steps, you can start a progressive payment scheme for a condo in Singapore. It is important to remember that your payments will need to be completed on time in order to avoid any late payment charges.
Step 9: Secure OTP before completing all required signatures
It is important to secure an Option to Purchase (OTP) before completing all required signatures for a condo purchase in Singapore, as it will give you a certain amount of time to decide whether or not you want to proceed with the purchase. During this period, you can search for the cheapest bank loan and secure Approval In Principle (AIP) before committing to the purchase. If you decide to proceed, you can then sign the Sale & Purchase Agreement (S&PA) and finalise the loan with the bank. If you decide not to proceed, you will only forfeit a portion of the booking fee. Therefore, securing an OTP prior to signing any documents will give you flexibility and time to make an informed decision before committing to the purchase.
Step 10: After 10 Evelyn, compute the occupancy period and pay accordingly
Step 1: Pay a 5% booking fee in cash to obtain the Option to Purchase (OTP). This fee is non-refundable and must be paid before the OTP expires after three weeks.
Step 2: Receive the Sale & Purchase Agreement (S&PA) from the developer within 14 days from the date of the Option.
Step 3: Pay the specified amount for each stage of construction. This includes a 15% payment upon signing the S&PA, 10% after completion of foundation works, 10% after completion of reinforced concrete framework, 5% after completion of partition walls, 5% after completion of roofing, 5% after completion of door sub-frames/door frames, window frames, electrical wiring (without fittings), internal plastering and plumbing, and 5% after completion of the carpark, roads and drains servicing the housing project.
Step 4: Pay the remaining 25% of the purchase price upon receipt of the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC). This can be done with a lump sum payment or an installment plan.
Step 5: Collect the keys and officially move into your new home.
How much should one be prepared to pay for a condo in Singapore?
The cost of a condo in Singapore depends on the size and location of the unit. Prices can range from $669,999 for a 398 sqft unit in Parc Elegance, to $2,250,000 for a 743 sqft unit in Cairnhill Nine. If one is taking a 30-year home loan at an interest rate of 4% per annum, they should be prepared to pay for the monthly instalments accordingly.
What is the progressive payment schedule for a new condo in Singapore?
The progressive payment schedule for a new condo purchase in Singapore typically involves the following sequence of events:
- Booking or Option Fee, which is payable in cash.
- Buyer’s Stamp Duty, which is payable in cash or CPF OA within 14 days upon signing the Sales and Purchase agreement.
- Down Payment, which is payable in cash and/or CPF within 8 weeks from the signing of Option of Purchase.
- Upon completion of foundation work, a payment of 10% is due.
- Upon completion of reinforced concrete framework, a payment of 10% is due.
- Upon completion of brick walls, a payment of 5% is due.
- Upon completion of ceiling/roofing, a payment of 5% is due.
- Upon completion of doors and windows frames (are in position), the electrical wiring (without fittings) and plumbing and internal plastering, a payment of 5% is due.
- Upon completion of car park, drains and roads serving the project, a payment of 5% is due.
- Upon obtaining Temporary Occupation Permit (TOP), a payment of 25% is due.
- Upon completion date, a payment of 2% is due.
- Upon production of the Certificate of Statutory Completion, a payment of 8% is due.
- On the expiry of 12 months from the date of notice to take vacant possession, a payment of 5% is due.
What fees are involved when buying a new condo in Singapore?
When buying a new condo in Singapore, there are various fees that need to be taken into account. These include the booking fee (5% of purchase price, paid in cash), the Option Fee (4% of purchase price, paid in cash), the Buyer’s Stamp Duty (BSD), the Additional Buyer’s Stamp Duty (ABSD), legal fees (S$2,500 – S$4,000), valuation fee (S$350 – S$500), and the progress payments for the various stages of construction (foundation work, reinforced concrete framework, partition walls, roofing, door, window frames, electrical wiring, and piping). BSD rates depend on the purchase price of the property and ABSD rates depend on the buyer’s citizenship. In addition, the buyer must also make a minimum 5% cash downpayment of the purchase price.
What documents are required when making a payment for a new condo in Singapore?
When making a payment for a new condo in Singapore, you will need a few documents to proceed. Firstly, you need to get an Approval In Principle (AIP) from the bank, which is valid for 30 days. You will be required to provide your income documents for this, such as payslips, CPF contribution, etc. You will also need to appoint a law firm to handle the conveyancing process. The law firm must be recognised by the bank, and the cost of their services usually ranges from $2,500 to $3,000. You can use your CPF to cover the law firm’s fees.
Secondly, you will need to pay a booking fee of five per cent of the purchase price when selecting the unit you want. This must be done in cash, and you will be given the Option To Purchase (OTP) at this point. Along with this, you will receive the Property Details Information (PDI) containing all the relevant details such as floor plans and condo regulations.
Once the Sale & Purchase (S&P) Agreement is sent to you, your law firm will vet it and advise you if there is anything unusual. After signing the S&P, you have 14 days to pay the stamp duties such as Buyers Stamp Duty (BSD) and Additional Buyers Stamp Duty (ABSD), if applicable. These can be paid with a combination of cash and CPF (only applicable for new launch condos).
What is the loan quantum for a new condo in Singapore?
The loan quantum for a new condo in Singapore depends on the loan-to-value (LTV) limit, which is typically up to 75% of the purchase price. For example, if a newlywed couple Eddie and Alexandra, who are both Singapore citizens with a combined income of S$14,000/month, and CPF balance of S$60,000, are interested in purchasing a unit in a new development that hasn’t started construction yet, at a price of S$1,500,000, then their loan quantum would be S$1,125,000.
What is the maximum loan-to-value for a new condo in Singapore?
The maximum loan-to-value (LTV) for a new condo in Singapore depends on the number of outstanding loans you have. If you have no outstanding loans, the LTV is 75%, meaning you need to put down a S$250,000 deposit or 25% of the purchase price. If you have one outstanding loan, your LTV is around 45%, which means you need to raise more cash to meet the minimum downpayment for the condo.
What is the buyer stamp duty for a new condo in Singapore?
The Buyer’s Stamp Duty (BSD) for a new condo in Singapore depends on the purchase price of the property, as well as the number of other properties owned and the buyer’s nationality. For example, if the purchase price of the property is S$1,000,000, then a Singaporean would have to pay S$24,600 in BSD. For Permanent Residents, the BSD is S$74,600 (including an Additional Buyer’s Stamp Duty of S$50,000) and for foreigners, the BSD is S$324,600 (including an Additional Buyer’s Stamp Duty of S$300,000).
How do I make a payment for a new condo in Singapore?
Step-by-step Guide to Making Payment for a New Condo in Singapore
- Search for the cheapest bank loan and obtain Approval In Principle (AIP) from the bank. You will need to provide your income documents such as payslips, CPF contribution, and other documents to the bank. The AIP is usually valid for up to 30 days.
- Appoint a law firm to handle the purchase process.
- Calculate the downpayment required. The downpayment is typically 25% of the purchase price, with 5% payable in cash and the remaining 20% payable in cash or CPF.
- If you are buying a property under construction, you may be able to pay via a progressive payment scheme. This allows you to pay a certain percentage at each stage of the construction process.
- Make the payment for the downpayment and other costs such as stamp duty and legal fees. You can pay with your cash and/or CPF, depending on your financial situation.
- Finally, sign the agreement and you will be the proud owner of your new condo. Enjoy!
What is the timeline for a new condo in Singapore?
Buying a new launch condo in Singapore typically starts with visiting the developer’s show flats for a viewing appointment, usually 2-3 weeks before the official date of the launch. At the show flat, prospective buyers can view the actual model of the development, site plan, and walk-through of floor plan, along with various provisions for the unit.
After the viewing, if buyers decide to purchase the new launch condo, they must pay a booking fee of 5% in cash. Within 8 weeks from the date of option to purchase, the buyers must pay an additional 15% of the total purchase price, 5% of which can be paid in cash or CPF, while the other 10% must come from a bank loan.
Along with the payment, buyers are also required to pay the Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD). BSD is computed based on the purchase price or the market value of the property, whichever is higher, while ABSD rates depend on the property type, as well as the buyer’s residency status in Singapore.
The progressive payment scheme then continues on a monthly basis with each phase of construction being completed. For example, the foundation work will typically require a 10% payment, while the completion of the building, roads and drainage works requires a 25% payment. Finally, the last payment of 15% of the total purchase price is made when the Certificate of Statutory Completion has been issued.
Overall, the timeline for a new condo in Singapore can take up to 12 months, depending on the size of the property and the speed of construction. For more information on new launch condos, buyers can refer to property resources such as the 3D map at MOGUL.sg.
What are the eligibility conditions for a new condo in Singapore?
If you are looking to purchase a new condo in Singapore, there are certain eligibility conditions you must meet. First, you must be a Singapore Citizen of age 21 and above or a Singapore Permanent Resident of age 18 and above. You must also not exceed the household income ceiling of $16,000 and must not own any residential properties (locally or overseas) or have disposed of them within the past 30 months. Additionally, you must not have purchased up to one HDB, DBSS (Design, Build, and Sell Scheme), or EC in the past. If you don’t meet these eligibility criteria, you may still be able to purchase an HDB resale flat, regular private condominium, or landed private property.
When you have decided to purchase a new condo, you must start by settling on the financial part. Down payments for private properties in Singapore can be quite hefty, so make sure to factor in the amount you need to pay upfront. After that, you can begin your search for potential projects by checking out the latest new launches on MOGUL.sg, which has a 3D map and smart search functions to help streamline your search.
What are the Singapore Housing Developers Rules (HDB) for a new condo in Singapore?
The Singapore Housing Developers Rules (HDB) outlines the payment scheme to be followed when purchasing a new condo in Singapore. The payment scheme typically follows a progressive payment model, where a buyer makes a downpayment and then pays progressively in installments as the building is developed. Generally, the downpayment is 20% of the total purchase, and the buyer is eligible for up to an 80% loan depending on their eligibility.
For property under construction, the break down of the downpayment is usually as follows: 5% upon signing the Option to Purchase (OTP), 5% upon signing the Sales and Purchase Agreement (S&P), and 10% upon approaching the legal completion date. For resale and TOP properties, the downpayment consists of 5% upon signing the OTP, 5% upon signing the S&P, and 10% upon obtaining the Certificate of Statutory Completion (CSC).
For Executive Condominiums (ECs) purchased under the Deferred Payment Scheme, the downpayment consists of 5% upon signing the OTP, 5% upon signing the S&P, and 10% upon completion of the building. The timeline for HDB’s Build-To-Order (BTO) flats is slightly different, with the downpayment consisting of 5% upon signing the OTP, 5% upon signing the S&P, and 10% upon obtaining the Temporary Occupation Permit (TOP).