5 Steps to Owning a Property in SG
1. Property Agent
APPOINT PROPERTY AGENT
Stay with 1 agent per transaction because appointing > 1 representative would lead to confusion and embarrassment since most agents in Singapore share the same portfolio.
Be frank, such as the dimensions, location, and price. Clear instructions will help your agent direct you to the ideal residence quickly and accurately.
2. Apply Bank Loan — In Principle Approval (IPA)
GET BANK LOAN IPA
The maximum loan amount for housing loans is determined by the Total Debt Servicing Ratio (TDSR) and Loan-to-Value (LTV) limit.
TDSR is currently capped at 55%, which means that new mortgages cannot cause the borrower's total monthly loan repayments (including car payments, student loans, credit card debts, etc.) to exceed 55% of their monthly income.
LTV limit is currently capped at 85% for HDB loans and 75% for bank loans. This limit decreases if any outstanding housing loans, or if the loan tenure exceeds 30 years (or 25 years for HDB loans), or if the loan period extends beyond the borrower's age of 65.
The maximum loan tenure is also capped at:
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30 years for HDB flats (or 25 years for direct HDB loans)
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35 years for non-HDB properties
3. Decide on a Property
SET CRITERIA
SEARCH PROPERTIES
GO FOR VIEWING
SHORTLIST
NEGOTIATE PRICE & TERMS
DECIDE FINAL CHOICE
4. Obtain Option to Purchase (OTP)
PAY 1% OPTION FEE
OBTAIN OTP
5. Complete the Resale Private Transaction
SIGN BANK LETTER OF OFFER
APPOINT CONVEYANCING SOLICITOR (LAWYER)
PAY 4% EXERCISE FEE — WITHIN 14 DAYS OF OPTION
PAY STAMP DUTY (BSD) & ABSD* — WITHIN 14 DAYS OF EXERCISE
INSPECT HOUSE BEFORE COMPLETION
PAY BALANCE DOWN PAYMENT JUST BEFORE COMPLETION
Latest BSD Rates:
Latest ABSD Rates:
While the agency commission is borne by the seller, which is usually 2% of the purchase price, you will have to bear the legal cost.