Acerca de
How Much is the Down Payment for a Condo?
1. Buyer's Stamp Duty (BSD)
BSD is tax paid on documents signed when you buy or acquire property located in Singapore. It's applicable on all residential property purchases, regardless of whether you're a first-time buyer. The BSD rate is calculated based on the purchase price or market value of the property, whichever is higher:
-
First $180,000: 1%
-
Next $180,000: 2%
-
Next $640,000: 3%
-
Remaining amount: 4%
Assuming you bought a private condo worth $1 million, you would have to pay:
($180,000 × 1%) + ($180,000 × 2%) + ($180,000 × 3%）= $24,600
2. Additional Buyer's Stamp Duty (ABSD)
ABSD is a tax levied on property buyers who already own a property, on top of the Buyer's Stamp Duty. ABSD is calculated based on the purchase price or market value of the property, whichever is higher:
-
Singaporeans: 17% on their 2nd residential property, 25% on their 3rd and subsequent residential properties
-
PRs: 5% on their 1st residential property, 25% on their 2nd, and 30% on their 3rd and subsequent residential properties
-
Foreigners: 30% on any residential property
(Accurate as of 16 Dec 2021)
You can use CPF Ordinary Account (OA) to pay Stamp Duty (BSD or ABSD), but you must pay in cash first then request a reimbursement from CPF.
3. LTV and MCD
Loan-To-Value Ratio (LTV) refers to the amount that you can borrow from the bank depending on the number of outstanding home loans you have. This will affect your Minimum Cash Downpayment (MCD).
-
No outstanding house loans: 75% or 55%* LTV Limit; 5% MCD (for 75% LTV) or 10% MCD (for 55% LTV)
-
1 outstanding house loan: 45% or 25%* LTV Limit
-
2 or more outstanding house loans: 35% or 15%* LTV Limit; 25% MCD
* Take the lower LTV limit if the loan tenure exceeds 30 years (25 years for HDB flats), or the loan period extends beyond the borrower's age of 65.
For instance, if you are a first-time homebuyer, the total downpayment for a condo is 25% of the condo's price. At least 5% of this 25% have to be paid in cash, this is referred to as Minimum Cash Downpayment. The outstanding condo downpayment, which is 20% of the condo's price, can be paid in CPF or cash.
4. Professional Legal Fees
The conveyance fee is a fee solicitors charge to organize all closing paperwork during a real estate transaction. They are also vital during the transfer of ownership. They average about $2,000 to $3,000.
5. Valuation Fee
Valuation fees are what you pay to get your property valued. They typically cost between $300 to $500.