Buying a resale private home in Singapore follows a well-worn path. The order matters: get the money settled before you fall in love with a place, because the Option to Purchase runs on a clock.
Work out what you can actually spend
Two limits apply at once. Your income caps the loan through , and your cash and CPF cap the down payment and stamp duties. Whichever binds first is your real budget.
Run the numbers before you view anything.
Get an Approval in Principle from a bank
An AIP is a bank's written indication of how much it will lend you, usually valid for a month or so. It costs nothing and it means that when you find the right place you can commit without guessing.
Banks assess you at a rate floor of 4.0%, not the rate they quote you, and cap all your repayments at 55% of income. Clearing a car loan can move your budget more than a pay rise.
View, and check the numbers behind the asking price
Ask what similar units in the same development actually sold for, then check it yourself — an agent's “market price” is a negotiating position. Our price check does this from URA's records.
On a leasehold home, find the lease start year and work out what is left. On anything above the ground floor, ask about the management fee and any upcoming works the MCST has voted on.
Negotiate and take the Option to Purchase
You pay an option fee, normally 1% of the price, and the seller grants you an Option to Purchase. That buys you the exclusive right to go ahead, usually for 14 days (the “option period”).
If you walk away, you lose the option fee. If you exercise and then fail to complete, you can lose far more. Do not take an OTP before your financing is settled.Exercise the option
Within the option period you sign and return the OTP and pay the balance of the deposit, normally another 4%, bringing you to 5%. This is the point of no return: you are now contractually committed to buy.
Appoint a conveyancing lawyer before this, not after. They will handle the searches, the stamp duty filing and the completion accounts.
Pay the stamp duties
is due within 14 days of exercising, and too if it applies to you. Late payment attracts a penalty. Your lawyer normally files it for you.
ABSD is the single largest line for most second-home buyers, and it cannot be borrowed. See stamp duties explained.
Complete, and collect the keys
Completion is usually 8 to 12 weeks after exercising. The bank disburses the loan, your CPF is released, your lawyer settles the balance with the seller's lawyer, and the title transfers. You get the keys on completion day.
Your first mortgage repayment follows roughly a month later.