CALLFORM

How much cash do I need to fork out as a downpayment to purchase a Private Condominium or Executive Condominium in Singapore? What is the cash and CPF needed at the different stages? Can I use my Central Provident Fund (CPF) for purchase? What are the other charges involved in buying a property and can I use my CPF to pay them?

These are the questions we typically received from our clients when they are looking to buy a Singapore Residential Property.

For the purpose of this article, we assumed that you are aware of the loan you can get from the bank or your budget to buy your property. If you need a quick assessment of your financial budget based on your age, income, expenses, existing property portfolio, ABSD applicable, etc., you may use this online property affordability calculator or ask a mortgage banker.

In this article, we will discuss the Cash and CPF that is required to purchase your property based on your loan amount and the stages where CPF can be used. We will also sum up with the minimum cash you need to purchase the property.

Let’s look at two very common scenarios:

  1. Buying your first property.
  2. Buying your second property and financing an existing property.

Note:

  • Scenario 1 is applicable to buying of Private Condo (New or Resale) and Executive Condo (New or Resale).
  • Scenario 2 is applicable to buying New Private Condo or Resale Private Condo / Executive Condo.
  • ABSD may be payable depending on your nationality and the number of existing properties you own. You may refer to this article “What is ABSD?” to find out the ABSD payable according to your profile.
Queens Peak

Scenario 1: Buying your first property

Assuming you are a Singapore citizen buying your first property, a 3-Bedroom Condo at Parc Riviera with a price tag of SGD 1,100,000.

Here would be the breakdown of the Cash and CPF you need at different stages when buying your property:

Payment% of Purchase PriceAmount to Pay ($)Payment ByRemarks
Book Day - Option to Purchase (OTP) Granted555,000Cash
Upon signing of Sales and Purchase Agreement (S&P) / Option-to-Purchase15165,000Cash and/or CPF OACash needed if insufficient CPF Funds.
Balance 80% of Purchase Price upon sales completion of the resale property / completed project or upon request by developer for condominium under construction80880,000Bank LoanInterest are payable to the bank and mortgage loan repayment can be paid by Cash/CPF
Duties & Fees Payable for Purchase of Property
Buyer Stamp Duty4% of Purchase Price - $15,40028,600Cash and/or CPF OACash needed if insufficient CPF Funds.
Mortgage Stamp Duty500Cash and/or CPF OACash and/or CPF OA
Valuation of PropertyApprox. $300CashCheque or Cashier's Order
Legal Fee (excluding GST)3,000Cash and/or CPF OACash needed if insufficient CPF Funds.
Total Cash & CPF required for the downpayment (Including stamp duties and other fees)252,400
Minimum Cash required for the downpayment (Including stamp duties and other fees)55,300

 

Home Loan Packages

Scenario 2: Buying your second property and financing an existing property.

 Assuming you a Singapore citizen buying your 2nd property which is a 2-bedroom condo at 26 Newton for SGD 1,450,000.

Here would be the breakdown of the Cash and CPF required at various stages of the transaction process:

 

Payment% of Purchase PriceAmount to PayPayment ByRemarks
Book Day - Option to Purchase (OTP) Granted572,500Cash
Upon signing of Sales and Purchase Agreement (S&P) / Option-to-Purchase15217,500Cash
1 st Balance of 5% of the Purchase Price after sales completion of resale property / completed project or upon request by the developer for condominium under construction.572,500Cash
Next 2 nd Balance of 25% of the Purchase Price after sales completion of resale property / completed project or upon request by the developer for condominium under construction.25362,500Cash and/or CPF OACash needed if insufficient CPF Funds.
Balance 60% of Purchase Price after completion for resale property or upon request by developer for new condominium50725,000Bank LoanInterest are payable to the bank and mortgage loan repayment can be paid by Cash/CPF
Duties & fees payable for purchase of property
Buyer Stamp Duty 4% of Purchase Price - $15,40042,600Cash and/or CPF OACash needed if insufficient CPF Funds.
Additional Buyer Stamp Duty
(Singaporean's 2nd Property)
7% of Purchase Price101,500Cash and/or CPF OAABSD is payable for the purchase of 2 nd Property.

Cash needed if insufficient CPF Funds.
Mortgage Stamp Duty500Cash and/or CPF OACash and/or CPF OA
Valuation of PropertyApprox. $300CashCheque or Cashier's Order
Legal Fee (excluding GST)3,000Cash and/or CPF OACash needed if insufficient CPF Funds.
Total Cash/CPF required for the downpayment (Including stamp duties and other fees)437,500
Minimum Cash needed for the downpayment (Including stamp duties and other fees)290,300
Total Cash/CPF Needed for Purchase before Bank Financing Kicks in872,900
Minimum Cash Needed For Purchase before Bank Financing Kicks in362,800
Sophia Hill

We hope the above examples would give you a good understanding of the amount of Cash and CPF you need when buying your property. And if you need help to work out your property budget with the estimated amount of loan you can get, cash required for the down payment, monthly repayment to be paid, ABSD payable, Legal Fees, etc., you check out this free online tool, Property Budget Calculator, provided by our partner, Realila.  It’s a very handy tool you will never regret using. If you prefer to talk to our consultant to help you to work out your finance to purchase your next property, you can also drop us a note using the contact form below.

26 Newton Condo

Enquiry Form

(65) 6100 1344 (Phone)



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Note: The above article is intended to provide general information. Although we endeavour to ensure that the information contained herein is accurate, we do not warrant its accuracy or completeness or accept any liability for any loss or damage arising from any reliance thereon. The information herein should not be treated as a substitute for separate professionall advice concerning particular real estate situations. If you would like to obtain advice, please do not hesitate to get in touch with us at 61001344 or [email protected]