Purchasing a new launch condo in Singapore is an exciting but structured process. Whether you’re a first-time buyer or an experienced investor, understanding each step can make the experience smoother and more enjoyable. Here’s a comprehensive guide to walk you through the journey:
Step 1: Financial Planning
What to Expect:
Begin by assessing your financial situation, including your income, savings, and any existing debts. Establish a clear budget, keeping in mind the additional costs involved, such as stamp duties, legal fees, and renovation costs.
Key Actions:
- Calculate your Total Debt Servicing Ratio (TDSR) to determine your borrowing capacity.
- Obtain pre-approval for a mortgage with any of your preferred banks. Alternatively, you can explore pre-approval for a mortgage with us, which is non-binding at this stage. You’ll only need to decide on the bank after receiving the Option to Purchase (OTP).
Step 2: Register Your Interest
What to Expect:
This step is optional and applies only if you purchase a condo on launch day. For post-launch condo sales, this step is usually skipped. Registering your interest gives you priority access and updates on the project.
Key Actions:
- Fill out an Expression of Interest (EOI) form and submit a blank cheque for the booking fee (5% of the purchase price). Both the EOI and cheque are non-binding. If you decide not to proceed, your blank cheque will be returned without obligation.
Step 3: Shortlist Condos and Visit Show Flats
What to Expect:
Research different condo launches based on location, amenities, developer reputation, and market trends. Visiting show flats helps you evaluate the unit’s layout, design, and quality of finishes.
Key Actions:
- Make appointments to visit show flats and take notes on each project’s pros and cons.
- While many agents are available, choosing the right one to work with is essential. Look for agents who are up-to-date with market trends, have strong analytical skills, and can guide you throughout your real estate journey. A great agent will help you make informed decisions and plan your real estate portfolio for the long term.
Step 4: Pay the Booking Fee
What to Expect:
Once you’ve selected your preferred unit, you’ll need to pay a booking fee to secure your option to purchase. The booking fee typically represents 5% of the purchase price.
Key Actions:
- Sign the Option to Purchase (OTP) to confirm your intent. These days, most buyers pay the booking fee via internet banking, so it’s important to prepare beforehand. Add the developer’s account details and raise your transfer limit before launch day to avoid delays. Cheques and cashier’s orders are still accepted, but digital transfers are increasingly common.
Step 5: Loan Approval and Legal Representation
What to Expect:
Finalize your mortgage loan with the bank and engage a solicitor to handle the legal aspects of the purchase.
Key Actions:
- Compare loan packages from various banks to find the best deal for your needs. If you need assistance, our mortgage partners can help. They source the entire banking market to offer you various packages, ensuring you get the best fit.
- Secure a Letter of Offer from the bank, which outlines the final loan terms.
- Appoint a solicitor to manage the conveyancing process.
Step 6: Sign the Sales & Purchase Agreement (S&P)
What to Expect:
After receiving the OTP, you must sign the Sales & Purchase Agreement (S&P) within two weeks, legally committing to the purchase.
Key Actions:
- Pay an additional 15% down payment (using cash or CPF) within eight weeks of signing the OTP.
- Pay the Buyer’s Stamp Duty (BSD) and/or Additional Buyer Stamp Duty (ABSD) within two weeks of signing the S&P.
Step 7: Progressive Payments During Construction
What to Expect:
During construction, payments are made in stages as the project hits specific construction milestones.
Key Actions:
- Keep current with construction progress and ensure timely payments as outlined in your S&P agreement.
Step 8: Temporary Occupation Permit (TOP) and Key Collection
What to Expect:
When the condo is ready for occupancy, the developer will receive the Temporary Occupation Permit (TOP), which will allow you to collect your keys.
Key Actions:
- Plan your key collection day. For good luck, bring a pineapple and roll it into your new home, a fun local tradition that symbolizes prosperity.
- Prepare for renovations and ensure you follow any guidelines provided by the developer.
Conclusion
Purchasing a new launch condo in Singapore may seem complex, but following these steps and staying organized can make the process much smoother. Each stage, from financial planning to key collection, is essential to ensuring a successful and stress-free buying experience. Keep researching, seek professional advice, and choose partners to guide you through this exciting journey!
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