A private condo purchase has three separate tests: you must be allowed to buy, able to fund every payment, and satisfied with the unit and contract. Passing the bank’s affordability assessment does not settle the other two.
This guide covers ordinary private condominiums bought by individuals in Singapore, with separate steps for resale and uncompleted units from licensed developers. Executive condominiums, landed homes, trusts and company purchases need additional checks. Figures below are hypothetical, not current asking prices or bank offers.
1. Check your buying eligibility before paying a deposit
If you own an HDB flat, check your minimum occupation period and the rules for retaining or disposing of it before committing to private property. Paying ABSD does not override an HDB restriction. Start with the URA buyer checklist and confirm your household’s position with HDB.
A foreign individual can generally buy an ordinary condominium unit without approval under the Residential Property Act. That does not extend to every property advertised as a condo or cluster home: strata landed property outside an approved condominium development is restricted. Check the title and SLA’s property categories. Permission to buy and the tax payable are separate questions.
2. Get a written funding plan, not just an instalment estimate
Ask the bank for an assessment before making an offer, and appoint a conveyancing lawyer early enough to review the documents before you sign. List existing housing loans, other debts, cash and CPF that can actually be used. Sale proceeds from another home belong in the plan only when their release dates support the purchase deadlines.
For an individual with no outstanding housing loan, the bank-loan LTV ceiling is normally 75%, or 55% if the lower tier applies. For a private home, a tenure above 30 years or extending beyond age 65 triggers that lower tier. The corresponding minimum cash downpayments are 5% and 10%. Existing housing loans bring different limits; the number of properties owned is not the same as the number of housing loans outstanding. The standard TDSR threshold is 55%, and the bank can lend less than the regulatory maximum. See MoneySense’s bank-loan and TDSR explanation.
The price above valuation needs cash. CPF use also depends on the property and remaining lease, not just the OA balance. Check CPF Board’s downpayment guidance and housing-use limits. Have the lawyer identify which payments need cash first and whether any permitted CPF reimbursement will arrive later.
3. Put stamp duty into the budget before choosing the ownership structure
Under the ABSD rates applying from 27 April 2023, a Singapore citizen’s first residential property attracts no ABSD, a second attracts 20%, and a third or subsequent property 30%. For permanent residents the corresponding rates are 5%, 30% and 35%. The general foreign-individual rate is 60%, not 65%; specific remissions may change the result. Joint ownership and existing interests need individual assessment.
IRAS assesses ABSD using the buyer’s profile at acquisition. For an ordinary purchase, the relevant date is the earlier applicable acceptance of the OTP or sale agreement, not automatically the date the seller grants the option. Do not budget on a married-couple refund or other remission until your lawyer checks every condition and deadline.
BSD is separate and uses the higher of purchase price or market value. At S$1.5 million, assuming that is also market value, residential BSD is S$44,600: S$1,800 + S$3,600 + S$19,200 + S$20,000 under the rates effective from 15 February 2023. At S$2 million, BSD is S$69,600.
| Funding item | Amount |
|---|---|
| Loan, assuming approved 75% LTV and matching valuation | S$1,125,000 |
| Cash minimum towards price, assuming 5% tier | S$75,000 |
| Remaining price funded by permitted CPF or more cash | S$300,000 |
| BSD, separate from the price | S$44,600 |
| Total funds outside the loan, before other costs | S$419,600 |
This assumes no ABSD and no loan or CPF shortfall. It excludes legal and valuation fees, mortgage duty, insurance, renovations and moving. The S$75,000 minimum is not a complete cash budget. Keep a separate household reserve for mortgage payments and essential expenses if income falls.
4. Inspect what your household will actually live with
For a resale home, inspect the actual unit and ask for the approved plans, renovation records, maintenance charges and available management-corporation information. Investigate leaks and unauthorised alterations before agreeing who bears the cost. Review any existing tenancy and whether the sale promises vacant possession. A tenanted purchase may not match your intended move-in date.
Test bedroom furniture sizes, ventilation, afternoon heat, noise and the route you will take with children, shopping or mobility aids. Compare completed transactions for similar units separately from asking prices. For an investor, obtain evidence for rental assumptions and allow for vacancy, repairs and ownership costs. No advertised yield substitutes for a budget using the actual purchase cost.
5. Follow the correct contract route
Resale condominium
Get your lawyer to check the OTP before paying for it. Identify the option fee, expiry date and time, exercise method, further deposit, completion date, included items and any tenancy. These are contract terms: do not assume every private resale option gives the same 14-day period or every transaction completes on the same timetable.
Before exercise, settle the loan offer, valuation, tax calculation and cash/CPF payment schedule. If something essential remains unresolved, obtain advice while the option is still open. Losing an option fee and defaulting after entering a binding purchase can have very different consequences. CEA provides resale checklists and optional contract templates.
Uncompleted unit from a licensed developer
URA’s current booking guide specifies a booking fee of 5% to 10%. The developer must deliver the sale agreement and title documents within 14 days of the option. The exercise period runs for three weeks after delivery of those documents, not simply three weeks from booking.
Exercise involves signing and returning the agreement and paying the balance to reach 20% of the price. The developer may allow that balance payment within eight weeks from the Option Date. Have your lawyer confirm the actual arrangement. If the option expires unexercised, the developer may forfeit 25% of the booking fee and refund 75%. Do not mistake this for a fully refundable reservation.
Check the unit’s plans, specifications, parking arrangements and the staged payment schedule. Build a funding calendar for progress payments and any rent you will pay while waiting. A show flat, an estimated TOP date and a contractual vacant-possession deadline answer different questions.
6. Complete the legal and practical handover
Ask your lawyer to record the stamping deadline and retain the certificate. IRAS says documents should be stamped before signing, with no penalty if stamped within 14 days after signing in Singapore, or within 30 days after first receipt in Singapore when signed overseas. Do not count from an assumed key-collection date.
Before resale completion, reconcile the completion statement, bank drawdown, CPF release and remaining cash. Arrange the agreed inspection and document meter readings, keys, access cards and included items. For a developer purchase, confirm key collection, defect-reporting procedure and legal completion separately with the developer and lawyer. TOP alone does not mean all contractual and payment steps are finished.
The buying decision is ready only when the contract, money and intended use fit together. If the home works only with a higher valuation, an uncertain tax refund or uninterrupted rent, revise the budget before committing.
Updated 20 September 2026. General buyer guidance checked against the linked primary sources. This replaces incorrect tax figures and universal purchase deadlines in the earlier version. Obtain transaction-specific advice from your conveyancing lawyer and lender.
Featured photograph: Robertson Quay in July 2011 by Bryanmackinnon, CC BY-SA 3.0. Resized for the web; historical neighbourhood context, not evidence of current construction or availability.
