A 10-Step Guide to Buying
A resale condo
Updated May 2024
The resale market in Singapore has remained consistently active, even with the shorter remaining leases of properties. This can be attributed to the following main reasons:
- Immediate Occupancy
- Immediate Rental Income
- Physical Assessment
- Preferred Location
Following is a 10-step guide outlining the purchasing process to help you understand what to anticipate.
If you find yourself confused during your buying process , feel free to revisit this guide. Remember, stick to the fundamentals! 😊
Step 1. Get an In-Principal Approval
Step 1. from a bank
Step 2. Search, shortlist and go for viewings
Step 3. Negotiation
Step 4. Secure Option to Purchase (OTP)
Step 5. Hire Conveyance Lawyer
Step 5. & Secure Home Loan
Step 6. Exercise OTP
Step 7. Pay Buyer’s Stamp Duty
Step 8. Prepare the Balance of
Step 8. Purchase Price
Step 9. Final Inspection
Step 10. Completion Day
Step 1: Get an In-Principal Approval (IPA) from a Bank
An IPA can be easily requested through a mortgage broker or a mortgage banker.
With an IPA, you will have a better idea of financing the property, for instance, the amount of cash outlay and CPF savings needed, as well as the subsequent monthly mortgage.
Step 2: Search, Shortlist and Go for Viewings
If you have engaged a real estate agent, he/she will locate suitable properties according to your criteria and schedule viewings for you.
If you are handling this independently, you can explore property listings on platforms such as Property Guru and 99.co, where only verified agents can list properties.
Step 3: Negotiation
- To prepare yourself, check out past transaction values in the vicinity which are available to the public on the URA Portal.
- Various terms may also be brought in, for instance, the handover date.
Step 4: Secure the Option to Purchase (OTP)
- If you have decided to proceed on the agreed price and terms, the seller will issue you an OTP.
- In return, you will pay the Option Fee, which is a 1% downpayment of your purchase price.
Step 5: Hire a Conveyance Lawyer &
Secure your Home Loan
- Choose a law firm that is on the panel of the bank from which you are obtaining your home loan.
- With a copy of the OTP, you can proceed to secure the home loan whereby the bank will issue you the Letter of Offer.
Step 6: Exercise OTP
- Exercise the OTP before the deadline.
- Pay the Exercise Fee, which is a 4% downpayment of your purchase price.
Step 7: Pay the Buyer’s Stamp Duty (BSD)
- Following is the schedule for the Buyer’s Stamp Duty.
- There is also an Additional Buyer’s Stamp Duty (ABSD) for foreigners, PRs and Singaporeans who own existing properties.
Updated May 2024
Step 8: Prepare the Balance of the
______Purchase Price
For illustration:
If you have taken a home loan at the maximum allowable loan-to-value (LTV) ratio of 75%, the payment to the seller will look like this:
75% disbursed by the bank
+ 20% by you in cashier‘s order and/or CPF
Step 9: Final Inspection
Walk through the property to check that everything is in accordance to the contract.
Step 10: Completion Day
Sign the Sale & Purchase Agreement and collect the key at your lawyer‘s office.
Congratulations on your new property!
