SELLING CONSIDERATIONS
1 - Seller's Stamp Duty(Private Property)
1.1 Check BTO
www.hdb.gov.sg >>> Overview >>> View New Flat Details >>> Under Application Status >>> Probable Completion Date
2 - Check Housing Loan
- HDB Statement – February or
- www.hdb.gov.sg >>> My Flat >>> Purchased Flat >>> Financial Info >>> Outstanding Balance or
- Bank Loan Statement
3 - CPF Refund
Website
www.cpf.gov.sg >>> My Statement >>> Section C >>> Property >>> My Public Housing Withdrawal Details >>> Amount to be refunded if you sell your property today
+ Important Notes :- 3 The estimated amount that you can reuse, after the refund of your principal amount withdrawn and accrued interest.
App
My Housing >>> Address >>> Amount to be refunded if you sell your property today + Important Notes: 3rd Paragraph:- The estimated amount that you can reuse, after the refund of your principal amount withdrawn and accrued interest.
4 - Resale Levy (HDB)
You need to pay a resale levy in either of these cases:
- You dispose of your subsidised flat and then buy a second subsidised flat from HDB
- You dispose of your subsidised flat and then buy an EC from a developer where the land sale was launched on or after 9 December 2013
You need not pay a resale levy if you are buying any of these:
- Design, Build and Sell Scheme (DBSS) flat from a developer
- EC from a developer, where the land sale was launched before 9 December 2013
- HDB resale flat
- Private residential property
The resale levy payable is determined at the point you book your second subsidised flat. It applies regardless of ownership type (joint-tenancy or tenancy-in-common) or shared interest in the flat. Payment can only be made by way of your flat sale proceeds and/ or cash. HDB mortgage financing will not be extended to the payment of a resale levy.
A) If you are a Singles Grant recipient, you only need to pay half the resale levy amount when you subsequently form a family and buy a second subsidised flat.
B) Resale levy amount: first subsidized flat sold on or after 3 March 2006
C) Resale levy amount: first subsidized flat sold before 3 March 2006
D) Waiver of Interest for Elderly
If you and your spouse are aged 55 and above, have sold your first subsidised flat before 3 March 2006 and right-size to a new 3-room or smaller flat from the November 2015 sales launch onwards, you will pay only the percentage graded resale levy, with the interest waived. The resale levy payable is also subject to a minimum amount of $15,000 for 2-room, $30,000 for 3-room, $40,000 for 4-room, $45,000 for 5-room, and $50,000 for Executive flat sold. These are the same resale levy amounts payable by second-timers who sold their first subsidised flat on or after 3 March 2006.
5 - Upgrading Costs (HDB)
You need to pay for the upgrading cost if you are the flat owner on the date the bill was issued. The outstanding amount can be deducted from the resale price, if sufficient, or paid in cash or with CPF savings.
You can view the status of upgrading and the billing status for the upgrading costs of your flat, when you register your Intent to Sell using the HDB Resale Portal. Alternatively, you can check the status of the upgrading programme via the Enquiry on Upgrading/ Estate Renewal Programmes e-Service.
More information on payment of upgrading cost and billing dates are also available:
Change of Flat Ownership and Liability to Pay
Lift Upgrading Programme (LUP)
Home Improvement Programme (HIP)
6 - Upgrading Levy (HDB)
Who needs to pay the Upgrading Levy?
Singapore Citizen (SC) households who have benefitted from the previous Main Upgrading Programme (MUP) (discontinued from August 2007) 2 times or more; or
Singapore Permanent Resident (SPR) households whose flats were upgraded under MUP (Batch 6 and before)
Who need not pay the Upgrading Levy?
From 11 April 2005, the following flat owners need not pay any upgrading levy:
- SC owners who sell their second or subsequent MUP flat (Batch 7 onwards)
- SPR owners who sell their MUP flat (Batch 7 onwards)
- SPRs who do not wish to pay the full upgrading cost cannot sell their flats back to HDB if they have already met the Minimum Occupation Period for the flat, i.e. the flat is to be sold in the open market.
There will be no refund for the following households:
- Those who already billed as second timers
- Those who paid the upgrading levy (in full or by installment) before 11 April 2005
7 - Real Estate Fees 2% Exclusive
8 - Miscellaneous Fees(HDB)
- Resale application administrative fees Online
Buyers and Sellers
1-2 rm $40
>3 rm $80
- Conveyancing Fees $36.45 + x ~$166.95 (360K) ~$261.45 (560K) NETS
3. Property tax
As the seller, you need to pay the flat’s property tax up to the end of the year. Please submit the official tax payment receipt to us at your flat sale completion appointment. For the amount due, please check the Inland Revenue Authority of Singapore’s myTax Portal.
4. Service & Conservancy Charges
Your Service & Conservancy Charges are to be paid up to the date of completion (i.e. completion appointment date). Please submit the receipt for this payment to us at your flat sale completion appointment. For the amount due, please check with your Town Council.
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BUYING CONSIDERATIONS
Cash(HDB)
You must use cash for the following payments:
- Deposit to seller (a maximum of $5,000, paid in 2 stages: the option fee, and the deposit)
- Part of the initial payment (if you take a bank loan, or have insufficient CPF savings)
- Amount not covered by CPF savings and eligible housing loan amount
- Cash proceeds from disposing the last flat if you are taking a second HDB loan*
*If you are taking a second HDB loan to buy the resale flat, you will need to set aside part of the cash proceeds from the disposal of the existing or previous flat. That amount will be used to right-size the loan amount for your second HDB loan.
You will also need to set aside cash savings for other expenses such as furnishings, renovation, and some other costs and fees payable .
The cash payment for balance purchase price only needs to be paid when the resale price is higher than the market valuation. Deposit paid can be used to offset CoV.
CPF(HDB)
The savings in your CPF Ordinary Account (OA) can be used for:
- Initial payment in whole or in part (depending on whether an HDB or bank housing loan is used)
- Partial or full payment for the flat purchase
- Monthly mortgage instalments
1.0 Stamp Duties
1.1 - Buyer's Stamp Duty
BSD
1% 1800
2% 3600
3% 19200 | < 1m : [ (P x 3%) - $5,400 ]
------------ 1st Million | > 1m : [ (P x 4%) - $15,400 ]
24,600
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BAL 4%
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Stamp Duty ~$5400 $360K CPF
1.2 - Additional Buyer's Stamp Duty
Singapore Permanent Resident households buying their first HDB resale flat are required to pay Additional Buyer Stamp Duty (ABSD) on top of the existing Buyer’s Stamp Duty (BSD). It can be paid by CPF savings, cashier's order and/ or NETS, and is due within 10 days from the First Appointment date. The amount due is 5% of the purchase price or market valuation, whichever is higher.
2.0 - HDB Loan Eligibilty
Couple – Individually must have not previously taken 2 or more HDB housing loans
Age - For joint borrowers, use their income-weighted average age as their present age
Loan Tenure is the shortest of - 25 years for HDB flats
- 65 years minus the average age of the buyers
- remaining lease at flat application minus 20 years
- 35 years for non-HDB properties
Total debt servicing ratio (TDSR) - No more than 55% of a borrower’s gross monthly income should go towards repaying all their debt obligations(Credit card, student loan(s), car loan(s), credit term installment plan loans, any other personal loan(s)), including the loan being applied for.
Mortgage servicing ratio (MSR) - No more than 30% of a borrower’s gross monthly income should go towards repaying all their property loans, including the loan being applied for. Only applies to the purchase of HDB flats and ECs.
$12,000 for families
$18,000 for extended families
$6,000 for singles buying a 5-room or smaller resale flat or a 2-room new flat in a non-mature estate, under the Single Singapore Citizen (SSC) Scheme
2.1 - Loan To Value
The current LTV limit for first-time loan applicants is 80 percent, with the limit decreasing with the number of home loans taken up by the borrower. It’s important to note that even if you’re merely guaranteeing a home loan, you’d be considered a joint-borrower which in turn affects your LTV limit should you wish to take up your own loan later.
From 30 September 2022
2.2 - Total Debt Servicing Ratio
If a person has a variable aspect to his earnings, for example allowances, bonuses or rental income, these earnings need to take a haircut of 30 percent.The term ‘haircut’ indicates the lender’s perceived risk of loss if the asset falls in value.
Housing and Development Board (HDB) flats and Executive Condominiums (ECs) are further subject to the stricter Mortgage Servicing Ratio (MSR), which means their buyers have to satisfy both the TDSR and MSR when applying for a loan.
2.3 - Mortgage Servicing Ratio
A borrower may not exceed a MSR of 30% for his housing loans and is applicable only in cases where the borrower is purchasing HDB flats and ECs.
Like the TDSR, any variable income earned is given a 30 percent haircut when calculating the total monthly income.
2.4 - Loan Tenure
- limiting the maximum tenure of all residential property loans to 35 years; and
- lowering the LTV ratio for new residential property loans to individuals if –
- the tenure exceeds 30 years; or
- the loan period extended beyond the retirement age of 65 years.
3.0 - CPF Grants
SINGLES
#1 - Singles Grant
$25,000 (2- to 4-room resale flat)
$20,000 (5 room resale flat)
#2 - Enhanced CPF Housing Grant (EHG)
#3 - Proximity Housing Grant
Extended Families Living Together - $15,000
Families Living Near Parents Or Child - $10,000
FAMILIES
#1 - Family Grant - First-time homeowners buying new or resale flats, gross monthly household income must not exceed:
•$12,000
•$18,000 if applying with extended family
#2 - Enhanced CPF Housing Grant (EHG)
#3 - Proximity Housing Grant
Proximity Housing Grant For Resale Flat Buyers (Within 4km of HDB or private property)
Extended Families Living Together - $30,000
Families Living Near Parents Or Child - $20,000
First-Timer and Second-Timer Couple Applicants
Top Up Grant
Non-Citizen Spouse Scheme
Joint Singles Scheme
Maximum amount of $25,000 x 2
3.2 - CPF Withdrawal Limits
- Banks are unwilling to extend loans to finance the purchase of flats that have 35 years left on the lease
- CPF money cannot be used for down payment or to service the monthly mortgage for flats which have less than 30 years of lease remaining; and
- From the 79th year onwards, the property has to be paid for in cash.
For resale applications received from 28 Aug 2018, flat buyers taking an HDB housing loan will have the option of retaining up to $20,000 CPF savings in each buyer's Ordinary Account (OA). The rest of the available CPF OA balance must be used to pay for the flat purchase.
Maximum CPF usage based on Valuation Limit
*** No CPF usage and HDB loan for property with <20 years of lease
*** Properties to last until age 95 years for withdrawal of CPF savings above Basic Retirement Sum from age 55 ($88,000 2019)
7 - Real Estate Fees 1% Exclusive
8 - Miscellaneous Fees(HDB)
- Resale application administrative fees Online
Buyers and Sellers
1-2 rm $40
>3 rm $80
- Conveyancing Fees $36.45 + x ~$166.95 (360K) ~$261.45 (560K)
- Request for Value $120 Online
If you intend to buy a resale flat using your CPF money and/or a housing loan, you must submit a request to HDB to confirm the flat's value.
When buying an HDB resale flat, the various legal fees can be paid using CPF savings, cashier's order, or NETS. However, Caveat and Title Search fees are only payable by cashier's order and/ or NETS.
The Conveyancing, Caveat, and Title Search fees are paid after acknowledging the resale documents in the HDB Resale Portal. If you do not have enough CPF to pay the Stamp Duty in full, you will have to pay the balance on the Resale Completion date by cashier’s order and/ or NETS.
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Progressive Payment Scheme
