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Budgeting for a New Launch Condo
To budget well for a new launch condo, you need to be aware of three key factors:
1. Down-payment & Buyer Stamp Duty
Structure 1
- 5% Cash
- 20% Cash/CPF
- 75% Loan
Loan tenure cannot exceed age 65 or 30 years
Structure 2
- 10% Cash
- 35% Cash/CPF
- 55% Loan
Loan tenure cannot exceed age 75 or 35 years
Buyer Stamp Duty Rates
| Purchase price or market value of the property | BSD rates for residential properties |
|---|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Remaining amount | 6% |
BSD is rounded down to the nearest dollar, subject to a minimum duty of $1.
Source: IRAS Official Website
Did you know?
You can use CPF upfront to pay for buyer stamp duty for a new launch condo, but not for a resale condo.
Get Free Expert Advice2. Know your Loan Eligibility by getting an In-Principle-Approval (IPA)
An IPA is a guarantee from the bank stating how much loan they are willing to offer. Your loan eligibility is determined by the following factors:
Stress Test
Different banks use varying stress tests to determine loan amount.
Source Of Income
Employment status (employed or self-employed) and whether you work in Singapore or overseas will impact the loan amount.
Credit Score
A clean credit score improves your chances of loan approval.
Total-Debt-Servicing-Ratio (TDSR) and/or Mortgage-Servicing-Ratio (MSR)
Depending on the property type, banks use TDSR and/or MSR to calculate loan eligibility, factoring in your income and liabilities.
3. Your Comfortable Monthly Instalment
The Loan Amount
A larger loan quantum leads to higher monthly instalments, while a smaller loan quantum results in lower monthly instalments.
The Loan Tenure
A longer loan tenure leads to a lower monthly instalment but increases the interest paid, while a shorter tenure leads to a higher monthly instalment but decreases the interest paid. Striking a balance between affordability and savings is key.
The Interest Rates
A lower interest rate will result in a lower monthly installment and choosing the right package can save you thousands of dollars a year.
Did you know?
Our mortgage brokerage partner can provide unbiased advice on the best loan structure, assist with the IPA, and send you a comparison on the best interest rates. There is no consultation charge, as they receive a standardized fee from all banks.
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