How to buy a condo in Singapore: step by step

Buying a condo in Singapore follows a well-defined legal process. The steps differ slightly between a resale unit and a new launch bought from a developer.

Step 1: Work out your budget

Three limits decide what you can buy:

1. Loan-to-value. A bank will lend up to 75% of the price or valuation, whichever is lower, if you have no other housing loan.
2. Total Debt Servicing Ratio. All your monthly debt repayments, including the new mortgage, cannot exceed 55% of your gross monthly income.
3. Cash and CPF. You need 25% as a downpayment, of which at least 5% must be cash, plus stamp duty.

Our affordability guide explains each limit, and the calculator does the sums.

Step 2: Get an In-Principle Approval

Ask one or two banks for an In-Principle Approval (IPA). The bank checks your income and debts and confirms the maximum loan it will grant. An IPA is usually valid for about 30 days and costs nothing.

Skipping this is the most common and most expensive mistake. If you pay an option fee and the loan falls short, you lose the fee.

Step 3: Search and view

Decide on district, tenure, size and whether you want a new launch or a resale unit. For a resale condo, check recent transacted prices on URA’s website and the latest rents on our rental prices page.

If you use a property agent, check that they are registered on the Council for Estate Agencies (CEA) public register.

Step 4a: Buying a resale condo

1. Option to Purchase (OTP). You agree a price and pay the seller an option fee, normally 1%. The seller cannot sell to anyone else during the option period, normally 14 days.
2. Exercise the option. Within the option period, you sign the OTP at your lawyer’s office and pay a further 4%, bringing the deposit to 5%. The sale is now binding.
3. Stamp duty. Buyer’s Stamp Duty and any ABSD are due within 14 days of exercising.
4. Completion. Usually 8 to 10 weeks later. Your lawyer checks title, collects the remaining 20% downpayment from cash or CPF, and draws down the bank loan. You get the keys.

Step 4b: Buying a new launch

1. Booking. You pay a 5% booking fee in cash at the sales gallery and receive an Option to Purchase.
2. Sale and Purchase Agreement. The developer sends the agreement within 14 days. You have 3 weeks to sign it. If you do not, the option lapses and you get back 75% of the booking fee.
3. Stamp duty is due within 14 days of signing.
4. Further 15% is due within 8 weeks of the option date.
5. Progressive payments follow as construction reaches each stage.

Step 5: Completion and handover

On completion of a resale purchase, inspect the unit, take meter readings and collect all keys and access cards. For a new launch, you have a 12-month defects liability period after you receive vacant possession, during which the developer must fix defects you report.

What it costs

On a $2,000,000 resale condo bought by a Singapore Citizen with no other property:

Ongoing costs after purchase include the monthly maintenance fee paid to the condo’s management, property tax and mortgage interest.

Checks before you commit

• Tenure and remaining lease. It affects loans, CPF use and resale value. See Freehold vs 99-year leasehold.
• Recent transactions in the same development, not just asking prices.
• Maintenance fees and sinking fund, and whether any special levy is planned.
• The URA Master Plan for what could be built around the site.
• Your holding period. Selling within four years triggers Seller’s Stamp Duty.