Buying your first private condo in Singapore involves more moving parts than buying an HDB flat — more stamp duties, a different loan structure, and a tighter timeline once you sign the Option to Purchase. Here is the process laid out step by step.
Step 1: Work out your budget before you view a single unit
Before shopping for a condo, get a sense of how much you can actually borrow. Total Debt Servicing Ratio (TDSR) rules cap your total monthly debt repayments — including the new mortgage, car loans, and other credit obligations — at 55 per cent of your gross monthly income. Banks also stress-test your affordability using a floor interest rate of 4 per cent, even if your actual package rate is lower, so your approved loan quantum may be smaller than you expect.
For a first residential property loan, the loan-to-value (LTV) limit is 75 per cent of the purchase price or valuation, whichever is lower. That means you need at least 25 per cent upfront — a minimum of 5 per cent in cash, with the rest payable via cash or CPF Ordinary Account savings.
Step 2: Get an Approval-in-Principle (AIP)
An AIP from a bank gives you a firm indication of how much you can borrow based on your income and commitments. It is not mandatory before you make an offer, but it makes price negotiations far more credible and protects you from over-committing before you know your true budget.
Step 3: Exercise the Option to Purchase (OTP)
Once you find a unit, you pay an option fee (typically around 1 per cent of the purchase price for resale units) to secure an Option to Purchase, which gives you an exclusive window — usually 14 days for resale, longer for new launches — to decide whether to proceed. Exercising the option means paying a further sum and formally committing to the purchase. From this point, the clock starts on your stamp duty deadlines.
Step 4: Budget for stamp duties
Buyer's Stamp Duty (BSD) applies to every buyer regardless of nationality or how many properties they already own. It is tiered: 1 per cent on the first $180,000 of the price or valuation, 2 per cent on the next $180,000, 3 per cent on the next $640,000, 4 per cent on the next $500,000, 5 per cent on the next $1.5 million, and 6 per cent on anything above $3 million.
If this is not your first residential property, Additional Buyer's Stamp Duty (ABSD) also applies — currently 20 per cent for a Singapore Citizen's second property and 30 per cent for a third, 5 per cent for a Permanent Resident's first property, and 60 per cent for foreign buyers. BSD is payable within 14 days of exercising the option, so factor this into your cash flow planning early.
Step 5: Secure your home loan
With the option exercised, you formally apply for your mortgage. Compare packages across banks — not just on the year-one rate, but on the full rate schedule, lock-in period, and any cash rebates or subsidies on offer. Most private property loans come with a two to three year lock-in period.
Step 6: Engage a conveyancing lawyer
A lawyer handles the transfer of title, liaises with the bank on the loan disbursement, and ensures the completion process is legally sound. Many bank packages include a legal fee subsidy that covers some or all of this cost.
Step 7: Completion and key collection
On completion day, the balance purchase price is paid, the loan is disbursed, and you collect your keys. For a resale unit this whole process, from option to completion, typically spans eight to twelve weeks.
Ready to see what you could borrow? Try our mortgage calculator, or speak to an advisor for a free walk-through of your options.