Buying property in Singapore is not a tough process as long as you can get a good property consultant who can assist and guide you from selecting the property, financing, booking until completion. This article will help you to get started on the procedure of buying property in Singapore like the down payment, loan to value, property tax in Singapore, and progressive payment
Buying property in Singapore - Down payment
The initial down payment of buying property in Singapore depends on how many outstanding property loan does the buyer have and the loan tenure they take.
For loan tenure maximum 30 years and capped at 65 years old
If the property buyer currently does not have any outstanding loan, the down payment will be only 20% of the property price. If the property buyer has 1 outstanding loan, the down payment will be 50% of the property price. If the property buyer has 2 or more outstanding loan, the down payment will be 60% of property price.
For loan tenure more than 30 years or above 65 years old
If the property buyer currently does not have any outstanding loan, the down payment will be only 40% of the property price. If the property buyer has 1 outstanding loan, the down payment will be 70% of the property price. If the property buyer has 2 or more outstanding loan, the down payment will be 80% of property price.
Down payment for Singaporean/SPR buying property in Singapore
| Max 30 years and capped 65 years old | More than 30 years or above 65 years old | Non individual borrowers |
No outstanding loan | Cash: 5% Cash/CPF: 15% Total: 20% | Cash: 10% Cash/CPF: 30% Total: 40% | Cash: 80% |
Have 1 outstanding loan | Cash: 25% Cash/CPF: 25% Total: 50% | Cash: 25% Cash/CPF: 45% Total: 70% | Cash: 80% |
Have 2 or more outstanding loan | Cash: 25% Cash/CPF: 35% Total: 60% | Cash: 25% Cash/CPF: 55% Total: 80% | Cash: 80% |
Down payment for foreigner buying property in Singapore
| Max 30 years and capped 65 years old | More than 30 years or above 65 years old | Non individual borrowers |
No outstanding loan | Cash: 20% | Cash: 40% | Cash: 80% |
Have 1 outstanding loan | Cash: 50% | Cash: 70% | Cash: 80% |
Have 2 or more outstanding loan | Cash: 60% | Cash: 80% | Cash: 80% |
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Stamp duty tax in buying property in Singapore
The normal stamp duty tax for buying property in Singapore above SGD 360,00 is 3% - SGD5,400. In addition, on 12 January 2013 Singapore government has implemented additional buyer stamp duty.
| 1st property | 2nd property | 3rd property and above | |
| Singaporean | Normal: 3% - 5400 4% - 15,400 (For property above SGD 1 Million) | Additional: 17%
| Additional: 25%
|
| Singapore PR | Normal: 3% - 5400 4% - 15,400 (For property above SGD 1 Million) Additional: 5%
| Additional: 25% | Additional: 30% |
| Foreigner | Normal 3% - 5400 4% - 15,400 (For property above SGD 1 Million) Additional: 30% | Same as 1st property | Same as 1st property |
Seller stamp duty tax
Beside the buyer stamp duty, there is seller stamp duty if the property owner decides to sell the property within 4 years after they buy.
- 1st year: 16%
- 2nd year: 12%
- 3rd year: 8%
- 4th year: 4%
- more than 4th year: 0%
More detail about Singapore property tax, you can refer to our property tax in Singapore article
Financing your Singapore property purchase
Loan is one of the most critical element for buying property in Singapore. You must be aware on how much loan to value ratio you should be getting before committing into your purchase. You can refer to the table below for guidance.
| Max 30 years and capped 65 years old | More than 30 years or above 65 years old | Non individual borrowers | |
| No outstanding loan | LTV: 80% | LTV: 60% | LTV: 20% |
| Have 1 outstanding loan | LTV: 50% | LTV: 30% | LTV: 20% |
| Have 2 or more outstanding loan | LTV: 40% | LTV: 20% | LTV: 20% |
TDSR (Total Debt Servicing Ratio)
TDSR framework is a calculation scheme to ensure the borrower is not over leveraging on their property investment and it is also to ensure the stability of Singapore property market especially during financial turmoil.
Progressive payment for buying new launch condo in Singapore
| Stage | Payment under a standard payment scheme |
| Booking | 5% or 10% |
| Upon signing of the Sale & Purchase Agreement or within 8 weeks from the option date | 20% less booking fee |
| Completion of foundation work | 10% |
| Completion of reinforced concrete framework of unit | 10% |
| Completion of partition walls of unit | 5% |
| Completion of roofing/ceiling of unit | 5% |
| Completion of door sub-frames/door frames, window frames, electrical wiring, internal plastering and plumbing of unit | 5% |
| Completion of car park, roads and drains serving the housing project | 5% |
| Temporary Occupation Permit or Certificate of Statutory Completion | 25% |
| On completion date | 15% |
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Steps in buying property in Singapore
- If you need loan, get your loan assessment done first. So that you know your finance better. This is to protect yourself to avoid any unnecessary issue. Usually your property agent should be able to help you linked up with the mortgage specialist.
- Once you know about your financial plan, discuss your property type, location, and any other specific requirement you have with your property agent
- After shortlisted your units, arrange to view the property
- If everything is fine, proceed with the booking of the unit