New & Resale Condo Payment Schedule: Down Payments and Everything Else
The five Cs of Singapore
You remember the all famous five Cs that makes a Singaporean financially successful.
- Cash
- Car
- Credit Card
- Condominium
- Country club membership
Of all the five Cs mentioned above, only a few withstood the test of time.
With cashless payments and mobile wallets becoming a thing, physical cash is now starting to be seen as an inconvenience.
A country club membership is no longer a thing in our generation and almost anyone on the street has a credit card now.
Choose your poison.
Decide between a luxurious sports car…
Or a condo in the prime districts of Singapore to pamper yourself with your hard-earned salary.
If you want to be really practical about it, a private apartment probably makes the most sense.
Especially for single Singaporeans, below the age of 35 years old, who can’t wait to get their own home.
But when it comes to buying a condo, the downpayment is usually the first cost that hits a buyer.
“That feels when condo cost hits you in the face.”
To better prepare you for the initial sticker shock as well as the potential cost of a condo.
We’ll be looking at the repayment schedule for a private condo — both new launch and resale — to help private home buyers make a smarter financial decision.
To break things down better, we’re going to assume that you’re getting a $1 million private condo.
TL;DR: How Much Do You Need to Buy a Newly Launched Private Condo?
For a $1,000,000 newly launched private condo, assuming bank interest rate at 0% (which is impossible), this is how much you need and how your payment schedule will look like
| Progress of work | Approximate timeframe | % purchase price of fees payable | Amount payable | Payment Method |
|---|---|---|---|---|
| Exercising option (Option or booking fee) | – | 5% of purchase price | $50,000 | Only Cash |
| Receives Sale and Purchase (S&P) Agreement | Within 2 weeks | - | - | - |
| Legal fees | S&P Agreement sent to your lawyers | Between $2,500 to $3,000 | $3,000 | Cash/ CPF |
| Signing of S&P Agreement (Exercising the Option to Purchase (OTP)) | Within 3 weeks (From delivery of S&P Agreement) | – | – | – |
| Buyer Stamp Duty (BSD) or Additional Buyers Stamp Duty (ABSD) | Within 14 days (from signing of S&P Agreement) | 1st $180,000: 1% 2nd $180,000: 2% Remainder of purchase price: 3% | $24,600 | Cash/ CPF |
| Downpayment | Within 8 weeks (from exercising option) | The remaining 15% of purchase price | $150,000 | Cash/ CPF |
| Bank will disburse your home loan (Month repayments of home loan starts here) |
||||
| Valuation fee | – | $350 – $500 | $350 | Cash/ CPF |
| Foundation work | About 6 to 9 months (from launch) | 10% of purchase price | $100,000 | Cash/ Bank loan (Bank loan can be paid using cash or CPF) |
| Reinforced concrete framework | 6 to 9 months after foundation work | 10% of purchase price | $100,000 | |
| Brick walls of unit | 3 to 6 months later | 5% of purchase price | $50,000 | |
| Ceiling of unit | 3 to 6 months later | 5% of purchase price | $50,000 | |
| Door and window frames in position, wiring, internal plastering & plumbing of unit | 3 to 6 months later | 5% of purchase price | $50,000 | |
| Car park, roads and drains servicing the project | 3 to 6 months later | 5% of purchase price | $50,000 | |
| Notice of Vacant Possession and a copy of Temporary Occupation Permit (TOP) | Within 14 days after receipt of TOP date | 25% of purchase price | $250,000 | |
| Legal Completion Date | Date of legal completion or certificate of statutory completion | 15% of purchase price | $150,000 | |
| Total: $1,027,950 | ||||
Here are some pointers to take note of:
- If you choose not to sign the S&P Agreement, 75% of your booking fee will be refunded.
When it comes to the last payment, there are two scenarios:
- Scenario 1:
Where legal completion of Sale & Purchase occurs before the issuing of Certificate of Statutory Completion (CSC)
In this case,
2% will need to be paid to the developer on legal completion
13% to Singapore Academy of Law (SAL) as a stakeholder.
(8% to be released within 7 days of notice of CSC, 5% to be released on expiry of 12 months after date Purchaser receives Notice of Vacant Possession) - Scenario 2:
Where CSC is issued before legal completion of Sale & Purchase
In this case,
13% is to be paid as follows within 14 days after Purchaser receives notice of CSC.
(8% to be paid to the developer, 5% to be paid to SAL as a stakeholder, to be released on expiry of 12 months after date Purchaser receives Notice of Vacant Possession)
The last 2% to be paid to the developer upon legal completion
How Much Do You Need to Buy a Resale Private Condo?
If you wish to get a resale instead, assuming a $1,000,000 private resale condo, and again 0% bank interest rate, this is how your payment schedule will look like.
| Fee payable | Approximate timeframe | % purchase price of fees payable | Amount payable | Payment Method |
|---|---|---|---|---|
| Grant of option (Booking fee) | - | 1% of purchase price | $10,000 | Only Cash |
| Exercising option (Option fee) | With 14 days after granting of option | 4% of purchase price | $40,000 | Only Cash |
| Legal fees | S&P Agreement sent to your lawyers | Between $2,500 to $3,000 | $3,000 | Cash/ CPF |
| Buyer Stamp Duty (BSD) or Additional Buyers Stamp Duty (ABSD) | Within 14 days (from signing of S&P Agreement) | 1st $180,000: 1% 2nd $180,000: 2% Remainder of purchase price: 3% | $24,600 | Cash/ CPF |
| Valuation fee | – | $350 – $500 | $350 | Cash/ CPF |
| Completion of sale and purchase (Done at lawyer's office) | 8 to 12 weeks after exercise of option | 95% of purchase price | $950,000 | Cash/ Bank loan (Bank loan can be paid using cash or CPF) |
| Total: $1,027,950 | ||||
Getting Your Own Home
Getting your own home is a big-ticket purchase.
So it’s important to understand the payment schedule in order to better allocate your funds and plan your finances accordingly.
If you’ve got your finances sorted out and are sure about committing to a condo.
Maybe this guide on how to choose the best condo unit will help.
