Buying your first property in Singapore can be overwhelming with numerous regulations, financing options, and market considerations. This comprehensive guide walks you through every step of the process, ensuring you make informed decisions that align with your financial capacity and lifestyle needs.
Eligibility Requirements
HDB Flats
Private Property
Financial Planning Essentials
Calculate Your Affordability
Use the 30% rule: Total monthly housing costs should not exceed 30% of gross monthly income.
Prepare Your Down Payment
HDB Flat ($500,000)
- Down payment: $50,000 (10%)
- Can use CPF Ordinary Account
- Cash required: Minimal
Private Condo ($1.5M)
- Down payment: $300,000 (20%)
- CPF usage: Up to withdrawal limits
- Cash required: $150,000+
Account for Additional Costs
Stamp Duties
- Buyer's Stamp Duty: 1-4% of property value
- ABSD: 0% (citizens), 5% (PRs), 20% (foreigners)
Legal & Professional
- Legal fees: $2,500-5,000
- Valuation fees: $500-1,000
- Survey fees: $500-800
Move-in Costs
- Renovation: $30,000-100,000+
- Furniture & appliances: $20,000+
- Moving expenses: $1,000-3,000
Mortgage & Financing Options
Step-by-Step Buying Process
Pre-Approval & Budget Setting
Get mortgage pre-approval to understand your exact budget. This gives you negotiating power and speeds up the process.
1-2 weeksProperty Search & Viewing
Work with experienced agents to view properties that meet your criteria. Don't rush - take time to compare options.
2-8 weeksMake an Offer
Submit Letter of Intent with earnest money. Negotiate terms including price, completion date, and conditions.
1-2 weeksOption to Purchase
Exercise the Option to Purchase within 14 days. Pay option fee (typically 1% of purchase price).
14 daysFinalize Financing
Submit formal loan application with all required documents. Bank will conduct property valuation.
2-4 weeksCompletion
Sign Sale & Purchase Agreement, pay stamp duties, and collect keys. Congratulations on your new home!
8-12 weeks from OTPFirst-Timer Pro Tip
Always get a professional property inspection before signing the Sale & Purchase Agreement. This can save you thousands in unexpected repair costs and gives you leverage in negotiations.
Common First-Timer Mistakes to Avoid
Overstretching Financially
Don't max out your loan capacity. Leave room for emergencies, lifestyle changes, and unexpected costs.
Ignoring Future Resale Value
Consider factors like location, transport links, and development plans that affect long-term value.
Skipping Professional Inspection
Always engage qualified professionals to inspect the property for defects and maintenance issues.
Rushing the Decision
Take time to research the market, compare options, and understand all terms before committing.