BANK LOAN FOR CONDO IN SINGAPORE
Buying property in land-scarce Singapore is a big-ticket purchase, more so for private properties like condominiums. The prices of condominiums can reach upwards of $1 million, which is a hefty amount to fork out. As a result, many naturally seek out condo housing loans to finance their property purchase.
It is worth noting that the terms of bank loans would vary in their interest rates and special terms. As such, it is crucial that you do your due diligence to navigate the real estate jargon, effectively cutting through the white noise, to land yourself a mortgage package that offers you the best value for your money.
UNDERSTANDING CONDOMINIUM DOWN PAYMENTS
As with most HDBs, purchasing a condominium unit will also require you to make an initial down payment. The amount will vary depending on the following factors:
Loan-to-Value (LTV) Limit: the maximum amount that you qualify for when applying for a housing bank loan
- The outstanding condo down payment, of which you can pay a percentage by using your CPF funds
- The minimum cash down payment, which is typically 5% of your purchase price
- Stamp Duty (BSD and/or ABSD). This will require you to pay in cash first, after which you can request a reimbursement from CPF
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FREQUENTLY ASKED QUESTIONS ABOUT BANK LOAN FOR CONDO IN SINGAPORE
Buyer’s Stamp Duty (BSD) is an extra cost to note when making your condominium down payment. If you are a Permanent Resident (PRs) or foreigner, however, you will need to also factor in Additional Buyer’s Stamp. For your first property purchase, PRs can expect to pay a 5% tax, whereas foreigners will need to pay a tax of 20%.
You can use your CPF funds from your Ordinary Account, but note that it will be on a reimbursement basis.
No, HDB loans are only eligible for public housing. Condominiums, which are considered private property, will not be able to leverage on such loans.
For condominiums and other types of private residences, the maximum home loan tenure is up to 35 years.