**Becoming a first-time homeowner requires getting your regulatory eligibility and financing locked down before viewing properties, followed by budgeting for unrecoverable upfront costs.**
Here is the essential checklist:
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### 1. Regulatory Approvals First (Before Viewing)
* **HDB Flat Eligibility (HFE) Letter:** If buying an HDB (BTO or resale), apply for your HFE letter via the HDB Flat Portal first. You cannot book a flat or sign an Option to Purchase (OTP) without a valid HFE.
* **Bank In-Principle Approval (IPA):** If buying private property or taking a bank loan for HDB, secure an IPA to determine your exact borrowing limit under the **Mortgage Servicing Ratio (MSR 30% for HDB)** and **Total Debt Servicing Ratio (TDSR 55%)**.
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### 2. Downpayment & Upfront Cash Outlays
* **Minimum Downpayment:**
* **HDB Loan:** 20% downpayment (can be 100% CPF OA).
* **Bank Loan:** 25% downpayment (at least **5% must be hard cash**, remaining 20% from cash/CPF OA).
* **Buyer’s Stamp Duty (BSD):** Progressive tax (up to 4%–6%) payable within 14 days of exercising the OTP. While CPF OA can be used, you often need liquid cash upfront while awaiting CPF reimbursement.
* **Legal Fees:** S$2,000–S$3,500 for private bank conveyancing, or HDB scale fees.
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### 3. The "Day-One" Renovation & Cash Buffer
* **Cash for Renovations & Furnishing:** Bank loans and CPF **cannot** cover loose furniture, appliances, or full interior works. A typical 4-room renovation ranges from S$35,000 to S$65,000 in pure liquid cash.
* **Emergency Buffer:** Never wipe out your CPF OA or liquid savings entirely. Retain at least **S$20,000 in CPF OA** and **6 months of mortgage payments in liquid cash** as an emergency buffer against job disruption.
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### 4. Ongoing Recurring Commitments
Budget for monthly operational outlays beyond the mortgage:
* **Service & Conservancy Charges (S&CC) / MCST Dues:** S$60–S$100/month for HDB; S$350–S$600+/month for condos.
* **Property Tax & Home/Mortgage Insurance:** Home Protection Scheme (HPS) for HDB flats using CPF, plus comprehensive fire and home contents coverage.
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Gan Eng Joo Onassis 颜荣裕, REALTOR®
MSc BIT (Middlesex, UK); BBA (UniSA)
CEA Reg No: R021244C | Mobile:
(+65) 88899918
Email: onassis@sgagent.com
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