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Getting clarity on fees before viewing flats prevents unexpected surprises. When taking a bank loan, your payment schedule follows clear statutory milestones.

### Who Charges What

* **Mortgage Broker:** **S$0 (Free for you).** Independent mortgage brokers are remunerated directly via bank referral commissions; you pay nothing.
* **Buyer’s Property Agent:** Standard market commission is **1% of the final purchase price plus 9% GST**, payable strictly upon legal completion.
* **Conveyancing Law Firm:** **S$1,500 to S$2,500** (banks require a private law firm to act on their mortgage charge). This can typically be paid via CPF Ordinary Account (OA) savings.
* **HDB & IRAS Administrative Charges:** S$120 valuation request fee, S$80 resale application fee (3-room or larger), and Buyer’s Stamp Duty (BSD).

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### Step-by-Step Payment Timeline

1. **Option to Purchase (OTP):** Once price is negotiated, pay a maximum **S$1,000 cash Option Fee** directly to the seller for a 21-day exclusive option period.
2. **HDB Valuation:** Submit a Request for Value on the HDB Flat Portal by the next working day for **S$120**.
3. **Exercising OTP (within 21 days):** Once your bank Letter of Offer (LO) is signed and valuation is known, pay the **Option Exercise Fee in cash** (Option Fee + Exercise Fee cannot exceed S$5,000 total).
4. **Buyer's Stamp Duty (BSD):** Due within 14 days of exercising the OTP. Paid via CPF OA or reimbursed cash.
5. **Resale Application:** Both parties submit on the HDB portal within 7 days of each other, paying **S$80**.
6. **Completion Appointment (~8–10 weeks post-acceptance):**
* **Minimum 5% Cash Downpayment** (the S$5,000 OTP forms part of this 5%).
* **Balance 20% Downpayment** (payable via CPF OA savings, housing grants, or cash).
* **Cash-Over-Valuation (COV)** if the purchase price exceeds HDB's official valuation, paid 100% in cash.
* Conveyancing legal fees and agent commission.

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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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Hi there!

Since you haven't found a flat yet, this is actually a good time to sort out your financing and understand the costs involved.

One thing I would strongly recommend is **not to start negotiating seriously for a flat until you know how much the bank is prepared to lend you and, more importantly, how much cash you need to set aside.**

Your mortgage broker should be able to help you compare bank loan packages and work towards obtaining an In-Principle Approval (IPA). Mortgage brokers are generally paid referral fees by the banks, so you typically don't pay them directly. Nevertheless, it's perfectly reasonable to confirm this upfront.

As for your property agent, the commission should have been discussed and agreed upon before you engaged her.

There isn't a compulsory fixed commission rate for buyer agents in Singapore. The amount is negotiable, and you should know exactly what you're agreeing to pay, including any applicable GST.

Beyond these professional fees, you'll also need to budget for your initial option payment, downpayment, Buyer's Stamp Duty, legal fees and HDB administrative fees.

**But there's one expense I would particularly caution you about when buying a resale HDB with a bank loan: Cash Over Valuation (COV).**

For example, if you agree to purchase a flat at $650,000 but HDB's valuation comes back at $630,000, the $20,000 difference must be paid in cash.

This is on top of the cash you may already need for your downpayment and other expenses.

That's why it's important for your agent to help you assess recent comparable transactions before recommending an offer.

Another point to remember is that an IPA isn't the same as a final loan approval. The bank will still need to assess the actual property and issue its formal loan offer.

My suggestion is to ask your agent and mortgage broker to work out a complete financial breakdown based on your intended purchase budget.

For example, if you're looking at flats around $600,000 to $700,000, ask them to show you how much CPF, cash and bank financing would be required under different scenarios, including a possible COV.

**You shouldn't have to discover your financial obligations only after you've committed to purchasing a flat.**

Your agent should be guiding you through the entire process, explaining the payments and helping you plan ahead.

And please don't feel awkward asking about fees. You're making a major financial commitment, and you have every right to understand exactly what you're paying for.

One question: When you mentioned that you cannot obtain an HDB loan, is it because your household income exceeds the eligibility ceiling, or because of another reason?

That distinction could be relevant when assessing your financing options.

All the best with your Hougang property search!

Geryl Lim
CEA Reg No: R014783H
 9278 7772  Read More

1. Since you haven't found a flat yet, settle your financing first. Ask the mortgage broker for an In-Principle Approval and confirm how much cash and CPF you can use.

2. Your main costs include the OTP payment, downpayment, Buyer's Stamp Duty, legal fees, HDB fees and your agent's agreed commission. Ask for a written breakdown so nothing catches you by surprise.

3. Pay special attention to Cash Over Valuation (COV). If the agreed price exceeds HDB's valuation, the difference must be paid in cash, so don't stretch your budget too far.

4. Confirm your agent's commission and whether GST applies before proceeding. Commission rates are negotiable, and you should understand the payment terms upfront.

5. Don't feel paiseh about asking questions. A good agent and mortgage broker should explain the costs clearly before you commit to anything.

“Beware of little expenses; a small leak will sink a great ship.” — Benjamin Franklin

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Hi, ask for a written fee schedule before proceeding. Separate the property agent’s commission, any mortgage broker fee, the bank’s charges, legal fees, valuation and stamp duties. Do not assume a referral means either an extra fee or a free service.

Ask the broker who pays them, whether you owe any fee and whether they compare all relevant lenders or a selected panel. Ask your agent to confirm the agreed scope, commission and payment trigger.

Get an HFE and bank assessment before committing to a flat, then map each payment to the purchase timeline. That gives you one budget and avoids confusing the downpayment with professional fees or taxes.

Silas Tan | Huttons | TRIBE
Free property guides and calculators: https://tribesg.com Read More