Hi MKZL, thanks for writing to us on AskGuru.
For condos that are under development, you can look to progressively make payment for a few years until the project is completed. You still have to pay a booking fee of 5% in cash and the remaining 15% in cash or CPF in the coming weeks after which the progressive payment scheme will kick in.
For resale condos, you will need to pay 1% upfront to the seller after securing the Option to Purchase. You then have two weeks to exercise the option and pay the remaining 4% in cash. The remaining 20% can be via your CPF. Do note that the Loan-To-Value (LTV) limit is currently 75% for a Singaporean citizen buying their first private property. You may refer to our link here for more details: https://www.propertyguru.com.sg/property-guides/how-much-do-you-need-to-spend-upfront-when-buying-a-condo-10413
There are also other transaction costs such as the following:
1. Banking costs - interest cost and pre-payment charges
2. Related taxes - stamp duties for a contract, mortgage, pro-rated property tax
3. Legal costs - conveyancing fees
4. Other closing costs - valuation fee, caveat fee, agent's fee
Here are examples of bank charges and fees:
1. Pre-payment of capital sum
Buyers must give 30 days prior written notice or payment in 'interest in lieu' in the minimum of $10,000 and in multiples of $1,000.
2. Pre-payment fee
In the event that pre-payment is made within the 'lock-in' period from the date of the first loan disbursement, a pre-payment fee of 1.5% of the ledger balance will be charged.
Borrowers must give 3 month's written notice or payment of 'interest in lieu'
4. Redemption fee
1.5% of the amount redeemed will be charged if made within the 'lock-in' period from the date of the first loan disbursement date.
1. Stamp duty.
Assuming, you are a Singaporean, for a $1.5 million condominium, your stamp duty will be $44,600. Refer to IRAS's calculator here: https://mytax.iras.gov.sg/ESVWeb/default.aspx?target=MSDCalculatorIntro
2. Pro-rated property tax
This is assuming you are buying a resale condominium. When the property is sold, the buyer will share the portion of the property tax that is not 'used' by the seller. Do note that all property taxes are paid in advance in January. For example, if the full year property tax is $600 and the property transaction is completed on the last day of June 2020, you will share with the seller the property tax amount proportionate to the percentage of the year that each has ownership of the property. In this case, you will have to pay $300, being 50% of the property tax already paid by the seller in the beginning of the year.
The standard rate for conveyancing fee charge on a private property transaction is 0.4% of the transacted price or up to $2,500, whichever is lower. Some lending banks absorb legal fees on the condition that the loan is not fully redeemed before maturity.
Other closing costs:
You may also pay for other related charges such as:
1. Valuation fees
In general, a purchaser must fork out the valuation fee for the property appraisal done on request of the mortgagee bank, and/or CPF Board (if CPF savings is used to purchase the property). In general, for private residential and non-residential properties, the valuation fee is between $400 and $500 but it could be higher in some cases when the licensed appraisers are required to perform more tasks related to the appraisal, for example, floor space measurements. Some lending banks absorb the valuation fees on the conditions that there is to be no full resumption before the loan matures.
2. Insurance premium
There are various type of property-related insurances inducing fire insurance and 'mortgage reducing' insurance. Most lending banks require the security to be protected with at least a fire insurance. However, not all lending banks require the security or loan amount to be insured. When the loan amount is insured, it is often called 'mor