Eligibilty (Private Property)
Eligibilty (HDB)
Costs Involved
Required Documents
Useful CPF / Finance Links
Appointment of Lawyers
- Applicant(s) should have a minimum income of S$24,000 per annum or a combined income of S$36,000 per annum (Bonuses, commission, overtime and other income sources can be taken into consideration at the banks’ or financial institutions’ discretion).
- Individuals aged up to 65 years old.
- Most lenders have a minimum age requirement of 21.
- Applicant must be Singapore Citizen or Permanent Resident.
- Applicant(s) should have a minimum combined income of S$24,000 per annum (Bonuses, commission, overtime and other income sources can be taken into consideration at the banks’ or financial institutions’ discretion).
- Individuals aged up to 65 years old.
- Most lenders have a minimum age requirement of 21.
- All mortgagors must be borrowers and vice-versa.
- Maximum of 4 borrowers.
- Stamp Duties
For the 1st purchase: stamp duty is calculated based on the purchase price.
— 1st 180K – 1%
— next 180K – 2%
— above 360K to 1m – 3%
— above 1m – 4%
Please note that there are additional stamp duty for Singapore Permanent Residents and foreigners, as well as for ownership of 2 or more residential properties. Use the Property Stamp Fees Calculator to compute your stamp fees.
- Legal Fees
Legal fees usually cost between S$1700 to S$5000 depending on factors such as property type and choice of lawyer. CPF can be used to pay the legal fees, which is billed upon completion of your mortgage and/or purchase.
- Cash Outlay Due To Difference Between Purchase Price And Valuation Price
If the bank’s or financer’s valuation is lower than your purchase price, you will have to pay the difference in cash before any loan can be disbursed.
- Valuation Fees
All lenders require a valuation to be carried out on the mortgaged asset prior to loan disbursement. Cost is typically in the hundreds, depending on the property type and value.
- Fire Insurance
All lenders require the mortgaged property to be insured against fire. The premium is paid annually. Cost typically range from around S$50 to the low hundreds, depending on the property type, value and borrowed amount.
- Home Protection Scheme (HPS)
CPF Board requires all members who are using CPF to pay their monthly instalments for their HDB loan to be insured under HPS. However, this is subject to members' eligibility for coverage based on their health. HPS insures members up to 65 years of age.
Mortgage lenders generally require the following documents to be furnished. Additional supporting documents may be required in certain cases.
- Latest computerised payslip
- Latest income tax assessment or CPF contribution history (minimum past 2 years for self-employed)
- N.R.I.C (front and back) or Passport (foreigners)
- Latest loan statements (e.g. credit card, home loan, student loan, renovation loan etc)
- Home loan application form (duly completed and signed)
Additional Documents
- Option to Purchase or Sales & Purchase Agreement (applicable to new purchase)
- Valuation report (applicable for HDB resale)
- CPF Account Balance (if using CPF Funds)
- Letter of appointment (customers without payslip or on overseas posting)
- Past 6 months personal account bank statements (not mandatory)
Term or Bridging Loan
- Statement of CPF withdrawn under Residential Properties Scheme (RPS) (if applying for a term loan or bridging loan)
- Statement of CPF withdrawn under Public Housing Scheme (PHS) (if applying for a bridging loan)
- Sale & Purchase Agreement or Option to Purchase of existing property (if applying for a bridging loan)
- Buying a House
- CPF Public Housing Scheme
- CPF Private Properties Scheme
- Living Healthy, Staying Wealthy
- Investment Moats – Stock Market Investing
- Invest Openly
- InterestGuru.sg - All about Financial Planning
Lawyers performing the following functions are required when you are purchasing a property:
- Purchase and financing (if any) of property (acting on your behalf)
- Housing loan application (acting on behalf of the bank or financial institution if you are taking a loan)
- Withdrawal of funds from the CPF Board (if you are using CPF funds)
You will need to pay the legal fees charged by the lender’s lawyer, as well as the CPF Board lawyer. There is no need to appoint three different lawyers. Generally, home purchasers appoint lawyers who can act for the CPF Board as well as the particular bank or financial institution from which they are seeking financing.