Buying a condo in Singapore is straightforward once you understand the sequence — but expensive if you skip a step. This guide walks through the entire process the way I take clients through it, whether it's a first private home or an upgrade from HDB.
Step 1 — Work out your real budget
Start with what you can borrow, not what you'd like to spend. A bank loan for a first residential property is capped at 75% Loan-to-Value (LTV), so you need at least 25% down — of which 5% must be cash and the remaining 20% can be cash or CPF. On top of that you pay Buyer's Stamp Duty, possibly ABSD, legal fees, and renovation. Add a cash buffer. The headline price is only part of the cost.
Step 2 — Check TDSR and get an AIP
Your borrowing is governed by the Total Debt Servicing Ratio (TDSR), which limits all your monthly debt repayments to 55% of gross monthly income. Existing car and personal loans reduce what you can borrow for property. Get an Approval-in-Principle from a bank before viewing so you know your true ceiling.
Step 3 — Decide new launch or resale
A new launch is bought from the developer, usually under construction, paid progressively as it is built — attractive for cash flow and for buyers who want a brand-new unit and the latest layouts. A resale condo is completed, so you see the actual unit, the real view, and can move in or rent out immediately. New launches suit those with time and a longer horizon; resale suits those who want certainty and immediate use. Both can be good buys — the right answer depends on your timeline and goals.
Step 4 — Understand the stamp duty stack
Buyer's Stamp Duty (BSD) is tiered and reaches into the 5–6% range on the upper portions of higher-value homes. ABSDis 0% for a citizen's first property but 20% on a second — so if you're upgrading, your sale sequence matters enormously. Confirm both figures before you commit.
Step 5 — View with a strategy, not emotion
Shortlist by the fundamentals that drive long-term value: entry price versus the project's ceiling, floor and stack (light, view, noise, afternoon sun), facing, tenure, MRT distance, and school proximity. A low-floor west-facing unit and a high-floor north-south unit in the same project can differ in both livability and resale demand. Don't buy the showflat dream — buy the specific unit.
Step 6 — The Option to Purchase (OTP)
For a resale, you secure the unit by paying the seller a 1% option fee in exchange for the OTP. You then have (typically) 14 days to exercise it by paying a further 4% and signing. For a new launch, you pay a booking fee, receive the Sale and Purchase Agreement, and have a window to exercise. Once you exercise, stamp duty falls due within 14 days. This is the point of no easy return — be sure of financing first.
Step 7 — Financing and the loan
Convert your AIP into a firm loan offer. Compare fixed versus floating packages, lock-in periods, and the rate after any teaser period — not just the headline first-year rate. Your lawyer handles the conveyancing and CPF usage; your banker handles disbursement. For a new launch, the bank disburses progressively as construction hits each stage.
Step 8 — Completion and key collection
For a resale, completion is typically 8–12 weeks after exercising, when the balance is paid and keys handed over. For a new launch, completion follows the progressive payment schedule until Temporary Occupation Permit (TOP). At handover, do a thorough defects inspection before signing off — the defects liability period is your window to have the developer rectify issues.
The costs people forget
- Maintenance fees (monthly), property tax (annual, higher for non-owner-occupied).
- Renovation and furnishing — budget realistically, not optimistically.
- For investors: income tax on rental, and periods of vacancy between tenants.
- Seller's Stamp Duty if you sell within the holding period — relevant if your horizon is short.
Buy your condo with the numbers worked out first
The buyers who do well are the ones who fixed their budget, financing, and stamp-duty position before they fell in love with a unit. As Senior Director of Agency at ERA Realty Network (CEA Reg No. R045215J), leading the #KND team of 400+ agents, that's exactly the groundwork I do with every client. If you're buying a condo in 2026, message me before you start viewing.
WhatsApp Kenny directly: +65 8666 6600.