Financing & Stamp Duty for EC
On your purchase, Financing & stamp duty must be understood before you proceed to purchase a new property.
Please note that ADSB is not applicable to EC. MSR 30% is the limit of financing for EC (TDSR also applies, whichever is lower). TDSR 60% is the limit of loan for Private Condominium or private properties. Where else, the private condominium has to consider only TDSR 60%. The loan tenure is determined by 65 (or 75) years minus IWAA (income weighted average age). That means the higher the age will result in lower age tenure. Using the 75 year age will also mean that the LTV (loan limit) is reduced.
Please call 93381648 or contact me for a clearer explanation of the IRAS ruling or visit www.iras.gov.sg. Stamp duty is applicable for all purchase of a residential house. I will be glad to work out the financing & stamp duty of your next investment as a reference.
Stamp duty is applicable for all purchase of a residential house. Additional Stamp Duty (ABSD) is applicable for second and more purchases for Singaporeans. For Permanent Resident and Foreigners, the ABSD is applicable for any purchases. For updated information on the ABSD, please visit iras.gov.sg or call 9338 1648 or contact me.
To be certain, a banker can be recommended. I will be glad to work out the financing & stamp duty of your next investment as a reference.
Housing Loan Information
Payment Scheme Loan quantum is also limited by MSR or TDSR (whichever is lower) which is set at 30%/60% of household income at the rate of 3.5% interest for a Tenure, which is determined using IWAA – Income Weighted Average Age.
Typical payment schemes available to EC are NPS and DPS. The prices differs by 2-3 %.
Payment Scheme for EC
NPS – Normal Payment Scheme
Stages | Payment Under a Standard Payment Scheme (% of Purchase Price) |
Upon the grant of Option to Purchase | 5% (Booking Fee) |
Upon signing of the Sale & Purchase Agreement or within 8 weeks from the Option date | 15% |
Completion of foundation work | 10% |
Completion of reinforced concrete framework of unit | 10% |
Completion of partition walls of unit | 5% |
Completion of roofing/ceiling of unit | 5% |
Completion of door sub-frames/ door frames, window frames, electrical wiring, internal plastering and plumbing of unit | 5% |
Completion of car park, roads and drains serving the housing project | 5% |
Notice of Vacant Possession (TOP) | 25% |
On Completion date | 15% |
DPS – Deferred Payment Scheme
Stages | Payment Under a Standard Payment Scheme (% of Purchase Price) |
Upon the grant of Option to Purchase | 5% (Booking Fee) |
Upon signing of the Sale & Purchase Agreement or within 8 weeks from the Option date | 15% |
Notice of Vacant Possession (TOP) | 65% |
On Completion date | 15% |
Buyer’s Stamp Duty/Additional Buyer Stamp Duty
Purchases are subjected to Buyers’ Stamp Duty which is:
- 1% on first $180,000
- 2% on next $180,000
- 3% on next $640,000
- 4% on the remainder
or simply: 4% of Purchase Price minus $15,400.
Financing & Stamp Duty for Private Condominium
TDSR 60% is the limit of financing for Private Condominium. The loan tenure is determine by 65 (or 75) years minus IWAA (income weighted average age). Stamp duty is applicable for all purchase of residential house. Interest rate for TDSR is set at 3.5%. To be certain, a banker can be recommended. I will be glad to work out the financing & stamp duty of your next investment as a reference.
Housing Loan Information
Loan quantum is also limited by TDSR which is set at 60% of household income at the rate of 3.5% interest for a Tenure, which is determined using IWAA – Income Weighted Average Age.
Payment Scheme
NPS – Normal Payment Scheme
Stages | Payment Under a Standard Payment Scheme (% of Purchase Price) |
Upon the grant of Option to Purchase | 5% (Booking Fee) |
Upon signing of the Sale & Purchase Agreement or within 8 weeks from the Option date | 15% |
Completion of foundation work | 10% |
Completion of reinforced concrete framework of unit | 10% |
Completion of partition walls of unit | 5% |
Completion of roofing/ceiling of unit | 5% |
Completion of door sub-frames/ door frames, window frames, electrical wiring, internal plastering and plumbing of unit | 5% |
Completion of car park, roads and drains serving the housing project | 5% |
Notice of Vacant Possession (TOP) | 25% |
On Completion date | 15% |
Buyer’s Stamp Duty
Purchases are subjected to Buyers’ Stamp Duty which is:
- 1% on first $180,000
- 2% on next $180,000
- 3% on next $640,000
- 4% on the remainder
or simply: 4% of Purchase Price minus $15,400.
Additional Buyer Stamp Duty
The purpose of ABSD is to serve as a disincentive to other groups of buyers, and aims to curb the excessive investment that can drive up prices.
First Purchase | Second Purchase | Third and subsequent purchases | |
Singapore Citizens | N.A. | 12 % | 15 % |
Permanent Residents | 5 % | 15 % | 15 % |
Foreigners (corporate entities) |
20 % | 20 % | 20 % |
entities | 25 % | 25 % | 25 % |