Financing and Stamp Duty

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

StagesPayment Under a Standard Payment Scheme (% of Purchase Price)
Upon the grant of Option to Purchase5% (Booking Fee)
Upon signing of the Sale & Purchase Agreement or within 8 weeks from the Option date15%
Completion of foundation work10%
Completion of reinforced concrete framework of unit10%
Completion of partition walls of unit5%
Completion of roofing/ceiling of unit5%
Completion of door sub-frames/ door frames, window frames, electrical wiring, internal plastering and plumbing of unit5%
Completion of car park, roads and drains serving the housing project5%
Notice of Vacant Possession (TOP)25%
On Completion date15%

DPS – Deferred Payment Scheme

StagesPayment Under a Standard Payment Scheme (% of Purchase Price)
Upon the grant of Option to Purchase5% (Booking Fee)
Upon signing of the Sale & Purchase Agreement or within 8 weeks from the Option date15%
Notice of Vacant Possession (TOP)65%
On Completion date15%

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

StagesPayment Under a Standard Payment Scheme (% of Purchase Price)
Upon the grant of Option to Purchase5% (Booking Fee)
Upon signing of the Sale & Purchase Agreement or within 8 weeks from the Option date15%
Completion of foundation work10%
Completion of reinforced concrete framework of unit10%
Completion of partition walls of unit5%
Completion of roofing/ceiling of unit5%
Completion of door sub-frames/ door frames, window frames, electrical wiring, internal plastering and plumbing of unit5%
Completion of car park, roads and drains serving the housing project5%
Notice of Vacant Possession (TOP)25%
On Completion date15%

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 PurchaseSecond PurchaseThird and subsequent purchases
Singapore CitizensN.A.12 %15 %
Permanent Residents5 %15 %15 %
Foreigners
(corporate entities)
20 %20 %20 %
entities25 %25 %25 %

 

 

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