HomeFinancing

It is best recommended to work out your budgeting before committing to a Home Purchase. If you are planning to take a bank loan, do approach professional bankers for an In-Principle Approval (IPA) assessment to see how much you or the affiliated parties can borrow. Alternatively, reach out to us and we can assist to plan and suggest the plans for you.

First, buyers will have to pay a 5% booking fee in cash to obtain the Option-to-Purchase (OTP). Once you’ve been granted the OTP, the developer is required to deliver the Sale & Purchase Agreement (S&P) to you within 14 days from the date of the Option.

Upon signing the S&P, you will be required to pay a 15% down payment within 8 weeks from the Option date. You can pay either with cash or your CPF Ordinary Account (OA). At this point, you will need to pay a 5% booking fee + 15% down payment = 20% of the purchase price.

*If the OTP is not exercised before it expires, the developer will be entitled to forfeit 25% of the booking fee. The other 75% of the booking fee will be refunded within four weeks.

For this scheme, payments only increase progressively as the construction works reach a specific milestone. For example, you would pay the developer one instalment upon foundation is completion, one more payment when the concrete is reinforced and another when the brick walls are ready. These payment by instalments, typically 5 – 10 per cent.

The advantage to this is the lower initial monthly repayments and that, even if the developer is late or the milestones are not reached, the loan repayments do not increase yet. During the initial stages, payments are far apart. Payments become more constant from 4th stage onwards.