Home Base SG

In Singapore, many people begin saving to buy a home very early in their career. In fact, a house is very likely to be the biggest purchase most Singaporeans will ever make in their entire lives. 

However, the cost of the house alone is not a clear indication of how much a potential homeowner would need to budget in order to afford a home. HDB’s website has a pretty clear layout on the types of costs you can expect to pay before you get your keys, however, it doesn’t give the estimated amounts.

That’s why we created this comprehensive checklist of pre-purchase costs so that you can include them in your budgeting plans and get a clearer idea of your affordability.

In order to apply for a BTO flat, homeowners need to pay an application fee of $10. This is applicable for every time they submit an application, so if you failed to obtain a BTO, you’ll need to pay the application fee again. And again. And again.

Those of us who’ve been through the process know how difficult it can be to successfully ballot for a BTO. If you’re not too picky with location, you may want to try for BTOs in these locations with fewer applications.  

• Non-matured estates: Sengkang, Woodlands, and Yishun
• Matured estates: Clementi and Tampines

*Based on Flat Supply and Applications Received for the Sale of Balance Flats Exercise at 18 Nov 2019

It’s not a hidden cost, but the Option Fee and Option Exercise Fee is one of the mandatory upfront costs of purchasing a home. The Option Fee is the ‘reservation fee’ for the unit/property while the Option Exercise Fee is payable when you decide to go ahead with the purchase.

Do note that the Option fee will be forfeited if you decide not to buy the ‘reserved’ property!For new HDBs, you’ll only need to pay an Option Fee of $500 for 2-room flats, $1000 for 3-room flats and $2000 for 4-5 room flats.

For resale HDBs, the Option Fee is capped at $1000 while the total amount for both Option Fee + Option Exercise Fee is capped at $5000. These fees are negotiable with the seller and must not be $0.

For private properties, the Option Fee is 1% of the agreed selling price, while the Option Exercise Fee is between 4-9% of the agreed selling price. Together, the Option Fee and Option Exercise Fee will make up half or all of the 10% deposit for the property.

In Singapore, everyone is required to pay a Buyer’s Stamp Duty (BSD) for documents executed on the transfer or sale and purchase of property located in Singapore. BSD is calculated based on the purchase price or market value of the property (whichever is the higher amount).

If you’re purchasing a 2nd or subsequent property, you’ll need to pay the Additional Buyer’s Stamp Duty (ABSD) on top of the existing BSD. 

If you intend to pay for your new home through an HDB or bank loan (which is most Singaporeans), you’ll need to get a valuation report to assess the amount you can borrow. 

For HDBs it’s fairly straightforward—simply submit a Request For Value and pay a 1-time fee of $120 to HDB. 

For private properties, the bank you intend to get the loan from will have their own team of valuers and the total sum you can borrow will be based on this report. The valuation report will need to be paid for by the borrower and costs between $200-$400.

For sellers, we suggest getting several valuations to get a more accurate idea of the value of your home. You can get these from most banks but we also strongly suggest going to SISV.

A conveyance lawyer is required for the preparation of property conveyancing legal documents. Both buyer and seller must have their own conveyance lawyer. 

For buyers, the conveyance lawyer will hold the funds in trust and disburse the payment to either the developer or the seller according to the agreed payment schedule. For sellers, the conveyance lawyer will settle all outstanding mortgage and CPF payments before ceding the excess.

For HDB, DBSS and EC transactions we recommend that you engage HDB to act on your behalf (it’s much cheaper!). The fee is calculated as shown:

• First $30,000: $0.90 per $1,000
• Next $30,000: $0.72 per $1,000
• Remaining Amount: $0.60 per $1,000

Do note that the minimum conveyancing fee chargeable is $20 and that conveyancing fees are subject to GST!

For private properties, you’ll need to engage a private law firm which could cost you between $1,500 – $3,000. Do note that some lawyers charge additional fees to help you apply for the use of CPF.

If you’ve already engaged HDB or a law firm, they’ll also be available to assist you with your mortgage loan. 

For HDB, you can check their fees through their calculator.

For a private law firm, they will usually offer a package deal for both purchasing and mortgaging, which is included in the $1,500 – $3,000 stated above. 

However, you’ll still need to pay for the bank’s legal fees, which will also cost between $1,500 – $3,000. The good thing is that it is possible to ask the bank for a waiver or subsidy, so be sure to shop around the banks!

A caveat is an official notice. Regardless of whether you’ve engaged HDB or a private conveyancing lawyer, buyers will need to spend $64.45 for a buyer’s caveat, $32 for the Title Search Fee and another $64.45 for a Mortgagee’s Caveat if you’re taking a home loan.

We’ve done the math for you, it’s a total of $160.90!

All these costs added on top of a down payment could prove too much for so many average Singaporean families. We understand how every additional cost could mean tightening the belt for the next few months. 

That’s why we want to help you understand how much your dream home could cost and either figure out a plan to pay for it without your finances hitting rock bottom, or find a suitable home within your budget.