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EC Financing

It Is Crucial. Buying EC Should Be Loaded With Bundles Of Joy

Plan for Your Housing Loan for EC Purchase

Buying EC is a long-term financial commitment. It is crucial for you to look into EC Financing seriously, to assess your budget carefully before you start looking for an EC in Singapore to buy.

You should first work out what you can afford. You need to look into your current household income, existing expenses and debt obligations, available savings as well as your eligible loan amount.

You also need to find out what you need to pay for. Buying a New Launch EC involves making some upfront payments, as well as monthly payments such as your housing loan instalments.

We have put together some pointers to help you with your EC Financing:

  • Available Cash Savings
  • CPF Savings
  • Housing Loan

EC Financing Planning Part 1 – Available Cash Savings For Buying EC

Cash is required for the payment of:

  • Option Fee – You will have to pay an option fee of 5% of the EC Price in cash when you book an Executive Condo.
  • Downpayment – You will have to pay the 15% of the EC Price as the downpayment for the EC purchase. You may use your CPF Ordinary Account Savings to pay for the 15% (provided you manage to get the 75% housing loan) if not enough top up by cash.
  • Legal Fees and Stamp Duties – You may use cash or CPF Savings to pay for the legal fees and stamp duties. It may take some time for the withdrawal of CPF Savings for the payment. Please inform your appointed lawyer in advance to avoid any delay.

EC Financing Part 2 – Available CPF Savings For Buying EC

The use of CPF Savings for Buying Executive Condo is subject to CPF Board’s prevailing policies. With the Private Properties Scheme, CPF members can now use the savings in their CPF Ordinary Account to build or buy private residential properties in Singapore for their own occupation or investment.

You can login using your SingPass to check your CPF savings in the Ordinary Account.

EC Financing Part 3 – Housing Loan For Buying EC

Buying Executive Condo in Singapore, you need to obtain a bank loan. In most instances, you will have to take a housing loan to finance your Executive Condo purchase. For most people, this could be the largest financial commitment of their lives.

The following housing loan table (w.e.f. 6th July 2018) is for your easy reference. Kindly contact us at +65 9004 6396 if you have any inquiry.

Housing Loan1st Home Loan2nd Home Loan3rd Home Loan
Loan TenureUp To 30 Years31-35 YearsUp To 30 Years31-35 YearsUp To 30 Years31-35 Years
Sum of Tenure & Age of BorrowerUp To 65Above 65 Up To 65Above 65 Up To 65Above 65 
LTV Limit
(Individual)
75%55%55%45%25%25%35%15%15%
Cash Outlay5%10%10%25%25%25%25%25%25%
LTV Limit
(Non-Individual)
15%15%15%
 
Mortgage Servicing Ratio (MSR)30%
Total Debt Servicing Ratio (TDSR)60%
Stress Test Interest Rate3.50%

To take a housing loan, you must have:

  • Sufficient income to qualify for a loan
  • Steady income to pay back the housing loan with interest over 20 to 30 years

You are encouraged to explore the different housing loan packages offered by various banks. Do read through the terms and conditions for the different housing loans offered by banks and keep in mind that interest rate that may increase over the years.

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