Plan for Your EC Financing
Buying EC is a long-term financial commitment. You must 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, current expenses and debt obligations, available savings as well as your loan amount eligibility.
You also need to find out what you need to pay. 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 key points to help you with your EC Financing:
- Available Cash Savings
- Available CPF Savings
- Housing Loan
EC Financing Part 1, 2, 3:
Cash payment for EC purchase:
- Option Fee – You need to pay an option fee of 5% of the EC Price in cash when you book an Executive Condo.
- Downpayment – You need 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.
The use of CPF savings for Buying Executive Condo is subject to CPF Board’s current 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-stay or investment.
You can log in using your SingPass to check your CPF savings in the Ordinary Account.
When it comes to buying an Executive Condo in Singapore, in most instances, you will have to take a housing loan to finance your EC purchase. For most people, this could be the most significant 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 Loan||1st Home Loan||2nd Home Loan||3rd Home Loan|
|Loan Tenure||Up To 30 Years||31-35 Years||Up To 30 Years||31-35 Years||Up To 30 Years||31-35 Years|
|Sum of Tenure & Age of Borrower||Up To 65||Above 65||Up To 65||Above 65||Up To 65||Above 65|
|Mortgage Servicing Ratio (MSR)||30%|
|Total Debt Servicing Ratio (TDSR)||60%|
|Stress Test Interest Rate||3.50%|
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 provided by banks and keep in mind that interest rate that may increase over the years.