All you need to know about the condo payment schedule

6 min read

The most unappealing part of buying a condo isn’t having to stand in snaking queues in showflats. Rather, it’s realising that you have to pay for the property that usually takes the thrill out of the whole affair. That’s why you should know all about the condo payment schedule before you enjoy the home-hunting experience. Let this article fill you in.

New launch vs resale condos: The difference

Buying a condo unit typically falls in either of two categories:

  • Buying a unit in a completed development. This is usually a resale, or an unsold unit directly from a developer.
  • Buying a unit in an uncompleted development, aka a building under construction (BUC). This is usually a new launch condo unit bought directly from the developer, but can also be a sub-sale from a buyer.

There are a variety of factors that might push you towards one or the other. For example, you might not be willing to wait three plus years for your unit to be constructed, or you want to purchase a unit in a development that’s already been completed (and can be inspected with your own eyes). The thing is that, while the condo payment schedules for the two types aren’t vastly different from each other, there are differences you should know.

Condo payment schedule of uncompleted developments

Let’s take the example of newlywed couple Eddie and Alexandra, who are both Singapore citizens with a combined income of S$14,000/month, and CPF balance of S$30,000.

They’re interested in purchasing a unit in a new development that hasn’t started construction yet, at a price of S$1,000,000. To help process their transaction, they’ve engaged private legal counsel who have agreed to charge S$3,500 for the entire purchase, and have obtained their valuation report at S$350.

Since this would be their first bank home loan, they are entitled to up to 75% of the purchase price according to the loan-to-value (LTV) limit. This means that if they were to take out the full 75% financing, the loan quantum would be S$750,000.

As for the stamp duty, as they’re both Singaporeans and this is their first property, they’ll only have to pay the Buyer’s Stamp Duty (BSD).

You can use 99.co’s Stamp Duty Calculator to conveniently calculate how much BSD you’re subjected to.

Artist's impression of The Watergardens at Canberra
Artist’s impression of The Watergardens at Canberra.

Here’s what their condo payment schedule would look like, if they opt for the progressive payment scheme that’s available for new launch condos.

Fee payable/stage of work  Approximate timeframe % of purchase price Amount payable Payment mode
Exercising the option (Option or booking fee) 5% S$50,000 Cash
Sign the Sale and Purchase (S&P) agreement to exercise the OTP Within 3 weeks of receiving it
Buyer’s Stamp Duty (BSD) Within 14 days of signing the S&P 1% of first S$180,000 S$24,600 Cash/CPF
2% of next S$180,000
3% of the next S$640,000
Downpayment Within 8 weeks of exercising the option 15% S$150,000 Cash/CPF
Legal fees ~S$2,500 – S$4,000 S$3,500 Cash/CPF
Valuation fee ~S$350 – S$500 S$350 Cash/CPF
Foundation of work ~6 – 9 months from launch 10% S$100,000 Cash and/or bank loan
Reinforced concrete framework ~6 – 9 months later 10% S$100,000
Brick walls of unit ~3 – 6 months later 5% S$50,000
Ceiling of unit ~3 – 6 months later 5% S$50,000
Door and window frames in position, wiring, internal plastering and plumbing of unit ~3 – 6 months later 5% S$50,000
Car park, roads and drains servicing the project ~3 – 6 months later 5% S$50,000
Notice of vacant possession TOP date 25% S$250,000
Legal completion date Date of legal completion/certificate of statutory completion (CSC) 15% S$150,000
Total S$1,028,450

Keep in mind that the booking fee of S$50,000 needs to be paid entirely in cash, and cannot be supplemented using CPF or a bank loan.

You can also use 99.co’s progressive payment calculator to do the math for you!

Condo payment schedule for completed developments

Now let’s see how the finances work out if Eddie and Alexandra decide to buy a completed development instead.

Agent bringing couple on a property viewing
The good thing about buying a resale condo is that you can inspect the actual unit before the purchase.
Fee payable/stage of work  Approximate timeframe % of purchase price Amount payable Payment mode
Grant of option (Booking fee) 1% S$10,000 Cash
Exercise of option (Option fee) Within 14 days of grant of option 4% S$40,000 Cash
Buyer’s Stamp Duty (BSD) Within 14 days of grant of option 1% of first S$180,000 S$24,600 Cash/CPF
2% of next S$180,000
3% of the next S$640,000
Legal fees ~S$2,500 – S$4,000 S$3,500 Cash/CPF
Valuation fee ~S$350 – S$500 S$350 Cash/CPF
Completion of sale and purchase at lawyer’s office ~ 8 – 12 weeks of exercise of option 95% (balance of purchase price) S$950,000 Cash and/or bank loan
Total S$1,028,450

Again, the S$50,000 in booking and option fees will need to be paid completely in cash; CPF funds and bank loans cannot be used.

Other fees related to buying a condo

Take note that our estimations don’t include the interest for the bank loan, which will depend on the type of bank loan and its loan tenure.

Plus, there’s the condo maintenance fee that you’ll have to pay every three months. This depends on the condo, but it can range from S$250 to S$1,000 a month.

Would you buy a new launch or resale condo? Let us know in the comments section below or on our Facebook post. 

If you found this article helpful, 99.co recommends 7 common misconceptions about using CPF for housing and Singapore’s Buyer’s and Seller’s Stamp Duty: What you should know.

Looking for a property? Find the home of your dreams today on Singapore’s fastest-growing property portal 99.co! If you would like to estimate the potential value of your property, check out 99.co’s Property Value Tool for free. Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.

[Additional reporting by Virginia Tanggono]

 

Frequently asked questions

How much is the down payment for a condo?

In general, if you’re taking the full 75% financing from the bank loan, the downpayment will be 25%. Out of this, 5% must be paid in cash, while the remaining 20% can be paid in cash and/or CPF.

How does the progressive payment scheme work?

The progressive payment scheme allows you to pay according to the different stages of the construction. For instance, after the foundation work is done, you’ll have to pay 10% of the purchase price within 14 days.

Can you use CPF to pay for condo?

Yes, you can use your CPF Ordinary Account savings to pay for your condo. This includes the downpayment, stamp duty and home loan instalments. Depending on the law firm, you may be able to pay the legal fees with your CPF as well.

Looking for a property?

Find the home of your dreams today on Singapore’s fastest-growing property portal 99.co! If you would like to estimate the potential value of your property, check out 99.co’s Property Value Tool for free. Also, don’t forget to join our Facebook community page or Telegram chat group! Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.

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