Loan Guide / Private Home Puchase

Step 1 Determine how much you can affrod. 

Up front costs

Option Fee

A portion of the purchase price that must be paid before an Option to Purchase (OTP)* is issued. An OTP will be valid for a period agreed by you and the seller, during which you have the sole right to purchase the property. (To exercise an OTP, you will generally need to pay 5% - 10% of the purchase price (as agreed by you and seller, and as stated in the OTP) within the validity period, less the booking fee.)

Buyer Stamp Duty

Buyer Stamp duty is imposed on documents executed for the sale and purchase of a property, and is to be paid within 14 days from the date that you accept the OTP or Sale and Purchase (S&P) Agreement#.


An OTP is a right or option given by the vendor of a property to an intending purchaser to buy the property at a specified price within a specified period of time (the validity period of the option).


An S&P Agreement is a formal contract between the buyer and seller for the sale and purchase of a property.

Computation of Buyer Stamp Duty^

Duty payable at ad valorem of the purchase price (PP):

First $180,000


Next $180,000




This does not include any Additional Buyer Stamp Duty (ABSD) which may be payable, and buyers should seek independent legal advice if ABSD is applicable to them.

^Buyer Stamp duty amount is subject to change. Applicable to first time home buyer.

Legal Fees

The costs for legal services rendered in the purchase of the property

Housing Agent's Commission and Fees

A fee paid to the housing agent (if any) engaged for the purchase and/or sale of the property. The amount of commission is calculated as a percentage (varying from 1% to 2%) of the purchase price.

Ongoing mortgage instalments

Monthly mortgage instalments can be paid in cash or with CPF savings.

Disbursement of Loan Amount

  1. For completed properties*, the loan will generally be disbursed in one lump sum when you take over the property
  2. For uncompleted properties^, the loan will be disbursed in stages (Standard Payment Schemes), depending on the stage of construction of the property.

Loan Tenure

Generally, banks will grant loan of a minimum tenure of 5 years and up to 30 years.

Where there are Joint Borrowers to the loan, the weighted average age of all Borrowers will be used in computing the loan tenure, and the weightage is based on the gross monthly income of the Borrowers.

For example: Borrower A is 55 years old with gross monthly income of $5,000, and Borrower B is 25 years old with gross monthly income of $2,500. The total assessed income is $7,500. The average age is weighted more heavily towards the higher income earner. In this case, (25 x $2500/(2500+ 5000)) + (55 x 5000/(2500+5000)) = 8.3 + 36.7 = 45 years old (rounded up).

Applying the above equation, assuming the sum of the loan tenure and the borrowers' age is 65, the loan tenure that can be granted will be 20 years, i.e. (65 - 45) years.

Interest Rate

The interest rate varies depending on the type of property and the type of home loan package. Please check with us for the latest applicable interest rate package.


Completed properties refer to properties that have obtained the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC). CSC is the point in time when the developer is ready to hand over the vacant possession of the unit to the purchaser by the date specified in the S&P Agreement.


Uncompleted properties refer to properties that are under construction and have not obtained the TOP or CSC.

Ongoing expenses after your purchase.

Property Tax

All property owners are liable for property taxes based on a percentage (Tax Rate) of the annual value (AV) of a property. The Tax Rate is 10% per annum.

Fire Insurance

An insurance policy that covers loss or damage to the building by fire or other insured perils up to the reinstatement value or outstanding loan amount. This type of insurance is generally required so long as your property is mortgaged to a bank. The premiums for the Fire Insurance is payable by the Borrower(s).

Mortgage Insurance

A mortgage reducing term insurance policy that covers the repayment of your outstanding home loan in the event of your death, terminal illness or total and permanent disability.

Conservancy or Maintenance Fees

Fees collected for the purpose of maintenance and use of common property (e.g. tennis courts, lifts, common areas, etc).

this wedsite contains gerneral information only and does not constitue an offer, invitation or a recommendation to enter into any transaction. It does not have regard to the specific objectives, financial situation and particular needs of any specific person. It should not be relied upon as legal advise. Whilst reasonable cares has been taken to ensure the accuracy of the information herein, No warranty or respresentation is made as its correctness or completeness. James Tan disclaims liability for any errors or omissions contained in it. James Tan accepts no liability whatsoever for any direct, indirect or consequential loss arising from any use or reliance on the information, or any reliance on the information, or anything contained in this document. 

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James Tan
Associate Division Director
CEA Licence No.:
L3002382K / R003524Z
+(65) 9363 8008