Buying a new launch condo in Singapore is a structured process, with rules on loans, stamp duties and timelines that apply to every project. Knowing these in advance makes the preview and booking day far less stressful, and helps you avoid mistakes that can be costly. This guide walks through each step, using One Chuan Grove as an example where helpful.
Rates and rules below are as published by IRAS, MAS, CPF Board and HDB at the time of writing. They can change; always check the official sources or ask your lawyer and banker before you commit.
Step 1: Work out your budget
Start with what you can comfortably afford, not with the unit you like. Your budget is made up of:
- Cash savings for the minimum cash down payment, stamp duties and legal fees;
- CPF Ordinary Account savings, which can be used for most of the down payment and for monthly instalments, subject to CPF limits;
- the bank loan you qualify for, which depends on your income, age, existing debts and the number of home loans you already have; and
- for current owners, the sale proceeds of your existing home, after repaying its loan and refunding CPF used plus accrued interest.
Leave a buffer for interest rate changes, renovation and furniture, and an emergency fund of at least six months of expenses.
Step 2: Understand the loan rules
Total Debt Servicing Ratio (TDSR)
Banks must make sure your total monthly debt repayments, including the new home loan, car loans, credit card and other debts, do not exceed 55% of your gross monthly income. The bank calculates this using a medium-term interest rate set by MAS (a floor of 4% for residential property loans), not the actual lower rate you might pay at the start, so your borrowing limit is lower than you might expect.
Loan-to-value (LTV) limits
| Number of outstanding housing loans | Maximum LTV* | Minimum cash down payment |
|---|---|---|
| None | 75% | 5% |
| One | 45% | 25% |
| Two or more | 35% | 25% |
*For loans with a tenure of up to 30 years that end before age 65. Longer tenures or loans extending past 65 have lower limits (55%, 25% and 15% respectively).
Get an in-principle approval
Before the preview, ask a bank or mortgage broker for an in-principle approval (IPA). It confirms how much you can borrow, so you can shortlist units with confidence. IPAs are typically valid for around 30 days, so time it close to the launch.
Step 3: Budget for stamp duties
Buyer's Stamp Duty (BSD)
BSD applies to every residential purchase, at the following tiered rates on the purchase price:
| Portion of purchase price | BSD rate |
|---|---|
| First S$180,000 | 1% |
| Next S$180,000 | 2% |
| Next S$640,000 | 3% |
| Next S$500,000 | 4% |
| Next S$1,500,000 | 5% |
| Above S$3,000,000 | 6% |
For example, BSD on a S$2,000,000 purchase is S$69,600.
Additional Buyer's Stamp Duty (ABSD)
| Buyer | 1st property | 2nd property | 3rd and subsequent |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Singapore Permanent Resident | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity / company | 65% | ||
Nationals of some countries with free trade agreements with Singapore are treated the same as Singapore Citizens for ABSD. Married couples with at least one Singapore Citizen who buy a second property may be able to claim an ABSD refund if they sell their first property within the time allowed; see our HDB upgrader guide.
Both BSD and ABSD must be paid within 14 days of signing the Sale and Purchase Agreement. Stamp duties are usually paid in cash first; your lawyer will advise whether CPF savings can be used to pay or reimburse them in your case. Use the calculator on our price page to estimate yours.
Step 4: Research the project
Before the preview, study the project carefully:
- Location: distance to the MRT, schools, shops, and noise sources. See the One Chuan Grove location guide.
- Developer: track record and build quality. See the developer page.
- Price benchmarks: recent new launch and resale prices nearby, such as Chuan Park.
- Supply: other launches in the area and in the same quarter.
- Unit choice: which unit types suit your needs; see floor plans.
- Completion date: when you can move in, and whether it fits your plans for schools or selling your current home.
Step 5: Preview, ballot and booking
During the preview, the showflat is usually open by appointment. For popular launches, buyers submit an expression of interest with their preferred unit types, and the developer runs a ballot to assign queue numbers. On booking day, buyers are called in order and choose from the units still available. Prepare a ranked shortlist across different stacks and floors in case your first choice is taken. Read more on our showflat page.
Step 6: Option to Purchase and Sale and Purchase Agreement
- Booking: you pay a 5% booking fee, usually by cheque or cashier's order, and the developer issues an Option to Purchase (OTP).
- S&P issued: within two weeks, the developer's lawyers send the Sale and Purchase Agreement and title documents to your lawyer.
- S&P signed: you have three weeks from receiving the S&P to sign and return it. You then pay the balance to bring your total to 20% of the purchase price, within eight weeks of the OTP date.
- Stamp duties: BSD and any ABSD are paid within 14 days of signing.
If you decide not to proceed before exercising the OTP, the developer may keep 25% of the booking fee, which is 1.25% of the price. Once the S&P is signed, you are bound to complete the purchase.
Step 7: During construction and completion
After the 20% down payment, the remaining 80% is paid in stages as construction progresses, under the Normal Progressive Payment Scheme. Your bank loan is drawn down at each stage, so instalments start small and rise over time. At TOP, you collect your keys, inspect for defects and pay the 25% TOP instalment. The final 15% is paid at the Certificate of Statutory Completion. The developer is responsible for rectifying defects reported within the 12-month defects liability period. Full details are in our progressive payment guide.
Common mistakes to avoid
- Stretching your budget to the TDSR limit with no buffer for higher interest rates.
- Forgetting ABSD timing if you still own another property.
- Choosing only one unit and having no backup on booking day.
- Ignoring the completion date when planning for schools or the sale of your current home.
- Relying on showflat furnishings without checking what is included.
Planning to buy at One Chuan Grove? We can prepare a personal budget, stamp duty and instalment plan for your situation. Contact us here.
Frequently Asked Questions
How much cash do I need to buy a new launch condo?
For a first housing loan at 75% loan-to-value, you need a 25% down payment, of which at least 5% must be cash and the rest can be cash or CPF. You also need Buyer's Stamp Duty and any ABSD, payable within 14 days of signing the S&P.
What is the TDSR?
The Total Debt Servicing Ratio limits your total monthly debt repayments, including the new home loan, to 55% of your gross monthly income.
How long do I have to sign the S&P after booking?
The developer must send the S&P within two weeks of the Option to Purchase being issued, and you then have three weeks to sign and return it, making about eight weeks in total.
Can I cancel after booking a new launch?
If you do not exercise the Option to Purchase, you forfeit 25% of the booking fee, which is 1.25% of the purchase price. Once the S&P is signed, you are legally bound to complete.
What is the difference between BSD and ABSD?
Buyer's Stamp Duty applies to every purchase at tiered rates up to 6%. Additional Buyer's Stamp Duty applies on top, depending on your residency status and how many residential properties you own.