How much needs to be paid in stages for buying a resale private home priced at $1.4 million by a PR, including a detailed timeline?

When buying a resale private home in Singapore priced at $1.4 million, here is a detailed breakdown of the payments and the timeline:

Option to Purchase (OTP) Stage

• Booking Fee: Typically 1% of the purchase price, which is $14,000. This is paid in cash when you secure the OTP from the seller.
• Engage Solicitor: You will also need to engage a solicitor, which may cost around $3,000.

Option Exercise Stage

• Option Exercise Fee: Usually 4% of the purchase price, minus the 1% booking fee already paid. So, this would be $56,000 - $14,000 = $42,000. This fee is paid when you decide to exercise the OTP, typically within two weeks from the day of booking.

Stamp Duties

• Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD): These need to be paid within two weeks of signing the Sales and Purchase (S&P) agreement.
  • BSD for a $1.4 million property would be calculated as follows: 1% of the first $180,000, 2% of the next $180,000, and 3% of the remaining $1.04 million. This totals to $1,800 + $3,600 + $31,200 = $36,600.
  • ABSD rates vary depending on the buyer's profile but for a Singaporean buying their second property, it would be 17% of the purchase price, which is $238,000.
  • These duties can be paid using cash or funds from your Central Provident Fund (CPF) Ordinary Account.

Completion Stage

• Down Payment: 20% of the purchase price, which is $280,000. This can be paid using cash or CPF funds. This payment is typically made within 8-12 weeks from exercising the OTP.
• Bank Loan: The remaining 75% or more, depending on the loan-to-value (LTV) ratio, is financed through a bank loan. For a $1.4 million property, this would be $1,050,000.

Other Costs

• Stamp Duty for Mortgage Documents: 0.4% of the loan amount, up to a maximum of $500.
• Valuation Fee: Around $500, required if a loan is obtained.

Here’s a summary of the payments:
- Booking Fee: $14,000
- Option Exercise Fee: $42,000
- BSD and ABSD: $36,600 (BSD) + $238,000 (ABSD) = $274,600
- Down Payment: $280,000
- Bank Loan: $1,050,000
- Solicitor Fees: Around $3,000
- Other Minor Costs: Approximately $1,000 (stamp duty for mortgage documents and valuation fee)

This breakdown helps you understand the financial commitments at each stage of buying a resale private home in Singapore. For more detailed information and to stay updated, you can refer to the resources available on EdgeProp Singapore.