What are the payment stages for buying a resale private home?

When buying a resale private home in Singapore, the payment process is structured into several key stages:

Option to Purchase (OTP)

• Option Fee: Typically 1% of the purchase price, paid in cash when you secure the OTP from the seller. This gives you a period, usually 14 days, to decide whether to proceed with the purchase.

Exercising the OTP

• Option Exercise Fee: Usually 4% of the purchase price, minus the 1% option fee already paid. This fee is paid when you decide to exercise the OTP and confirm your intention to purchase the property.

Stamp Duties

• Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD): These need to be paid within 14 days of exercising the OTP. The BSD is calculated based on the purchase price or market value of the property, whichever is higher. ABSD applies to certain categories of buyers, such as Singaporeans buying their second property, Permanent Residents, foreigners, and companies.

Bank Loan Application

• Loan Application Fee: Varies by bank, paid when you submit necessary documents to secure a loan for the property.

Signing Sales and Purchase Agreement

• Down Payment: 20% of the purchase price, which can be paid using cash or funds from your Central Provident Fund (CPF) Ordinary Account. This is typically paid during the completion of the Sales and Purchase agreement, around 8-12 weeks from exercising the OTP.
• Legal Fees: Usually range from $2,500 to $3,000, depending on the law firm.

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.
• Additional Cash and CPF: Any shortfall in the loan amount must be covered using cash or CPF funds.

These stages and associated payments are crucial for completing the purchase of a resale private home in Singapore. For more detailed information and to stay updated, you can refer to the resources available on EdgeProp Singapore.