PAYMENT SCHEME FOR EXECUTIVE CONDOMINIUM
What Affects Loan Amount and Tenure?
Generally, the younger you are, the longer your maximum loan tenure possible. Regulations have also capped maximum loan tenures for HDB flats and private properties at 30 and 35 years respectively.
For loan tenure longer than 25 years for HDB flats (or 30 years for private properties), the maximum loan amount could be reduced to 60% of property purchase price as well.
Income and Financial Commitment
- In calculating your maximum home loan amount, banks will take into account the ratio of your debt to your income. This is called the Total Debt Servicing Ratio (TDSR) and this ratio is capped at 60% of all borrowers’ gross monthly income.
- If you are purchasing a Executive Condominium, banks also have to calculate your Mortgage Servicing Ratio (MSR). MSR is capped at 30% of all borrowers’ gross monthly income. Calculation of MSR is based on loan amount and combined monthly gross income.
- Your maximum home loan amount is determined by TDSR, MSR, loan tenure and a medium-term 3.5% interest rate.
Normal Payment Scheme ( NPS )
Normal Payment Scheme will be smiliar to Progressive Payment Scheme, which allows payment of your monthly installments, progressively as the stages of construction goes.
Defer Payment Scheme ( DPS )
Defer Payment Schemes allow owners to start servicing their loan, only when the Executive Condominium is ready for occupation and move in.
Defer payment scheme is a popular choice to assist home owners who are servicing current HDB housing loan and they do not need to service 2 housing loans concurrently
BUYER STAMP DUTY (BSD)
Requirement to Pay BSD
You are required to pay BSD for documents executed for the sale and purchase of property located in Singapore. BSD will be computed on the purchase price as stated in the document to be stamped or market value of the property (whichever is the higher amount)
If the benefit is stated in the document to be stamped and is a cash discount (i.e. cash, non-post dated cashier order or cheque) to be given to the purchaser upon execution of the document (and not later), the amount of discount may be deducted from the purchase price to determine what is the amount of consideration for stamp duty purpose. This is provided that the nett price is still reflective of market value.
If the document to be stamped stated a non-cash benefit to be given (e.g. furniture voucher, rental guarantee, car or lucky draw), the value of benefit is not deductible from the purchase price for stamp duty purpose.
If the cash or non- cash benefit is not stated in the document to be stamped, the value of the benefit is also not deductible from the purchase price for stamp duty purpose.
The first instrument executed relating to a sale and purchase is liable to ad valorem duty (i.e. full duty). Subsequent document(s) relating to the same sale transaction are not liable to Stamp Duty.
Rates and Computation
BSD1 is computed based on the purchase price or market value of the property, whichever is higher.
There are differentiated BSD rates between residential and non-residential properties. The BSD rate for acquisition of residential properties is up to 4%.
The BSD rates are as follows: