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Financing Your Purchase

Home purchase is a long-term financial commitment. Hence, it is crucial for you to assess your budget and funding sources carefully before you purchase a new home. You can choose to finance your purchase using a combination of the following sources of funds:

  • CPF Housing Grant (only for first-timers purchasing Executive Condominium)
  • Bank Loan
  • CPF Monies
  • Personal Savings

If you have any enquiries or need assistance in determining the maximum loan amount for your new home purchase, please contact me at +65 83837839 or submit an enquiry here.

Financing your purchase an EC unit shall be as below:
1. EC purchasers will have to obtain loans from banks or financial institutions as HDB does not provide housing loans for the purchase of EC.

 

2. Mortgage Loan Restrictions: Loan-to-Value Limits, Total Debt Servicing Ratio, Mortgage Servicing Ratio)

i) On 11 Jan 2013, the Monetary Authority of Singapore (MAS) tightened the Loan-to-Value (LTV) limits for borrowers who already have at least one outstanding housing loan.

  • Exemption:  For EC purchasers who have an outstanding loan on the existing flat which would have to be sold upon TOP of the EC, the housing loan for the EC purchase is regarded as the 1st Home Loan. LTV limits on 1st Home Loan will apply.
MAS LTV Chart

ii) On 28 June 2013, the Monetary Authority of Singapore (MAS) introduced a Total Debt Servicing Ratio (TDSR) framework for all property loans granted by financial institutions to individuals. Banks need to ensure that borrowers’ total monthly debt repayments do not exceed 60% of their gross monthly income.

  • Exemption: For EC purchasers who own an existing flat which would have to be sold upon TOP of the EC, the monthly instalment of the existing HDB flat will be excluded in the computation of the total monthly debt repayments.

iii) On 9 Dec 2013, the Ministry of National Development (MND) announced that MAS will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions for EC units bought directly from developers at 30% of a borrower’s gross monthly income.

 

3. Payment of Resale Levy on Future ECs (announced on 9 Dec 2013)

Resale levy is applicable for future EC projects where the land sale is launched on or after 9 Dec 2013, including those where tenders have not closed by 9 Dec 2013.

Second-timers are NOT required to pay the resale levy for EC projects where land tenders were awarded before 9 Dec 2013. This includes the ECs launched in 2013, and the planned launches in 2014.

More information on the tender launch dates for EC land sales can be found in the Residential Development List > Executive Condominium (EC).