Am I eligible?
Home purchase is a long-term financial commitment. Hence, it is crucial for you to assess your budget carefully before you buy a resale flat.
Cash is required for the payment of
(1) Deposit to seller (S$1,000 on option. $4,000 on exercise)
(2) Initial payment of resale price
If you are taking a housing loan from HDB or if you are not taking any loan, you have to pay a 10% initial payment, based on the resale price or valuation price of the flat, whichever is lower. You can use your CPF savings or CPF Housing Grant or a combination of both to make initial payment. If there is a shortfall, you will have to pay the balance in cash.
If you are taking a bank loan, the initial payment and mode of payment are as follows:
- 5% initial payment in cash
- balance 15% can be paid with your CPF savings, CPF Housing Grant, cash
(3) Cash-over Valuation (CoV) if applicable
If the resale price agreed between you and your sellers is above the market valuation, the difference between the resale price and the market valuation of the flat has to be paid in cash.
COV is however not a requirement for HDB resale transactions. Resale transactions take place on a “willing buyer- willing seller” basis and the price is open to negotiation and mutually agreed between both parties.
Depending on the outcome of the negotiation between the buyer and the seller, the resale price may be above, at or below the market valuation. For resale transactions where the resale price is at or below the market valuation of the flat, there is no need for buyer to pay any COV.
You can read more from hdb website, http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatFinances?OpenDocument
(4) Agent Commission
By market practice, we will receive a cheque (or in cash) up to 1% of the total transacted price for the flat.