Buying property in Singapore is less about timing the market and more about preparing the arithmetic. The buyers who move confidently are the ones who know their loan quantum before they view a single unit, who have already priced in stamp duties and legal fees, and who have stress-tested their instalment at the rate their package will eventually revert to.
This guide covers the entire buying journey in 2026 — affordability, financing, costs, the Option to Purchase, and completion — so you can walk into a showroom already knowing your numbers.
How much can I afford?
Affordability in Singapore is determined by three separate gates, and you must clear all three:
- Income-based loan limits — TDSR and MSR cap how much a bank will lend you.
- Loan-to-Value (LTV) limits — cap the loan as a percentage of the price, based on how many mortgages you already hold.
- Cash and CPF available — determines whether you can fund the down payment and duties.
The most common error is to work backwards from the property price. Work forwards from your income and liquidity instead — the price follows from those two numbers.
TDSR and MSR explained
Total Debt Servicing Ratio (TDSR)
TDSR caps all of your monthly debt obligations — property loan, car loan, credit cards, personal loans — at 55% of gross monthly income. It applies to all property purchases.
Mortgage Servicing Ratio (MSR)
MSR is stricter and applies only to HDB flats and new Executive Condominiums: your property loan alone cannot exceed 30% of gross monthly income.
Down payment and CPF
For a first private property with a bank loan, the down payment is 25% of the price: 5% in cash and 20% in cash and/or CPF Ordinary Account. If you already hold a mortgage, LTV falls to 45%, lifting the down payment to 55% (at least 25% in cash).
| Outstanding housing loans | Max LTV | Min cash |
|---|---|---|
| 0 | 75% | 5% |
| 1 | 45% | 25% |
| 2 or more | 35% | 25% |
CPF OA can cover the cash-and-CPF portion, legal fees and instalments — but cannot pay the 5% minimum cash or the stamp duties. Those are strictly cash.
Stamp duties and transactional costs
Stamp duties are payable in cash within 14 days of executing the document in Singapore.
| Cost | Applies to | Basis |
|---|---|---|
| Buyer's Stamp Duty (BSD) | Every purchase | Tiered scale on price; ~S$69,600 on a S$1.8m home |
| Additional Buyer's Stamp Duty (ABSD) | 2nd+ property, PRs, foreigners | 0% (SC 1st) to 60% (foreigners) |
| Legal fees | Every purchase | Typically S$2,000–S$3,000 |
| Valuation fee | Bank-loan purchases | Typically S$300–S$600 |
Worked example — S$1.8 million first condo
Minimum cash (5%): S$90,000 · Cash/CPF (20%): S$360,000 · BSD: ~S$69,600 · ABSD: S$0 · Legal + valuation: ~S$3,000
Total upfront: ~S$522,600, of which at least S$90,000 must be cash.
The buying process, step by step
1. Affordability and pre-approval
Get an in-principle assessment (IPA) from a bank before you view. It confirms your loan quantum under TDSR/MSR and prevents wasted viewings.
2. Viewing and negotiation
Compare on a per-square-foot basis, not just headline price, and check maintenance fees, remaining lease and rental yield if relevant.
3. Option to Purchase (OTP)
You pay an Option fee of 1% and receive the OTP, typically exercisable within 14 days. Signing the OTP does not yet bind you to complete.
4. Exercise the Option
On exercise you pay a further 4% (for a typical resale structure), making 5% total paid to the seller. The Sale and Purchase Agreement becomes binding.
5. Valuation and loan documentation
The bank instructs a valuation; the letter of offer is issued and you sign the mortgage documents with your law firm.
6. Completion
Completion typically occurs 8–12 weeks after the OTP date, when the balance is paid and the keys are handed over.
Common mistakes to avoid
- Not getting a bank pre-approval before making an offer.
- Forgetting that stamp duties are payable in cash, not CPF.
- Budgeting on the promotional rate instead of the reversion rate.
- Buying a second property before selling the first, triggering ABSD.
- Ignoring MSR when buying an HDB flat or new EC.
- Draining cash reserves — keep 6–12 months of instalments after completion.
Practical advice
Treat the down payment as the beginning of the cost, not the end. Prepare cash for stamp duties, legal fees and a post-completion buffer first, then structure the loan so the instalment is comfortable at the reversion rate. If you already own property, model the ABSD on the next purchase honestly — it is often the largest line after the price itself.
Frequently asked questions
How much do I need to buy a condo in Singapore?
For a first private property with a bank loan, expect a 25% down payment — 5% minimum cash and 20% cash and/or CPF — plus Buyer's Stamp Duty and legal fees. ABSD is zero for a Singapore citizen's first property.
What is TDSR and how does it affect my loan?
TDSR caps all monthly debt obligations at 55% of gross monthly income. For HDB flats and new ECs, MSR applies a stricter 30% cap on the property loan alone.
Can foreigners buy property in Singapore?
Foreigners can buy private condominiums and apartments without approval, but pay 60% ABSD. Landed property generally requires approval under the Residential Property Act.
How long does it take to complete a purchase?
A resale purchase typically takes 8–12 weeks from OTP to completion, with a 14-day Option exercise window. New launches follow a progressive payment schedule tied to construction milestones.
Is now a good time to buy?
It depends on your holding period and financing. A horizon of five years or more, a loan comfortable at the reversion rate, and adequate cash reserves matter more than short-term rate movements.
Related reading
- All Singapore property articles & guides
- CPF Housing Guide — using CPF for your purchase
- ABSD Singapore Guide
- Property Tax vs ABSD vs SSD
- Property Timeline Guide
- Freehold vs Leasehold Condo Comparison
External references
- IRAS — Stamp Duty for Property
- CPF Board — Home Ownership
- MAS — Property Loan Rules
- HDB — Eligibility & Loans
- URA — Property Market Information
- CNA — Property News
Request a property valuation
Planning your purchase? A current market valuation tells you exactly where you stand — down payment, stamp duties and realistic budget. Clear numbers, no obligation.
Request a valuationFlora He — Licensed PropNex Realtor · Keys2Homez