Step 1 – Check Your Eligibility
In order to buy an Executive Condominium (EC) in Singapore, you have to follow HDB’s rules and fulfil for the following eligibility conditions.
The applicant must be at least 21 years old and if the applicants are applying under the Joint Singles Scheme, they must be at least 35 years old.
The main applicant must be a Singapore Citizen and at least 1 other applicant must be a Singapore Citizen or Singapore Permanent Resident. If the applicants are buying under Joint Single Scheme, all the applicants must be Singapore Citizens.
3. Family Nucleus
The applicants must fall under one of these following family nucleus in order to be eligible to purchase a brand new Executive Condominium. The schemes are as follows:
– Public Scheme
– Fiancé/Fiancée Scheme
– Orphans Scheme
– Joint Singles Scheme
D. Property Ownership
In order to be eligible for the purchase, applicant must not own other property be it locally or overseas, and have not disposed of any within the last 30 months. Applicant must also not bought a new HDB/ DBSS flat or EC, or received a CPF Housing Grant before; or, have only bought 1 of these properties/ received 1 CPF Housing Grant thus far.
E. Income Ceiling
The household income should be $16,000 or below.
Step 2 – Work Out Your Finance
After checking your eligibility, before you start shopping for your EC, the next step would be to check your financial situation. The downpayment for buying an EC is 25%, while the balance 75% will be financed by bank, as you will not be able to get a HDB loan for buying EC.
Do note that EC buyers’ Mortgage Servicing Ratio (MSR) cannot exceed 30% of their incomes. That means you cannot be paying more than 30% of your combined income in home loan repayments.
And of course, you are also held to the Total Debt Servicing Ratio (TDSR) rules stating that your total loan liabilities (including car loans, credit card debt and so on) cannot exceed 60% of your income.
EC buyers are subject to the Mortgage Servicing Ratio (MSR) rules which states that your monthly mortgage repayment cannot exceed 30% of your combined monthly income. You will also be held to the Total Debt Servicing Ratio (TDSR) rules that states that your combined monthly loan repayments (including personal loans, car loans, education) cannot exceed 60% of your combined monthly income.
Besides these, buyers also have to factor in Buyer’s Stamp Duty and legal fee. It is advisable to approach a bank to get a Approval-In-Principal before purchasing your Executive Condominium.
Step 3 – Select Your Executive Condominium
Now that you are eligible to buy an Executive Condominium and have worked out your finances, it is time to look out for your EC.
At the time of writing, there are 2 executive condominium available for selection which are launched in 2019, they are Rivercove Residences at Anchorvale and Piermont Grand at Sumang Walk. Upcoming launches in 2020 includes OLA at Anchorvale, Parc Canberra at Canberra and an upcoming EC at Tampines Avenue 10.
Step 4 – Secure Option To Purchase
When you have selected your unit, you will have to pay 5% of the purchase price as booking fee to secure an Option to Purchase (OTP) from the developer. This 5% payment has to be made in cash. Then you have to wait for HDB to approve the purchase, which usually takes 4 to 5 weeks.
Step 5 – Get Your Sale & Purchase Agreement
Once HDB approve the purchase, the Sale & Purchase Agreement (S&P) will be sent to you.
You now have 3 weeks to exercise the option by signing and returning the S&P. You also have to pay the 20% balance of the downpayment and buyer’s stamp duty. The balance 20% has to be paid using HDB Housing Grants, CPF monies, or cash.
Step 6 – Payment Scheme
There are two schemes you can choose for paying up the rest of your EC. You can choose the Normal Progressive Payment Scheme, where you have to start repaying your home loans before picking up the keys. Otherwise, you can choose the Deferred Payment Scheme, where you will only have to start repaying their home loan after picking up their keys.
Step 7 – Collect Key
A new launch EC will usually takes 3 years to build. You will be informed by the developer of the estimated date for the release of the Temporary Occupation Permit (TOP). Once you receive your keys, you can start renovating and move into your new home.