Executive Condominium

Financing
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Plan Your Property Financing Ahead of the Purchase

1. Payment Schemes

Purchasers of a new Executive Condominium (EC) have a choice of Normal Progressive Scheme (NPS) or Deferred Payment Scheme (DPS).

Deferred Payment Scheme (DPS) allows the purchaser to defer the 80% loan repayment till the project is ready for move in, i.e. received the Notice of Vacant Possession. No loan repayment is required before Temporary Occupation Permit (TOP) is served. However, do note that the purchase price on DPS is about 3% higher than the NPS price.

The payment schedule and the % of purchase price payable is illustrated in the table below:


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2. CPF Housing Grant

The CPF Housing Grant is a housing subsidy provided by the government, to assist eligible First-Timer families to buy an Executive Condominium.

The CPF Housing Grant will be credited into the eligible purchaser's CPF Ordinary Account and can be used to pay for the balance downpayment at the time of signing of the Sales and Purchase (S&P) Agreement .


If you are from an SC/SPR household, you can enjoy the full housing subsidy by applying for the Citizen Top-Up within 6 months from the date your SPR family member takes up Singapore Citizenship or the birth of your SC child. Please note that the CPF Housing Grant is subject to approval by the relevant authorities.


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3. 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.
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. 

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4. Payment of Resale Levy on ECs (announced on 9 Dec 2013)
Source: http://www.hdb.gov.sg/cs/infoweb/residential/selling-a-flat/additional-information

i) Resale levy is applicable for EC projects where the land sale is launched on or after 9 Dec 2013

ii) Revised Resale Levy Policy

Applies to second-timer applicants who: 
  • Book their second subsidised flat from HDB on or after 03 Mar 2006, and
  • Submit their resale application to sell their first subsidised flat on or after 03 Mar 2006


iii) Previous Resale Levy Policy

Based on resale price or 90% of market valuation, whichever is higher.

Applies to second-timer applicants who: 
  • Booked a second subsidised flat or an Executive Condominium unit from the developer before 3 Mar 2006. This is regardless of whether they have sold or submitted a resale application to sell the first subsidised flat, or
  • Sold the first subsidised flat and opted for deferred resale levy, or
  • Submitted a resale application to HDB before 3 March 2006 for the sale of their first subsidised flat

Second-timers are not required to pay the resale levy for EC new launch projects where land tenders were awarded before 9 Dec 2013. 

  • EC Not Subject to Resale Levy (launched prior to Westwood Residences)
  • EC Subject to Resale Levy (Westwood Residences EC Launch & thereafter)
Tender launch dates for EC land sales : http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/executive-condominiums



Steps to Financing an EC
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