EC Payment Scheme and Financing Your Executive Condominium

(Please note that this is not intended as financial advice. This is meant as an illustration for general purpose. For a more in-depth analysis for yourself, do contact us or a mortgage banker so that we can assist you better.)

We illustrate the EC payment scheme with an example. In this case, we presume an engaged Singaporean couple (both Singaporeans) is looking to purchase a 3 bedroom executive condominium of $800,000 in Punggol. They have checked their eligibility to purchase and qualify to purchase an executive condo. Their combined gross monthly income is $9,000 and are first-timer applicants.

Cost to the couple:

  • 3 bedroom executive condo in Punggol = $800,000
  • Stamp Duty (3% minus $5400) = $18,600 (Cash or CPF)
  • Legal fees (Usually subsidised by banks, up to $2,500. You may check with our preferred banking partners on the right)

Initial cash payment: 5% of executive condominium purchase price = $40,000

CPF payment: 15% of executive condominium purchase price (within 8 weeks of purchase) = $160,000.

Property Purchase Price

$800,000

Initial Cash Payment (5%)

$40,000

CPF Payment (15%)

$120,000

Stamp Duty (Cash or CPF)

Legal Fees

$18,600

Up to $2,500

Loan (80%)

$640,000

(Being two Singaporeans with income below $10,000, they qualify to receive $30,000 in CPF Housing Grant. The grant of $30,000 will be credited into their CPF accounts. They thus have to ensure that they have $130,000 in CPF in their Ordinary Account (OA) initially.

For a Singapore Citizen + Singapore PR couple, the CPF Housing Grant eligible is $20,000. They can enjoy the full housing subsidy in future if their child is a Singapore Citizen. This is known as Citizen Top-Up which they have to apply.

Note that this CPF Housing Grant is only available to First-Timer Applicants.)

*More information with regards to CPF Housing Grant for Executive Condominiums can be found here on the HDB website. In summary:

Gross Monthly Household Income

SC/SC

SC/SPR Household

Half-Housing Grant*

Up to $10,000

$30,000

$20,000#

$15,000

$10,001 to $11,000

$20,000

$10,000#

$10,000

$11,001 to $12,000

$10,000

$0#

$5,000

$12,001 to $14,000

$0

$0

$0

*Half-Housing Grant refers to one applicant is a first-timer applicant, while the spouse has previously taken a housing subsidy.
#Can apply for Citizen Top-Up in future when the child is a Singapore Citizen.

There are two schemes available to EC home buyers:

  1. Normal Payment Scheme (NPS) and
  2. Deferred Payment Scheme (DPS).

The NPS is recommended as home buyers on the DPS usually pay 2-3% more. You can view the schedule of payments under the Normal Payment Scheme (Progressive Payment) and Deferred Payment Scheme below.

ec-normal-payment-scheme-progressive-payment

ec-deferred-payment-scheme

The maximum loan amount you can get from banks for your executive condominium loan is 80% of the purchase price. Please check with one of our recommended banks to get a more in-depth loan assessment for yourself.

There are no HDB loans for executive condominiums. It is highly recommended to ensure you have gotten In-Principle Approval (IPA) from the bank prior to booking a unit. (Please check with our partner mortgage bankers here.)

 

— 10 Comments —

  1. Hi, Can I check why the loan amount for condo and EC are different? As the difference is quite drastic.. about 100% more for condo.

    • Hi Serene,

      That is because loan rules for EC follows the 30% Mortgage Servicing Ratio (MSR), while for condos it follow 60% Total Debt Servicing Ratio (TDSR), which explains why it can be a 100% difference.

    • Accurate stamp duty calculation is as follows:

      Stamp duty 1% of first $180,000 = $1800
      Stamp duty 2% of next $180,000 = $3600
      Stamp duty 3% for subsequent amount

      Hence for easy calculation, the stamp duty is calculated as 3% of purchase price – $1800 – $3600 (total of $5400)

    • Hi, Gabriel, it would be best if you engage the help of a property agent / real estate salesperson (RES) to help you with the decision making process. There are many things to consider, from your own suitability to getting an EC right down to choosing the best unit for yourself.

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