I’ve been asked by many people (okay, it was three) about my homebuying journey, and it’s been something I wanted to talk about for the longest time!
Check it out on my YouTube! Likes and comments help my channel greatly and I appreciate everyone who watches 😀
The process of buying a resale condo
|Get approval-in-principle loan (maximum 75% of property purchase price)||–||–|
|Make an offer to buy (i.e. Booking Fee)||1% of property price||Cash|
|Seller accepts, and buyer exercises the offer to buy (i.e. Option Fee)||4% of property price||Cash|
|Hire a conveyancing lawyer||$2,000 to $3,000||Cash or CPF|
|Pay Buyer’s Stamp Duty (and Additional Buyer’s Stamp Duty if applicable)||1% on first $180,000|
2% on first $180,000
3% on next $640,000
4% on amounts above $1 million
|Cash or CPF|
|Balance of downpayment||20% of property price||Cash or CPF|
My advice for homebuyers
Get an approval-in-principle (AIP) loan
An AIP loan is checking with a bank whether you are eligible to take out a mortgage. If you make an offer to buy a property and subsequently can’t secure a mortgage for your loan, you have to forfeit your booking fee. 1% of a $1 million property is $10,000!
Use a comparison mortgage tool
Get the best mortgage package by comparing rate with a mortgage comparison tool. I have tied up with Redbrick to offer you homebuyers a free mortgage consultation.
They would even advise you on property matters beyond just mortgage comparison, which could be a useful second opinion to your property agent.
View multiple units
This probably goes without saying, but it takes a lot of effort and time especially if you are like me and aren’t that excited for property viewings.
I’m glad to have persisted and viewed enough units until I found something that I was happy with.
Stick to a budget
It’s easy to get carried away since buying an apartment is an exciting stage of life, but starting your new life in a new place wouldn’t be as enjoyable if you are beset with a crippling mortgage.
Don’t forget you will have more bills and expenses to take care of once you move out, so set a sensible budget and try to keep with it. I would generally recommend keeping your monthly mortgage within one-third of your income.
Keep up to date on the best cashback/mile cards, financial products, attractive deals, and more tips to maximise your financial wellbeing by subscribing to my Telegram channel.
Subscribe to the channel, then join the group chat. You would often benefit from the tips exclusively shared in the group chat!
Disclaimer: I may receive an affiliate/referral fee when you sign up for services/products on this site, and such fees keep the site running. I would only recommend services/products I would personally use or recommend to my own friends and family, but I do not provide any warranty or guarantee for the quality of these services/products. Please exercise due diligence when signing up for any service/product as I will not be liable for any personal loss, financial or otherwise. None of the information here constitutes personal financial advice. Thank you for supporting my site!