Everything you need to know about the HDB BTO payment timeline

PHOTO: 99.co

Buying a BTO flat is almost a rite of passage for new couples in Singapore. But with the excitement of owning a home, comes the scary part: The BTO payment timeline to pay for the flat.

That’s why our top advice for prospective homebuyers is to make sure that their finances are sorted before applying for a BTO.

This ensures that they’re able to afford the payments when they’re due.

BTO payment timeline infographic
PHOTO: HDB

For that reason, we’ve come up with this little cheat sheet summarising the BTO payment timeline to help you figure out what you’re in when you sign the dotted line.

HDB BTO payment timeline

 
Stage of purchase Fees payable Amount payable Payment mode
BTO application Application fee $10 Credit card or mobile payment app (eg. DBS PayLah!, UOB Mighty, OCBC Pay Anyone, etc.)
Flat booking Option fee (forms part of the downpayment) Two-room Flexi: $500 NETS
Three-room: $1,000
Four-room and bigger: $2,000
Signing of Agreement for Lease Stamp duty First $180,000: One per cent Cashier’s Order, CPF
Next $180,000: Two per cent
Next $640,000: Three per cent
Remaining amount: Four per cent
Conveyancing fee First $30,000: $0.90 per $1,000
Next $30,000: $0.72 per $1,000
Remaining amount: $0.60 per $1,000
Downpayment If taking HDB loan: 10 per cent of purchase price
If taking bank loan with LTV of 75 per cent: Five per cent cash, 15 per cent CPF and/or cash
If taking bank loan with LTV of 55 per cent: 10 per cent cash, 10 per cent CPF and/or cash
Key collection Registration fee Lease In-Escrow: $38.30 Cashier’s Order, CPF
Mortgage In-Escrow: $38.30
Survey fee One-room: $150
Two2-room: $150
Three-room: $212.50
Four-room: $275
Five-room: $325
Executive: $375
Stamp duty for Deed of Assignment 0.4 per cent of the loan amount, up to $500
Home Protection Scheme If you’re using CPF to pay for loan instalments, depends on factors like outstanding loan
Fire insurance If you’re taking HDB loan, from $1.62 to $8.10 for five years
Balance of the purchase price If taking bank loan with 75 per cent LTV: Five per cent of purchase price with CPF and/or cash
If taking bank loan with 55 per cent LTV: 25 per cent of purchase price with CPF and/or cash

Here’s an illustration for taking an HDB loan

Let’s take the example of newlywed couple Mark and Sophie, who are both Singapore Citizens in their 20s.

They are first-timer applicants with a combined income of $5,000/month looking to purchase a three-room BTO Flat, with a purchase price of $300,000.

They also qualify for the Staggered Downpayment Scheme (SDS) and will be financing their purchase with an HDB loan which will cover up to 90 per cent of the purchase price, for a term of 25 years.

They also intend to service their loan instalments using their CPF.

 
Fees payable Amount payable
Application fee $10
Option fee (forms part of the downpayment) $1,000
Stamp duty $4,200
Conveyancing fee $206.08 (including GST)
Downpayment less option fee Five per cent of purchase price minus option fee: $14,000 (cash or CPF)
Registration fee Lease In-Escrow: $38.30
Mortgage In-Escrow: $38.30
Survey fee $212.50
Stamp duty for Deed of Assignment $500
Home Protection Scheme $132.30 annually
Fire insurance $4.87 for five years
Balance of the purchase price Downpayment: five per cent of purchase price: $15,000 (cash or CPF)
$270,000 (HDB loan)
Total $305,342.35

If you’re taking a bank loan for your BTO

Now let’s see how the finances work out if they were to take out a bank loan with a 30-year tenure.

Since it’s their first loan, they are entitled to a loan of up to 75 per cent of the purchase price.

In this case, they decide to go with legal counsel that their bank recommends, at a cost of $2,500.

 
Fees payable Amount payable
Application fee $10
Option fee (forms part of the downpayment) $1,000
Stamp duty $4,200
Legal fees $2,500
Downpayment less option fee 10 per cent of purchase price minus option fee: $29,000 (five per cent cash + five per cent cash or CPF)
Registration fee Lease In-Escrow: $38.30
Mortgage In-Escrow: $38.30
Survey fee $212.50
Stamp duty for Deed of Assignment $500
Home Protection Scheme $120.38 annually
Balance of the purchase price Downpayment: 15 per cent of purchase price: $45,000 (cash or CPF)
$225,000 (HDB loan)
Total $307,619.48

Frequently asked questions

What’s the downpayment for BTO?

If you’re taking an HDB loan, the BTO downpayment is 10 per cent of the purchase price. If you’re taking a bank loan, the downpayment is 25 per cent.

How long does a BTO project take to complete?

The wait time is usually three to four years. However, due to supply constraints, manpower shortages and delays, it can take around five years to complete.

How many times can you apply for BTO?

As long as you’ve not bought a new HDB, DBSS or EC, or received a CPF Housing Grant before, you can buy a BTO up to two times.

ALSO READ: Temporary Occupation Permit (TOP) - what is it?

This article was first published in 99.co.