How Much Cash and CPF You Need to Buy a Condo

The price on the listing is not the amount you need to find. Buying a private condo in Singapore takes a mix of cash and CPF spread across the downpayment, the stamp duties, and several smaller costs, and a specific slice of it has to be cash. Knowing the real upfront figure before you start saves a great deal of stress. This is how much cash and CPF you actually need to buy a condo.

The downpayment, and the cash floor

For most buyers a bank will lend up to 75 percent of the price or value, whichever is lower, so you fund the other 25 percent upfront. Of that, at least 5 percent of the price must be paid in cash. The remaining 20 percent can come from cash or your CPF Ordinary Account. On a $1.5m condo, that is $75,000 minimum in cash and a further $300,000 in cash or CPF for the downpayment alone.

Buyer's Stamp Duty

Everyone pays BSD, on the higher of price or market value, on a progressive scale that runs from 1 percent up to 6 percent for the most expensive bands. On a $1.5m purchase, BSD is in the region of $44,600. BSD can generally be paid from CPF for a completed property, or reimbursed from CPF, but it still has to be funded upfront.

ABSD, if it applies to you

If this is not your first residential property, or you are a permanent resident or foreigner, Additional Buyer's Stamp Duty applies on top. For a Singapore citizen's second property, it is 20 percent, which on $1.5m is $300,000, payable in cash or CPF upfront. For a first-time Singapore citizen buyer, ABSD is zero. This single item is often the largest upfront cost of all, so establish early whether it applies to you.

The smaller costs that still add up

• Legal or conveyancing fees, typically a few thousand dollars.
• Valuation fees for the bank's assessment.
• The option fee and exercise fee, which form part of your downpayment rather than an extra, but have to be ready at specific moments.
• Any immediate renovation or furnishing, if the unit is not move-in ready.

Where CPF helps, and where it does not

Your CPF Ordinary Account can be used for the portion of the downpayment above the 5 percent cash floor, for the monthly instalments, and towards stamp duty and legal costs, subject to CPF rules such as the Valuation Limit. What CPF cannot do is remove the cash floor or the need to have the duties funded upfront. It also cannot be stretched beyond CPF's own limits, so the exact split depends on your OA balance and the property. Confirm your usable CPF before you commit.

A worked snapshot

Take a first-time Singapore citizen buyer of a $1.5m condo with a 75 percent loan. The downpayment is $375,000, of which $75,000 must be cash and $300,000 can be cash or CPF. BSD is about $44,600. ABSD is zero. Add a few thousand in legal and valuation fees. The upfront need is roughly $420,000 plus fees, with at least $75,000 of it in hard cash. Switch the buyer to someone purchasing their second property and ABSD adds $300,000 to that figure.

A considered view

The gap between the sticker price and the cash you actually need catches many buyers off guard, and it is entirely knowable in advance. Work out your cash floor, your CPF headroom and your duties before you view a single unit, and you will shop with clarity rather than hope. If you would like, I can map your specific numbers with you so you know exactly what a purchase requires.