BUYERS AND INVESTORS
Purchasing a property in Singapore is no mean feat. There are many things to take note of so as to ensure a smooth and efficient process.
Whether you are looking to purchase a property for homestay or investment, there are many other things to consider. Find out more below!
We have summed up the buying process into 5 steps:
1. Identifying & negotiating for the property that you will like to purchase
2. Understanding the requirements and preparing of funds or funding methods
3. Securing a housing loan with competitive interest rates for better savings
4. Settling of paperwork and procedure (paying down payment & stamp duty)
5. Adhering to payment schedules and collection of key to property
Let us help you in every step. Reach out to us today!
Additional Buyer Stamp Duty: If you existingly own a property, you will be required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD). ABSD and BSD are computed on the purchase price as stated in the dutiable document or the market value of the property (whichever is the higher amount).
Seller Stamp Duty: SSD is payable on all residential properties and residential lands that are acquired on or after 20 Feb 2010 and disposed of within the holding period.
Especially for big ticket items like property, there is a restriction on how much loan you can take on to finance your property. This is where the Total Debt Servicing Ratio (TDSR)*, as well as the Mortgage Servicing Ratio (MSR)* comes into place.
*TDSR is a debt servicing measure that bank/ financial institution used to determine if the potential borrower is overly geared with debts.
**MSR is a limit imposed by the MAS on how much money you can borrow when you take out a loan to buy HDB property or an EC.
How to compute TDSR?
Based on the newest measure, TDSR should not be more than 60%
Monthly Total Debt Obligations
_________________________ < 60%
Gross Monthly Income.
How to compute MSR?
Under the MSR, a maximum of 30% of your gross monthly income can be used to repay your loan.
Let’s say your monthly income is $5,000.
30% x $5,000 = $1,500