Resale EC Payment Scheme
When you purchase a Resale EC in Singapore, it is like buying a private residential property in the open/resale market. There is only one payment scheme for you.
When it comes to buying a Resale EC, the only option that EC buyers have is to apply for a bank loan. For a bank loan, EC buyers will need to prepare at least 25% downpayment, which can be paid in cash or CPF OA savings (minimum 5% cash outlay).
Mortgage Servicing Ratio (MSR) doesn’t apply to Resale EC purchase. It is the Total Debt Servicing Ratio (TDSR) that limit the eligible loan amount the banks can lend you – the monthly housing loan repayments cannot exceed 60% of Resale EC buyers’ gross incomes. Therefore, when you compare the New Launch EC and Resale EC, Resale EC buyers get to enjoy higher eligible loan amount.
You may refer to the following table, to find out more about the Executive Condo (EC) Timeline (different stages, the percentage of the payment and the payment mode for each stage).
Resale Executive Condo (EC) Timeline
|Stage||%||Description||When to Get Ready||Payment Mode|
|1st||1%||Booking Fee||Day 1||Cash|
|Buyer to engage solicitor (~ $3000)
Buyer to select the Mortgage Loan (Stamp fee ~$500)
Buyer to exercise Option at solicitor’s law firm
Option Exercise fee is usually 4% or 9% depending on the agreement between seller and buyer
|Within two weeks from Day 1||Cash|
|Buyer’s Stamp Duty||Within two weeks upon signing S&P||Cash or CPF OA|
|Additional Buyer’s Stamp Duty||Within two weeks upon signing S&P||Cash or CPF OA|
|2nd||20%||Completion of Sales & Purchase
at solicitor’s law firm
|Within 8-10-12 weeks from exercising Option||Cash or CPF OA|
Frequently Asked Questions (FAQ)
- HDB loans are not applicable for Resale EC purchase. When it comes to buying a Resale Executive Condo, the only option that EC buyers have is to apply for a bank loan.
- For the Resale EC purchase, the 25% downpayment, the minimum cash outlay is 5%. The remaining 20% can be paid by cash or from EC buyers’ CPF Ordinary Account (OA).
- For the Resale EC purchase, both legal fees and stamp duties can be paid from your CPF Ordinary Account (OA). This can be in the form of reimbursement, meaning that you first pay up in cash, and claim back the amount paid at a later date from your CPF.
- EC buyers can utilise their CPF Ordinary Account (OA) savings to service the monthly payments of the bank loan instalments.
- Upon the selling of the EC, you will need to return the CPF monies used back to your CPF Ordinary Account (OA), with the 2.5% interest rate.