Your 9 Steps to Buying EC in Singapore
For any Executive Condominium (EC) sites awarded from 12 Jan 2013 onwards, a developer can only start marketing activities and sales of EC project 15 months after the award or after the physical completion of the foundation work, whichever is earlier.
Once approval is obtained, the developer will appoint selected marketing agencies to help advertise and promote the EC project. At this time, project information such as site plan and project briefs will be released to the marketing agents.
The following are the 9 simple steps to buying Executive Condominium (EC) in Singapore.
Step 1 – Shopping for an EC
If you are considering buying an EC in a neighborhood that you like, the first place you can start searching is right here at our website. You will get a list of all Executive Condominiums on sale as well as future launches of EC in Sales Launches for Executive Condominium webpage, .
When you have discussed with your family and you are keen to learn more about your preferred EC, we can arrange for you to have a visit to the showflat (when available) or meet you to go over the project details with you. Contact us here when convenient.
We are available to present any Executive Condo projects in Singapore.
In a typical EC sales process, the procedures are broken into the following 8 parts:
- Financing Options
- Filing manual application form
- e-Application submission period
- Ballot results
- Price list release
- Booking Day
- The next steps...
We can meet you and your family to discuss the projects in more details. We will explain the process, important details you need to comply and financial considerations prior to purchase. Our job is to ensure your buying journey is made easy for you.
Step 2 – Eligibility to buy EC
One key component in the entire EC buying process is the Eligibility. The following is a checklist that you must meet to consider your eligibility
- Must be above 21 years old
- Must form a family nucleus with at least 1 Singapore Citizen plus another Singapore Citizen or Permanent Resident
- Combined household income does not exceed S$14,000 $16,000 per month.
- None of the applicants have bought directly from HDB for two of the previous HDB properties, i.e. BTO, DBSS, EC
- None of the applicants have sold a private residential property within the last 30 months.
- None of the applicants owned any private residential properties at the time of application.
If you need further clarification, please feel free to consult us. We can provide you more details on eligibility to buy new EC when we understand your overall situation better.
Once confirmed you are eligible, the next step is to seek out your financing options.
Step 3 – Financing Options
Please take note HDB does not provide housing loan to EC buyers. EC buyers need to obtain loan from banks or financial institutions.
If you are eligible to obtain 80% 75% loan amount, the initial 5% downpayment is cash, the next 20% payment is a combination of cash and/or funds from CPF.
As per MAS regulation, the 5% of the initial 20% downpayment must be in the form of cash only. The balance 15% can be in the form of cash and/or CPF.
If you qualify for CPF Housing Grant, the funds in the form of CPF monies can be used. We can also assist you to determine if you are qualified for CPF Housing Grant. If both you and your spouse qualifies, you will stand to gain an amount of up to S$30,000 for the purchase of your EC.
In order to ascertain if you are eligible to get 75% loan, you need to be aware of MSR or Mortgage Servicing Ratio that is peg to 30% of your combined total income. Please check with your bankers for further details.
If you need an estimation of how much downpayment and its related cost, you can use our Progressive Payment Schedule calculator to get an idea.
Another financial consideration is Resale Levy. Resale Levy, according to HDB, is meant to reduce the subsidy on the second subsidized flat so as to maintain a fair allocation of public housing subsidies between first and second-timer citizen families.
When buying an EC, if you are a HDB “second-timer”, there is a resale levy that you need to pay if the EC land sale was on or after 9 December 2013. But, if the EC land sale is before 9 December 2013, the EC buyer need not pay resale levy. This can potentially save the EC Buyer of up to S$50,000/=.
For a list of Executive Condominiums that requires Resale Levy and non-Resale Levy, you can find them here.
Once you have gotten the above financial issues sorted out, you are ready to set your heart and mind to select your preferred EC.
Step 4 – Register your Interest
In the past, most potential EC buyers have only the project model to view before making the decision to submit the e-Application. The viewing of the show flat unit can only be done after the e-Application submission is closed.
However, some developers have now changed their approach in launching their EC. They finished the construction of the show flat unit early, so you can view, be enticed and to help you make better decisions.
Once you are satisfied with what you see, you can fill-up the e-Application form with your personal details, contact number, declaration of income and an authorization for us to submit your application on your behalf. You will need to provide a copy of NRIC of each of the occupiers and the income statement.
At any point in time, if you need any information, please feel free to get in touch with us via our contact us page
Step 5 – e-Application Submission
With the manual e-Application form and Authorization forms ready, we will submit your application electronically when the e-Apps submission period opens. The e-Application submission period is when the system is ready to accept the application from potential buyers. The developer will verify your eligibility one more time. With the e-Apps submission, the system will capture your data and produces a ballot number for use at a later date. Please note e-Application submission is FREE.
Step 6 – Notification of e-Apps Result
The system will collect all the e-Apps until the end of e-Apps period. The e-Apps period is usually opened for slightly more than a week.
The ballot numbers are part of a queue system to ensure an orderly selection of EC apartment units. When the ballot numbers are assigned to a particular buyer, the date and time slot is also given. They are the appointment date for you to visit the show flat, to select your unit and to make the purchase.
The developer will announced the results of the e-Apps after they have processed all the submitted applications.
Step 7 – Price List Release
Once the ballot numbers are announced, the price list will be released. We will keep in touch very closely with you and keep you updated on the pricing structure. We will help you identify the units that fit your requirement and strategise your unit purchase.
Step 8 – Booking Day of EC
The Booking Day is your appointment day to finally select and purchase your choice unit. At the appointed time, you enter the show flat and make a selection of your unit. Up to this point, you can still decide NOT to proceed without getting penalized if your preferred unit is no longer available.
Once you confirm your selected unit, you will need to present a cheque payable to the developer project account with an amount equivalent to 5% of the selling price. This is the booking fee.
A set of “PDI” documents will be given to you and you will need to initial on every page on the forms. This document is essentially all the floor plans, site plans, rules and regulations, offered items, changes to the standard sales & purchase agreement, etc, that are related to your selected unit. You are required to read and agreed to those items. If we are the sales consultant who helps secure the unit, we will explain in detail what the documents are about.
After signing of the PDI documents, a copy of the “Option to Purchase” (OTP) will be issued by the developer. The OTP is an offer document from the developer allowing the buyer to buy the apartment unit at the offered price. The buyer now will have to exercise the OTP and sign the S&P to make the sales binding. Failure to exercise, the developer has the right to forfeit 25% of the 5% booking fee paid earlier.
Step 9 – What’s next?
What do you do next after you received your Option To Purchase from the developer? You should call up your banker soonest possible and get the Letter of Offer from the bank. Apart from the usual documents required by the bank, they will now need a copy of your OTP.
Depending on the bank that you select, a lawyer will be appointed and they will set aside a day for you to exercise the OTP and signing of the Sales & Purchase Agreement. Thereafter, they will proceed with the conveyancing work.
If you own a HDB flat currently, you have to make plans to sell off your current HDB when the EC is about to receive the Temporary Occupation Permit (TOP). Once you received the keys to your new EC, you are required to sell the HDB within 6 months.
Summary of buying EC in Singapore
Are the above steps over-whelming for you to understand? Do not be intimidated by the process. This is where our experiences and knowledge comes in handy to help buyers who are not familiar with the sales process. Here is the best part…..you do NOT pay us commission to do all the above work for you. Isn’t this a good deal?
** Disclaimer: Information above are for your reference only. They are subject to change by the relevant authorities without prior notice. Please refer to authorised agent for confirmation.
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