Can you buy a condo with no money down

To buy a condo, you’ll need to be prepared to pay at least $1 million for your property.

For 1-bedroom condos, it costs at least $1 million and up on average. For 2-bedroom condos, it is around $1.5 million and close to $2 million for 3-bedroom condos.

Are you planning to upgrade your home? Do you want to buy a condo in Singapore?

Here you’ll find a complete guide on condo downpayment and how much you need to pay.

Condo Downpayment: How Much Do I Need To Pay? (Complete Guide)

Most homeowners in Singapore would start off with a BTO. HDBs are a lot more affordable in Singapore and more manageable for first-time homeowners.

However, due to COVID-19, a lot of BTO projects have been delayed.

Couples are now looking to purchase condominiums in Singapore due to a shorter or zero waiting time. This is especially the case for homeowners who are starting their families or in a rush to move out of their parents’ place.

Condos in Singapore are more expensive than HDBs. Condos come with basic amenities such as a swimming pool, a gym and BBQ pits. How much does a condo cost? What is the condo’s downpayment? Let’s find out.

How Much Is The Downpayment For A Condo?

Wondering how much you need to prepare for your condo downpayment?

The condo downpayment in Singapore is a large percentage of the total cost of your new home. How much downpayment for condo you need to pay varies from building to building and can range from a few thousand dollars to more than $100,000.

The more expensive a condominium is, the more you’ll have to pay at closing. But it’s not uncommon for people buying condos with prices under $1 million to be required to pay 20% or more of the purchase price in cash.

However, you must consider some factors that might affect the downpayment for the condominium.

• Loan-to-Value (LTV) Limit: The LTV limit is the maximum amount of your total loan you can borrow at a given interest rate.
• Outstanding condo downpayment: If you have already paid off the condo deposit, the outstanding balance will be deducted from your total deposit when calculating how much money you need for an additional mortgage. The outstanding downpayment can be paid using your CPF.
• The minimum cash downpayment: If you do not have enough cash or savings to meet the minimum private property downpayment amount, you may need to borrow money. The minimum cash downpayment comes from the banks.
• Stamp Duty. It is levied on the sale of the property. It is a fee you pay as stamp duty for purchasing your Condo. The amount depends on how much your property costs. Remember you must pay the Stamp Duty in cash.

However, the factors might vary from one Condo to another due to the differences in pricing.

For example, let’s you have decided to purchase a condo worth $1,000,000. With the following table, let’s take a few calculations to understand it better.

Can I Use CPF + Cash For My Condo Downpayment?

Surprise! You may use your CPF for your condo downpayment.

You can use your Cash+CPF savings for your downpayment for a condo. As long as you have enough money in your CPF to cover the total purchase price of the Condo, you will be able to use both CPF and cash for your down payment.

You can even apply for a mortgage using a combination of CPF and your cash savings if you wish to do so.

For the above solution, the Condo cost was $1,000,000. The outstanding condo downpayment is $250,000 and requires you to pay $50,000, i.e. 5% of the minimum downpayment, meaning there is a balance of $200,000. With the remaining balance, you can pay using your CPF OA savings. The case study is the same in resale condo downpayment.

You must, however, ensure that you have sufficient funds in your CPF account to cover the remaining balance of the condo unit. If this is not possible, then it would be advisable for you to look at other alternatives like paying in cash.

How Much Stamp Duty (BSD / ABSD) Do I Need To Pay?

The amount of BSD or ABSD you need to pay depends on the type of property you are buying and the property’s value.

If you buy a home, the BSD or ABSD can be as high as 1% of the purchase price. The BSD will apply only if you are purchasing your first home, but it may also apply in certain circumstances if you are purchasing additional properties.

For example, if you have bought a house for $500,000 and then sold it for $1 million, your BSD would be $5,000 ($500,000 x 1%). If this was your first home purchase and you were paying down a mortgage with no other debt, then there would be no ABSD due upon sale.

However, based on our case study above, the unit is worth $1,000,000. For Singapore citizens, you will be required to pay $24,600 for Buyer’s Stamp Duty, which you can pay using your CPF. For permanent residents, there is an additional 5% tax levied and 30% for foreigners meaning you will pay $74,600 and $324,600, respectively.

Above is a screenshot from IRAS after 20 Feb 2018. 

How Much Cash Do I Need For A Condo Downpayment?

With all these factors in mind, we come to an end on the total Condo downpayment. The higher the price of your new home, the more money you will need as a down payment.

If your credit LTV ratio is high, it may be harder to get approved for financing and an affordable mortgage rate on top of everything else. The minimum downpayment for Condo for any condo is mostly 5%. You should always take that into account.

With the above case study, we evaluated our Condo downpayment based on a condo worth $1,000,000. The total downpayment for Singaporeans is $274,600, in addition to CPF and cash in hand. For permanent residents is $324,600, and we saw this addition due to Buyer’s Stamp Duty applied of 5% to permanent residents.

With foreigners, the total condo downpayment is $574,600 in addition to cash and CPF.

Condo Cost In Singapore

Opinions about downpayment for condo purchases vary from source to source. You need to consult both the bank and some real estate agents to come up with a personal ideal amount and payment method.

Remember that your downpayment is the initial deposit needed, not the total price of a condo, especially if it’s new construction.

For better financial planning, you need to ensure that you’re debt-free. To apply for a fast cash loan and receive your money in minutes, click here!

With Credit 21, you get to skip all of those troublesome procedures!

What is the best down payment for a condo?

Can I get pre approved with no down payment?

What happens if you don't have enough money for a downpayment on a house?

How do you know if I can afford a condo?