How to Buy a New Launch Condos

Step 1: Start your financial planning

Check the rates and property purchase price you can comfortably afford based on your income, age and loan commitments..

Take note that if you have any outstanding home loans that you haven’t paid off, and you are still looking to buy your second property, the LTV limit is 45%. If you are buying your third property, the LTV limit is 35%.

For owners who are using CPF for an existing property, they must set aside half of the prevailing CPF Minimum Sum before they can use the excess savings in their Ordinary Account for the second or subsequent property. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet half of the prevailing Minimum Sum.

As the CPF Minimum Sum will be raised in July each year, the amount you need to set aside will be adjusted accordingly.

In this step, it is best to obtain an approval-in-principle (AIP) from a bank.

Singapore property launches have special lists to assist you with comparing home loan packages across different banks. We’ll find you the best rate tailored to your needs, free of charge!

Step 2: Shortlist new launch condos and make appointments to visit show flats

Before being swayed by the developer’s buzz-worthy marketing strategy, here’s what you should look out for to determine if you’re making the right decision:

1. Location (accessibility and amenities)

2. Unit size

3. Facilities

4. Interior of the condo

5. Capital appreciation (based on upcoming developments)

Once you’ve shortlisted your favorites, it’s time to look out for high-quality agents to assist you with your purchase. Currently, due to the COVID-19 pandemic, appointments are mandatory as the government has implemented tighter social-distancing measures.

What’s the best part of setting an appointment with one Singapore property launch?

We can assist you with the following at $0 agent fee:

• Fully guided tour

• Exclusive and unbiased insights

• Research and compare available developments

• Facilitate the entire buying process

Step 3: Pay the booking fee for your new launch condo unit

When buying a new launch condo unit in Singapore, you need to pay 5% in cash upon booking and signing the Option to Purchase (OTP) to officially book the unit. This means you’ll forfeit a portion of your booking fee (usually 25%) if you abort the purchase.

When you have a copy of the OTP, you can then finalize your loan for the new launch condos in singapore. The bank from which you are taking the loan will issue you the Letter of Offer – the official name for the document containing the terms of the bank that is offering you a loan.

Next, you’ll also need to appoint a solicitor to act for you in the purchase and take care of the conveyancing matters.

Step 4: Sign the Sales & Purchase Agreement

• Within two weeks after receiving the OTP, the developer will deliver the Sales & Purchase Agreement (S&P).

• Within three weeks after receiving the S&P, you’ll have to sign the S&P and exercise the OTP.

• Within eight weeks from signing OTP, you’ll have to pay the rest of the 15% (cash or CPF) down payment (aka exercise fee).