There are some very important financial tips to keep in mind before you visit any new launch showflat so that you save yourself some time which you can invest in carrying out more researches.

Gone are the days when only your monthly income was taken into consideration and not any other properties you possessed while purchasing bigger and costly entities.

We have come up with a fair list of things which you should do before visiting a showflat of your dreams. They can be explained as below:

1) Amount of CPF available to you for purchasing property

First time buyers of a property have an ability to use their entire Ordinary Account(OA) funds.

While buying second property, you will need to make sure that you have fulfilled minimum amount of $75,000 in Ordinary-Account(OA) & Special-Account(SA) in total.

2) Home loan you are eligible for

This is the most driving factor of all. Approval-in-principle(AIP) is the most important requirement for you to accomplish your property purchase.

Above all, the beauty of AIP is that it comes completely free of charge and banks take about three business days to process this request.

For this, you will need to produce below documents:

– Application form.

– Credit facilities Declaration-form.

– NRIC copy or the passports of all purchasers.

– Credit-card statements that have been recently utilized by you.

– Confirming your HDB status by presenting a HDB page.

– For the employed, you may have to present the last 3 months paychecks as well as IRAS Tax-Assessment Return.

– Employed applicants also need to submit the last 12 months CPF-contribution.

– For the employed as well as the self-employed, you will have to present the last 1 year IRAS Tax-Assessment Return.

3) ABSD bracket you sit in

Second to consider after AIP is to know which Additional-Buyer Stamp-Duty (ABSD) bracket you are currently in.

For natives, initial property will be totally free of ABSD. But, taxes of 7% and 10% will be levied on second and third property purchase prices respectively.

Permanent Residents(PRs) will have to pay 5% tax on their first property purchase. And, 10% tax will be imposed on the property transacted price for their property purchases.

Other than those like Foreigners will have to pay 15% tax on each property price when they purchase their property.

4) Workflow for Normal-Progressive Payment-Scheme

This is a standard payment scheme utilized in most of the newly launched showflat with show suites and show gallery.

Once you have selected your unit choice:

– You will have to pay 5% in cash into the project account of the developer in exchange of Option-To-Purchase(OTP).

– You will receive the Sales-&-Purchase Agreement(S&P) within some 2 weeks from the developer directly to your address.

– You will be given 3 weeks to exercise the contract after the receipt of the S&P. 75% of the Option Fee will be refunded to your account in case you fail to exercise the contract.

– The Stamp-Duty & ABSD will be paid within 14 days from the date of exercise.

– Remaining 15% of the down payment will be paid in next 8 weeks from the OTP date.

5) Figuring out working of Balloting system

There is a preview period of one to two weeks that is allocated to preview the showflat well before the launch of that new showflat.

Registering there makes you eligible to ballot for units before its public launch and also offers early bird discounts if a buyer purchases during the launch day.


All these five points play a very important role in determining what type of showflat is most suitable for your budget and how you should prepare and understand them yourself so that there are no hidden charges or guidelines at the time of your property purchase!