How do you make a down payment on a house

If you have booked a completed flat, you will sign the Agreement for Lease and collect the keys to the flat from 6 months after booking the flat.

Downpayment

You have to pay the downpayment when you sign the Agreement for Lease. The amount payable depends on the housing loan to be taken.

The amount payable depends on whether you are:

• Taking an HDB housing loan
• Not taking any housing loan
• Taking a housing loan from a financial institution (FI)

Please refer to housing loan from financial institutions for more information on the loan ceilings for purchase of new flats.

• Minimum 5% cash payment
• Remaining 15% using CPF Ordinary Account savings or cash

• Minimum 10% cash payment
• Remaining 10% using CPF Ordinary Account savings or cash

For flat applications received from 16 Dec 2021 to 29 Sep 2022[1]:

• 5% using CPF Ordinary Account savings or cash

For flat applications received on or after 30 Sep 2022[2]:

• 10% using CPF Ordinary Account savings or cash

CPF housing grant recipients

You have to pay at least 5% of the purchase price using your CPF OA savings and/ or cash when the CPF housing grant that you qualify for exceeds 95% of the purchase price of the flat. Excess housing grant amount (if any) can be used to pay for any Optional Component Scheme items and the price premiums that single applicants and Singapore Citizen/ Singapore Permanent Resident households have to pay, before it is credited into your CPF Special/ Retirement and Medisave accounts.

Stamp duty and legal fees

When you sign the Agreement for Lease, you will also need to pay stamp duty on the Agreement for Lease and the legal fee(s).

Overview

Calculation of stamp duty for Agreement for Lease

Stamp duty is based on the selling price of the flat. The amount payable is calculated as such:

• First $180,000: 1%
• Next $180,000: 2%
• Next $640,000: 3%
• Remaining amount: 4%

You may also use the Stamp Duty Calculator on the Inland Revenue Authority of Singapore (IRAS) website to calculate the stamp duty payable for your flat purchase.

If applicable, you have to also pay an annual stamp duty on your Service & Conservancy Charges (S&CC) for the year. This is 0.40% of 4 times the S&CC amount for the year. This annual stamp duty is applicable if S&CC for the year plus annual rent of $1 is an amount exceeding $1,000.

Calculation of legal fee

The fees that you may need to pay are:

• Legal fee for purchase of flat from HDB based on the purchase price of the flat
• Legal fee for HDB to act for you in the loan based on the housing loan amount taken for the flat

Legal fees are calculated as such:

• First $30,000: $0.90 per $1,000
• Next $30,000: $0.72 per $1,000
• Remaining Amount: $0.60 per $1,000

Please note that the legal fee is rounded up to the next dollar, before applying GST. The minimum legal fee chargeable is $20.

Sample calculation

The following is an example of the amount payable for a 4-room flat when signing the Agreement for Lease if you take an HDB housing loan and engage HDB to act for you for the purchase of your flat.

• Purchase price of flat: $345,000

Staggered Downpayment Scheme

The Staggered Downpayment Scheme helps you to pay your downpayment in two instalments. Part of the downpayment is paid when you sign the Agreement for Lease. The remaining amount is paid at the key collection to your flat.

Eligibility conditions

2 types of flat buyers are eligible for the Staggered Downpayment Scheme.

First-timer couples

Married couples and those applying under the Fiancé/ Fiancée Scheme will qualify for the scheme if they meet the following conditions:

• Booked an uncompleted 5-room or smaller flat in any of HDB’s sales exercises
• Both are first-timer applicants, or a couple comprising a first-timer and second-timer applicant
• Applied for a flat on or before the younger applicant’s 30th birthday

Flat owners who right-size to a 3-room or smaller flat in non-mature estates

Flat owners can also qualify for the Staggered Downpayment Scheme if they:

• Booked an uncompleted 3-room or smaller flat in a non-mature estate in any HDB sales exercises
• Have not sold or completed the sale of their existing flat at the point of of their flat application

Phased downpayment under the Staggered Downpayment Scheme

• Minimum 5% cash payment
• Remaining 5% using CPF Ordinary Account savings or cash

For flat applications received before 16 Dec 2021[1]:

• 5% using CPF Ordinary Account savings or cash

For flat applications received from 16 Dec 2021 to 29 Sep 2022[2]:

• 10% using CPF Ordinary Account savings or cash

For flat applications received on or after 30 Sep 2022[3]:

• 15% using CPF Ordinary Account savings or cash

Deferred Downpayment Scheme (DDS)

DDS enables seniors who are right-sizing to defer the payment of downpayment until key collection.

DDS will help to ease the cash flow of senior flat owners whose funds are tied up in their existing flat and smoothen their right-sizing process. It will automatically be extended to flat buyers who:

• Are aged 55 years old and above
• Have booked an uncompleted 3-room or smaller flat in any HDB sales exercises
• Have not sold or completed the sale of their existing flat at the point of their flat application

With DDS, eligible flat buyers will only need to pay the stamp duty and legal fees when they sign the Agreement for Lease, from 6 months after booking a flat. They will pay the purchase price of the flat once it is ready for key collection. If the new flat application is cancelled, the usual forfeiture of 5% of the flat price will apply.

Power of Attorney (POA)

You will need a POA if you are unable to sign the Agreement for Lease or collect the keys personally.

A Power of Attorney (POA) is a legal document that allows a person ('donor') to appoint another person ('attorney') to act on his behalf and in his name on matters specified in the POA.

As a flat buyer, you have to attend these appointments personally:

• Booking of flat
• Signing of Agreement for Lease
• Collection of keys

If you are unable to attend the booking appointment, you will have to complete the authorisation form given in the invitation package and have your representative submit it to us during your flat booking appointment.

If you are unable to attend the appointment to sign the Agreement for Lease and/ or collect the keys, you will have to approach a solicitor to prepare a POA to act on your behalf in the flat purchase. 

Steps required by you and your private solicitor

The POA has to be signed by you in the presence of your solicitor. If you are already overseas, you must sign the POA in the presence of one of the following parties:

• Notary Public*
• Diplomatic or consular official from a Singapore Overseas Mission. Please visit the Ministry of Foreign Affairs’ website to find the nearest Singapore Overseas Mission

* If you are using CPF OA savings to buy a flat, the POA must be witnessed and sealed/ stamped by an official from a Singapore Overseas Mission instead. You may visit the Ministry of Foreign Affairs' website for more details on the nearest Singapore Overseas Mission.

Once the POA has been registered, you have to submit the following documents to us, at least 2 weeks before the scheduled appointment:

• Original POA + 1 photocopy
• Certified true copy from the High Court + 1 photocopy
• 2 certified true copies of the POA by an Advocate and Solicitor
• A letter from the solicitor confirming that the standard format for POA provided by HDB has been used
• Certified true copy by an Advocate and Solicitor together with the computer printout with the High Court seal. This is required in cases where POA has been registered through the Electronic Filing System

Important note:

• If you are going overseas, you are advised to obtain the POA before leaving the country
• The POA cannot be used for the signing of the following documents, which you must sign personally:
  • Application form
  • Statutory declarations (you must sign in the presence of a Commissioner of Oaths or Notary Public)
  • Any undertakings
• If you have submitted an original POA or a certified true copy of the POA from the High Court to us, it will be returned to your solicitor. This is after the Lease & Mortgage document has been registered with the Singapore Land Authority
• However, certified true copies of the POA by your solicitors will be retained by HDB

NEXT STEPS

• Key Collection

  Read about the payment required for collection of keys to a new flat, as well as information on the Contra Payment Facility and Temporary Loan Scheme.

  How do you pay down payment?

  How Can You Pay Your Cash To Close?.

  Cashier's Check. A cashier's check is certified by your bank. ... .

  Certified Check. A certified check tells the lender you have enough money in your account to cover the cost. ... .

  Wire Transfer. ... .

  Cash. ... .

  Credit Or Debit Card. ... .

  Personal Check..

  Can I borrow money for a down payment?

  Yes, you can get a loan for a down payment. There are several loan options you can explore to cover a down payment, including: Borrow Against the Equity in Another Property.

  How do you calculate the down payment on a house?

  Down payment is calculated using the formula: down payment = down payment percent times purchase price. The down payment percent needs to be converted into a decimal for this calculation.