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Costly Home Buying Mistakes in Singapore: Cash, Timing, Tax

Nine costly mistakes Singapore home buyers still make in 2026, from short cash budgets and ABSD timing to the 4-year SSD, with worked examples in S$.

By Propwise EditorialUpdated 5 October 20268 min read

The mistakes that cost Singapore home buyers the most in 2026 are rarely about taste. They are about cash, timing and tax: committing before the loan is confirmed, borrowing to the limit while rates are low, and owning two homes for one day too long. Almost all of them can be avoided with a calculator and a week of patience.

At a glance

  • Budget for more than the downpayment. A S$1.5 million first home needs about S$420,000 of your own money before legal fees and renovation, and at least S$75,000 of it must be cash.
  • Get your loan approval in principle before you pay an option fee or booking fee. If you walk away, you lose money.
  • Test your mortgage at 3.5–4%, not today’s rates. Packages are about 1.5–2.2% now, but SORA alone was above 3.5% in 2023.
  • If you will own two homes, even for a short time, check ABSD (20% for a citizen’s second home) and the 4-year Seller’s Stamp Duty before you sign.
  • Inspect for defects within the 12-month defects liability period on a new home. A resale home comes “as is”.

Mistake 1: budgeting for the downpayment only

Most first-time buyers know the loan covers 75% at most. Fewer add up everything else. Say you are a Singapore Citizen buying your first home, a S$1.5 million condo, with a bank loan:

ItemAmountHow you can pay
Minimum cash downpayment (5%)S$75,000Cash only
Rest of the downpayment (20%)S$300,000Cash or CPF Ordinary Account (OA)
Buyer’s Stamp DutyS$44,600Due within 14 days; CPF OA can be used
ABSD (first home, citizen)S$0—
Total before fees and renovationS$419,600

The loan limits come from MAS, and the BSD rates (1% rising to 6% above S$3 million) and the 14-day deadline come from IRAS. CPF Board lets you use OA savings for the downpayment, stamp duty and legal fees, but it does not pay the minimum 5% cash.

Then there is the valuation gap. Banks lend on the lower of the price or the valuation, and CPF usage is capped the same way unless you have set aside your Basic Retirement Sum. If you pay S$1.5 million for a unit valued at S$1.45 million, the loan falls to S$1,087,500 and your share rises by S$37,500.

After you move in, the bills continue: maintenance fees, renovation and property tax. Property tax is modest for an owner-occupier (S$960 a year on an annual value of S$36,000, before rebates). It rises to S$4,800 if you move out and rent the unit out.

Mistake 2: committing before the loan is confirmed

An option to purchase (OTP) is cheap to get and expensive to drop. On a private resale home, you usually pay about 1% for the option. Under the standard CEA template you get two weeks to exercise it, and you forfeit the option money if you do not. On a new launch you pay a booking fee of 5–10%. According to URA’s home buyers’ guide, the developer may keep 25% of that fee if you do not exercise. On a S$1.5 million unit with a 5% booking fee, that is S$18,750.

So get a bank’s approval in principle (IPA) first, ideally with an indicative valuation. For an HDB flat, you need a valid HDB Flat Eligibility (HFE) letter before you take an OTP. Between the IPA and the actual loan, do not change jobs, take a car loan or miss card payments. Your total debt servicing ratio (TDSR) is measured on the day the bank decides.

Compare packages yourself or through a broker. The seller’s agent is paid by the seller, and the developer’s agents represent the developer. Under CEA rules, an agent cannot collect commission from both sides of a deal, and there are no fixed commission rates. Everything is negotiable, so put it in writing.

Private resale: from option to keys takes about 10 to 15 weeksTypical market terms, in weeks from the day the option is granted. The parties may agree others.
Week 02468101214Option periodCompletion period: 8 weeksup to 12 weeks
  1. 1Week 0Option grantedYou pay the option fee, usually 1% of the price. The seller signs the option.
  2. 2Weeks 0 to 2Option periodOften 14 days, up to about 3 weeks. Arrange the loan, hire a lawyer and run the legal checks.
  3. 3End of the optionYou exerciseSign the acceptance and pay about 4% more. Fee and payment together are the 5% deposit. The sale is now binding.
  4. 4Within 14 days of signingStamp dutyIRAS charges no penalty if you stamp within 14 days. For an HDB flat, count from HDB’s approval letter.
  5. 58 to 12 weeks after exerciseCompletion periodLoan processing, CPF steps and legal checks, handled by the lawyers.
  6. 6About week 10 to 15CompletionYou pay the balance, the title transfers and you collect the keys.

Schematic. Terms from IRB Law LLP (updated 20 January 2026) and EdgeProp; stamp duty timing from IRAS. HDB resale and new launches use different periods, set out in the table above.

Mistake 3: borrowing to the limit because rates are low

Three-month compounded SORA was about 1.24% on 14 Oct 2026. Bank packages rose after the US Federal Reserve raised rates on 16 September 2026. Floating packages are now about 1.5–1.8% and fixed packages about 2.0–2.2% (The Business Times, 2 October 2026; CNA, 18 September 2026). In 2023, SORA was above 3.5%. Take a S$1,125,000 loan over 30 years (75% of S$1.5 million):

Interest rateMonthly instalment
1.8% (top of the floating range, Oct 2026)S$4,047
2.1% (a typical fixed package, Oct 2026)S$4,215
3.8% (2023-style rates)S$5,242
4.0% (the MAS stress-test rate)S$5,371

If rates return to 2023 levels, that is S$1,195 a month more than at 1.8%. The TDSR rule already tests you at 4%: all your debt repayments must stay within 55% of gross income. This loan needs at least S$9,765 a month if you have no other debts. But passing TDSR is the legal maximum, not a comfortable level. Run your own numbers with the Propwise mortgage calculator, and read our guide to TDSR and the 3-3-5 affordability rule.

Singapore and US interest rates since 2019Percent a year. Weekly values: 3-month compounded SORA and the US effective federal funds rate.
  • 3-month compounded SORA (Singapore)
  • US federal funds rate (effective)
Singapore and US interest rates since 2019. Both rates fell to near zero in 2020 and 2021, then rose sharply in 2022 and 2023. SORA peaked near 3.7 per cent and has since fallen to about 1.2 per cent, while the US rate stays above 3.5 per cent.0.0%1.0%2.0%3.0%4.0%5.0%2020202120222023202420252026Fed 3.88%SORA 1.24%Singapore and US interest rates since 2019. Both rates fell to near zero in 2020 and 2021, then rose sharply in 2022 and 2023. SORA peaked near 3.7 per cent and has since fallen to about 1.2 per cent, while the US rate stays above 3.5 per cent.0.0%1.0%2.0%3.0%4.0%5.0%2020202120222023202420252026

Latest: SORA 1.24% (14 Oct 2026); Fed 3.88% (13 Oct 2026).

SORA is the benchmark for floating-rate home loans in Singapore. The US rate is shown for context: it moves SORA only indirectly, through the Singapore dollar and bank funding costs.

Table view
Period3-month compounded SORA (Singapore)US federal funds rate (effective)
Oct 20261.24%3.88%
Sep 20261.23%3.88%
Aug 20261.18%3.63%
Jul 20261.14%3.63%
Jun 20261.08%3.63%
May 20261.06%3.62%
Apr 20261.03%3.64%
Mar 20261.07%3.64%
Feb 20261.12%3.64%
Jan 20261.15%3.64%
Dec 20251.19%3.64%
Nov 20251.25%3.89%
Oct 20251.32%4.11%
Sep 20251.46%4.09%
Aug 20251.56%4.33%
Jul 20251.86%4.33%
Jun 20252.06%4.33%
May 20252.27%4.33%
Apr 20252.40%4.33%
Mar 20252.55%4.33%
Feb 20252.73%4.33%
Jan 20252.90%4.33%
Dec 20243.08%4.33%
Nov 20243.21%4.58%
Oct 20243.39%4.83%
Sep 20243.49%4.83%
Aug 20243.57%5.33%
Jul 20243.64%5.33%
Jun 20243.63%5.33%
May 20243.66%5.33%
Apr 20243.65%5.33%
Mar 20243.68%5.33%
Feb 20243.64%5.33%
Jan 20243.66%5.33%
Dec 20233.70%5.33%
Nov 20233.75%5.33%
Oct 20233.75%5.33%
Sep 20233.70%5.33%
Aug 20233.70%5.33%
Jul 20233.68%5.33%
Jun 20233.65%5.07%
May 20233.61%5.08%
Apr 20233.61%4.83%
Mar 20233.58%4.83%
Feb 20233.23%4.58%
Jan 20233.12%4.33%
Dec 20223.03%4.33%
Nov 20222.87%3.83%
Oct 20222.45%3.08%
Sep 20222.07%3.08%
Aug 20221.55%2.33%
Jul 20221.27%2.32%
Jun 20220.72%1.58%
May 20220.52%0.83%
Apr 20220.32%0.33%
Mar 20220.27%0.33%
Feb 20220.25%0.08%
Jan 20220.20%0.08%
Dec 20210.19%0.08%
Nov 20210.16%0.08%
Oct 20210.16%0.07%
Sep 20210.13%0.08%
Aug 20210.13%0.08%
Jul 20210.13%0.10%
Jun 20210.14%0.10%
May 20210.17%0.05%
Apr 20210.19%0.07%
Mar 20210.23%0.07%
Feb 20210.20%0.07%
Jan 20210.17%0.07%
Dec 20200.17%0.09%
Nov 20200.12%0.08%
Oct 20200.12%0.09%
Sep 20200.10%0.09%
Aug 20200.10%0.09%
Jul 20200.08%0.09%
Jun 20200.14%0.08%
May 20200.27%0.05%
Apr 20200.53%0.05%
Mar 20200.90%0.10%
Feb 20201.14%1.58%
Jan 20201.20%1.55%
Dec 20191.27%1.55%
Nov 20191.31%1.55%
Oct 20191.46%1.83%
Sep 20191.53%1.83%
Aug 20191.59%2.12%
Jul 20191.67%2.40%
Jun 20191.72%2.40%
May 20191.68%2.38%
Apr 20191.62%2.44%
Mar 20191.54%2.43%
Feb 20191.59%2.40%
Jan 20191.52%2.40%

Source: MAS, FRED. Data to 14 Oct 2026.

Mistake 4: getting the ABSD timing wrong when you upgrade

ABSD depends on what you own on the day you buy. A citizen pays 0% on a first home, 20% on a second and 30% on a third. Permanent residents pay 5% / 30% / 35%. Joint buyers pay the highest rate among them, on the whole price.

Buyer1st home2nd home3rd home and later
Singapore citizen0%20%30%
Singapore permanent resident5%30%35%
Foreigner60% on every purchase
Entity (company, partnership and similar)65%
Trust65%
Housing developer40% (35% can be remitted if the project is completed and sold in time)
Additional Buyer’s Stamp Duty rates for residential property in force from 27 Apr 2023. Source: iras.gov.sg, checked 4 Oct 2026. Rule history

Upgraders get caught in three ways:

  • Singles who buy before selling. A single citizen who still owns an HDB flat and buys a S$1.5 million condo pays S$300,000 in ABSD, with no refund. (The only exception is citizens aged 55 and above buying a lower-value home.) To avoid it, contract the sale of the first home before you accept the OTP on the second.
  • Married couples who miss the deadline. A couple with at least one citizen pays the ABSD upfront, then gets it refunded only if they sell the first home within six months. For a completed home, the six months run from the purchase. For a new launch, they run from TOP. There are no extensions.
  • Owners of HDB flats or ECs who have not met the minimum occupation period (MOP). You must meet the MOP before you can buy private property at all. For Plus and Prime flats, the MOP is 10 years, not 5.
ABSD refund for a qualifying couple: two 6-month windowsCompleted second home bought by a married couple that includes a Singapore citizen.
Month 024681012Buy the second home: ABSD paidSell the first home: within 6 monthsApply: 6 months from the saleLatest case: sold in month 6Example: sold in month 4
  1. 1Month 0Buy the second homeYou pay ABSD at the second-home rate with the stamp duty. It is 20% for a citizen, so S$200,000 on each S$1,000,000.
  2. 2Within 6 months of buyingSell the first homeThe sale date counts, not completion. If the second home is uncompleted, the 6 months run from its TOP or CSC date if that is earlier.
  3. 3Within 6 months of the saleClaim the refundDeclare the plan in the e-Stamping form and IRAS refunds automatically. Otherwise apply on myTax.
  4. 4About 6 weeks after stampingRefund arrivesIRAS says an automatic refund comes within 6 weeks of stamping the first home’s sale (purchase forms from 2 July 2023).
  5. 5After month 6No extensionIRAS says it will not extend the 6 months. The ABSD stays paid.

Schematic. Terms from the IRAS page on ABSD remission for a married couple (updated 13 August 2026). The senior concession for single citizens has its own conditions, set out in the text.

“Decoupling” or 99-to-1 schemes are not automatically illegal. But IRAS can disregard an arrangement made to reduce ABSD, with a 50% surcharge. By April 2024 it had found avoidance in 166 of 187 cases it reviewed. Get specific legal advice before you try one.

Mistake 5: forgetting the four-year SSD

For homes bought from 4 July 2025, Seller’s Stamp Duty applies if you sell within four years: 16% in year one, then 12%, 8% and 4%. Sell that S$1.5 million condo 18 months after you buy it and you owe S$180,000. Buyers rarely plan to sell early. But job moves, a second child or a divorce do happen. If there is a real chance you will move within four years, renting may cost less. Our rent-or-buy guide shows the maths.

Seller's Stamp Duty on a S$1.5m home falls each year you hold itHomes bought on or after 4 July 2025. Duty is charged on the higher of the selling price and the market value.
Sold within 1 yearS$240,00016%Sold in year 2S$180,00012%Sold in year 3S$120,0008%Sold in year 4S$60,0004%Sold after 4 yearsS$0no SSD

Propwise calculation, as at 6 October 2026, using S$1,500,000 as the selling price. Rates: MAS, 3 July 2025 and the IRAS SSD page.

Mistake 6: buying the showflat, not the unit

URA’s guide spells out what showflats can and cannot show. Wallpaper, lighting, curtains and loose appliances are often decoration only. Some walls may be left out “to facilitate visitor movement”. The unit you buy may also differ from the show unit. Read the floor-area breakdown: the strata area you pay for can include air-con ledges and void space. Check how parking lots are allocated if there are fewer lots than units. Ask for any freebies (a washing machine, a cooker) in writing. And a “blank cheque” given at a launch to show interest is not a commitment to buy. Ask for it back if you do not go ahead.

Mistake 7: following the crowd

Full car parks and “last few units” talk at a launch are marketing, not market data. Wait 48 hours before you commit. Then check what similar units actually sold for on URA’s private transaction search, or HDB resale prices on data.gov.sg.

The 2026 market gives you no reason to panic-buy. Private prices moved a modest +1.4% in Q3 2026 (flash estimate), and HDB resale prices dipped for a third straight quarter. The 2026 Government Land Sales programme confirms 9,320 private homes, more than 50% above the 10-year average.

Private homes and HDB flats: price indices since 1999Both indices equal 100 in Q1 2009, so one axis compares them fairly. Quarterly.
  • Private homes (URA price index)
  • HDB resale flats (HDB Resale Price Index)
  • Policy measures (select one for details)
Private homes and HDB flats: price indices since 1999. Two lines rise from 1999. Private home prices swing more, with falls around 2008 to 2009 and 2013 to 2017, and rise faster after 2020. HDB resale prices climb steadily and flatten in 2025 and 2026.100.0150.0200.0200020052010201520202025Private 219.4HDB 202.82001-10-12: Second off-budget package, October 2001: property tax rebate, stamp duty cut, gains tax removed, land sales eased2005-07-19: Property policy review, July 2005: LTV limit raised to 90%, CPF housing rules eased, foreign ownership rules eased2009-09-14: Interest-only loans and Interest Absorption Scheme disallowed, September 20092010-02-19: Seller's Stamp Duty introduced and LTV limit cut to 80%, February 20102010-08-30: Property cooling measures, August 20102010-08-30: HDB measures after National Day Rally 2010: DBSS income ceiling, 5-year MOP for non-subsidised flats2011-01-13: Property cooling measures, January 20112011-12-07: Additional Buyer's Stamp Duty introduced, December 20112012-10-05: Maximum loan tenure of 35 years and tighter LTV limits, October 20122013-01-11: Property cooling measures, January 20132013-06-28: MAS introduces the Total Debt Servicing Ratio (TDSR) framework2013-08-27: HDB loan and resale measures, August 20132017-03-10: SSD holding period cut to 3 years; TDSR relaxed for equity withdrawal2018-02-19: Budget 2018: top BSD rate raised to 4% above S$1m2018-02-19: Budget 2018: Proximity Housing Grant enhanced2018-07-05: Property cooling measures, July 2018: higher ABSD and lower LTV limits2021-12-15: Property cooling measures, December 2021: higher ABSD, TDSR 55%, HDB loan LTV 85%2022-09-29: Property measures, September 2022: higher TDSR and MSR rate floor, HDB loan LTV 80%, 15-month wait-out2023-02-14: Buyer's Stamp Duty raised for higher-value properties, Budget 20232023-02-14: CPF Housing Grant raised for first-time resale buyers, Budget 20232023-04-26: ABSD rates raised, April 20232024-08-19: HDB loan LTV cut to 75% and Enhanced CPF Housing Grant raised2025-07-03: Seller's Stamp Duty holding period back to four years, rates raised by 4 ppPrivate homes and HDB flats: price indices since 1999. Two lines rise from 1999. Private home prices swing more, with falls around 2008 to 2009 and 2013 to 2017, and rise faster after 2020. HDB resale prices climb steadily and flatten in 2025 and 2026.100.0150.0200.02000200520102015202020252001-10-12: Second off-budget package, October 2001: property tax rebate, stamp duty cut, gains tax removed, land sales eased2005-07-19: Property policy review, July 2005: LTV limit raised to 90%, CPF housing rules eased, foreign ownership rules eased2009-09-14: Interest-only loans and Interest Absorption Scheme disallowed, September 20092010-02-19: Seller's Stamp Duty introduced and LTV limit cut to 80%, February 20102010-08-30: Property cooling measures, August 20102010-08-30: HDB measures after National Day Rally 2010: DBSS income ceiling, 5-year MOP for non-subsidised flats2011-01-13: Property cooling measures, January 20112011-12-07: Additional Buyer's Stamp Duty introduced, December 20112012-10-05: Maximum loan tenure of 35 years and tighter LTV limits, October 20122013-01-11: Property cooling measures, January 20132013-06-28: MAS introduces the Total Debt Servicing Ratio (TDSR) framework2013-08-27: HDB loan and resale measures, August 20132017-03-10: SSD holding period cut to 3 years; TDSR relaxed for equity withdrawal2018-02-19: Budget 2018: top BSD rate raised to 4% above S$1m2018-02-19: Budget 2018: Proximity Housing Grant enhanced2018-07-05: Property cooling measures, July 2018: higher ABSD and lower LTV limits2021-12-15: Property cooling measures, December 2021: higher ABSD, TDSR 55%, HDB loan LTV 85%2022-09-29: Property measures, September 2022: higher TDSR and MSR rate floor, HDB loan LTV 80%, 15-month wait-out2023-02-14: Buyer's Stamp Duty raised for higher-value properties, Budget 20232023-02-14: CPF Housing Grant raised for first-time resale buyers, Budget 20232023-04-26: ABSD rates raised, April 20232024-08-19: HDB loan LTV cut to 75% and Enhanced CPF Housing Grant raised2025-07-03: Seller's Stamp Duty holding period back to four years, rates raised by 4 pp

Latest: Private 219.4 (Q2 2026); HDB 202.8 (Q2 2026).

Table view
PeriodPrivate homes (URA price index)HDB resale flats (HDB Resale Price Index)
Q2 2026219.4202.8
Q1 2026218.3203.4
Q4 2025216.4203.6
Q3 2025215.1203.7
Q2 2025213.2202.9
Q1 2025211.1201.0
Q4 2024209.4197.9
Q3 2024204.7192.9
Q2 2024206.1187.9
Q1 2024204.3183.7
Q4 2023201.5180.4
Q3 2023196.0178.5
Q2 2023194.4176.2
Q1 2023194.8173.6
Q4 2022188.6171.9
Q3 2022187.8168.1
Q2 2022180.9163.9
Q1 2022174.8159.5
Q4 2021173.6155.7
Q3 2021165.3150.6
Q2 2021163.5146.4
Q1 2021162.2142.2
Q4 2020157.0138.1
Q3 2020153.8133.9
Q2 2020152.6131.9
Q1 2020152.1131.5
Q4 2019153.6131.5
Q3 2019152.8130.9
Q2 2019150.8130.8
Q1 2019148.6131.0
Q4 2018149.6131.4
Q3 2018149.7131.6
Q2 2018149.0131.7
Q1 2018144.1131.6
Q4 2017138.7132.6
Q3 2017137.6132.8
Q2 2017136.6133.7
Q1 2017136.7133.9
Q4 2016137.2134.6
Q3 2016137.9134.7
Q2 2016140.0134.7
Q1 2016140.6134.7
Q4 2015141.6134.8
Q3 2015142.3134.6
Q2 2015144.2135.0
Q1 2015145.5135.6
Q4 2014147.0137.0
Q3 2014148.6139.1
Q2 2014149.7141.5
Q1 2014151.3143.5
Q4 2013153.2145.8
Q3 2013154.6148.1
Q2 2013154.0149.4
Q1 2013152.4148.6
Q4 2012151.5146.7
Q3 2012148.8143.1
Q2 2012147.9140.3
Q1 2012147.2138.5
Q4 2011147.4137.7
Q3 2011147.0135.4
Q2 2011145.1130.4
Q1 2011142.3126.4
Q4 2010139.2124.4
Q3 2010135.5121.3
Q2 2010131.7116.6
Q1 2010125.1112.1
Q4 2009118.4109.0
Q3 2009110.3105.0
Q2 200995.3101.4
Q1 2009100.0100.0
Q4 2008116.4100.8
Q3 2008123.999.4
Q2 2008126.995.4
Q1 2008126.791.3
Q4 2007122.188.0
Q3 2007114.483.2
Q2 2007105.678.1
Q1 200797.675.8
Q4 200693.174.9
Q3 200689.674.2
Q2 200687.374.3
Q1 200685.873.6
Q4 200584.573.5
Q3 200583.373.2
Q2 200582.373.5
Q1 200581.977.2
Q4 200481.377.1
Q3 200480.776.3
Q2 200480.476.2
Q1 200480.375.3
Q4 200380.675.1
Q3 200380.774.3
Q2 200381.172.5
Q1 200381.671.0
Q4 200282.369.9
Q3 200282.669.9
Q2 200282.269.2
Q1 200282.869.1
Q4 200183.869.6
Q3 200187.670.6
Q2 200190.372.1
Q1 200191.173.2
Q4 200094.975.8
Q3 200097.677.6
Q2 2000100.479.3
Q1 200098.980.3
Q4 199995.979.8
Q3 199991.178.1
Q2 199984.372.2
Q1 199975.471.2
Policy measures marked on this chart (23)
  • 2025-07-03 Seller's Stamp Duty holding period back to four years, rates raised by 4 pp
  • 2024-08-19 HDB loan LTV cut to 75% and Enhanced CPF Housing Grant raised
  • 2023-04-26 ABSD rates raised, April 2023
  • 2023-02-14 CPF Housing Grant raised for first-time resale buyers, Budget 2023
  • 2023-02-14 Buyer's Stamp Duty raised for higher-value properties, Budget 2023
  • 2022-09-29 Property measures, September 2022: higher TDSR and MSR rate floor, HDB loan LTV 80%, 15-month wait-out
  • 2021-12-15 Property cooling measures, December 2021: higher ABSD, TDSR 55%, HDB loan LTV 85%
  • 2018-07-05 Property cooling measures, July 2018: higher ABSD and lower LTV limits
  • 2018-02-19 Budget 2018: Proximity Housing Grant enhanced
  • 2018-02-19 Budget 2018: top BSD rate raised to 4% above S$1m
  • 2017-03-10 SSD holding period cut to 3 years; TDSR relaxed for equity withdrawal
  • 2013-08-27 HDB loan and resale measures, August 2013
  • 2013-06-28 MAS introduces the Total Debt Servicing Ratio (TDSR) framework
  • 2013-01-11 Property cooling measures, January 2013
  • 2012-10-05 Maximum loan tenure of 35 years and tighter LTV limits, October 2012
  • 2011-12-07 Additional Buyer's Stamp Duty introduced, December 2011
  • 2011-01-13 Property cooling measures, January 2011
  • 2010-08-30 HDB measures after National Day Rally 2010: DBSS income ceiling, 5-year MOP for non-subsidised flats
  • 2010-08-30 Property cooling measures, August 2010
  • 2010-02-19 Seller's Stamp Duty introduced and LTV limit cut to 80%, February 2010
  • 2009-09-14 Interest-only loans and Interest Absorption Scheme disallowed, September 2009
  • 2005-07-19 Property policy review, July 2005: LTV limit raised to 90%, CPF housing rules eased, foreign ownership rules eased
  • 2001-10-12 Second off-budget package, October 2001: property tax rebate, stamp duty cut, gains tax removed, land sales eased

Source: URA, HDB (via SingStat). Data to Q2 2026.

Mistake 8: ignoring the lease and the exit

Before you buy, ask two questions. Who will buy this home from you in 15 years? And can you use your CPF for it? If the remaining lease does not cover the youngest buyer to age 95, CPF usage is pro-rated. The next buyer of an ageing flat faces the same limit, so fewer people can afford it. Do not pay extra for en bloc potential. Lower consent thresholds for older condos are on the way, but no start date has been announced, and a sale still needs a buyer at the right price. For new HDB flats, check the classification: Plus and Prime flats carry a 10-year MOP, can never be rented out whole, and must repay a subsidy recovery of 6–14% of the resale price or valuation when sold.

On a new launch, the developer must fix defects that appear within 12 months of vacant possession (or of the TOP notice, if earlier), and must make them good within one month of your notice. Book a professional inspection early in that window, rather than discover leaks after it ends. Our guide to developer defects explains the process. A resale home has no defects liability period, so inspect before you exercise the OTP. Let your lawyer check the title, any caveats and government schemes that affect the property.

Bottom line

Good home purchases are boring. Know your full cash need, get the loan approved first, borrow less than the maximum, and map out ABSD and SSD before you sign anything. Above all, do not let a sales gallery set your timetable. Our 10-step buying process puts these checks in order.

buying a homefirst time buyersabsdssdcash outlaydue diligence

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