Saturday, March 31, 2018

HDB Flat Purchase Chronicles - Prelude - The Expected Financing and Expenses

This article will be part of a series that shares my journey to becoming a homeowner for the first time. There will be more article(s) that not only covers the actual cost, but also the process of purchasing resale flat using the HDB Resale Portal.

To date, my wife and I have paid the Option-to-Purchase (OTP) Deposit, and are awaiting the result of the HDB Resale Application. The below breakdown is our expected expense overall - actual amount may differ.


Flat Purchase
1) Flat Purchase Price $335,000
- OTP Grant Deposit $1000 (Paid via Cash)
- OTP Exercise Deposit $4,000 (Paid via Cash)
- Balance $330,000 to be paid for via CPF, Housing Grants, Housing Loan and Cash

Additional Costs expected
2) Valuation Report $120 (Cash, includes GST)
3) Buyer Stamp Duty $5,000 (Pay via CPF)
- First $180,000: 1% $1,800
- Next $155,000: 2% $3,200
4) Legal Fee for OTP (Pay via CPF) $699
- Acting in Purchase: $321
- Acting in Mortgage: $332
- 7% GST: $46
5) Legal Fee for Mortgage: $900 (Pay via Cash)
6) Caveat Fee: $130 (Pay via Cash)
7) Title Search Fee: $10 (Pay via Cash)
8) Resale Application Fee $80 (Paid via Cash)

Total Upfront Damage expected for Flat itself
Cash: Approx $37,140
- $35,900 contributes to the Flat Purchase Price
- $1,240 added cost
CPF: Approx $45,000
- $39,300 contributes to the Flat Purchase Price
- $5,700 added cost

Flat Maintenance Cost
a) Mortgage: $1020 monthly (for 25 years, subject to early repayment)
b) Home Protection Scheme with a coverage of 100% Mortgage: $190 annually (for 22 years)
c) Basic Fire Insurance: $6 every 5 years

Stay tuned for more updates!


  1. Congratulations on your flat purchase!

    You may look up on this checklist, too.


    1. Hi Bedokian, thanks for the link! I'll put this in as well! :)

  2. this is great!
    i am also in the midst of my first resale purchase. these extra cost is quite handy to know!

    btw, all these costs, are only paid by cash/cpf? can use credit cards?

    1. Hi foolish chameleon, I'm glad this has helped you! :)

      Let's see... based on HDB Resale Cost and Fees...

      All the small additional costs (e.g. Resale Application Fee, Request for Valuation) can be paid via credit card if using Resale Portal.

      However, the larger additional costs such as lawyer fees and stamp duty can only be paid via Cash (Cashier's Order, NETS) or CPF.

    2. nice.. that will greatly help in the cashflow!

      i assume you are using HDB loan, since you are wiping out your cpf. how did you decide between using bank loan vs HDB loan?

      also, have you set aside for reno as well?
      doing my sums now, and i am roughly allocating 10% as reno cost or ~$30+/psf (obviously this will dep on how extensive/expensive your taste is)

    3. @foolish chameleon:

      Yup that's right! I will be using HDB Loan. :)

      Although we will be able to finance via a bank loan, we decided it is safer to do a HDB Loan due to the expected rising interest rate and room for negotiation if contingencies are needed.

      For reno, we are fortunate to set our eyes on a unit that's well furnished and well taken care of, so no major reno are needed.

      As for minor reno costs including furnitures and electrical appliances, we are still working it out, but are expecting to meet a budget of under $20,000 in the end and plan to finance by installment as far as possible.

      How much are you expecting to spend on your home overall?

  3. Congratulations on buying your first home!

    May I know if you have chosen to pay the monthly mortgage of $1,020 via cash, CPF, or both?

    Could I also understand why you have chosen to take a 25-year loan, as compared to a shorter one like 15-year? What do you intend to do with the money freed up from paying lesser monthly?

  4. Hello Jiawei!

    For my monthly mortgage, I will be paying a combination of both CPF and cash.

    With my monthly salary, I am unable to take up a larger or shorter term HDB Housing Loan, so rather than by choice, 25 year loan was my only viable option.