Your Ultimate Resale Private House Buying Guide

All You Need To Know To Get A Resale Private Home
Published by admin on 16 Aug 2021 Last Updated on 04 Jan 2022
BACKGROUND
This page applies only for resale private houses. For HDBs, check out our respective guides for buying a BTO, SBF, New EC Flat or Resale HDB / DBSS / EC Flat. For new private properties, see our guide for buying a New Private Property.

ARRANGE FINANCING
You need to secure a bank loan for your property (unless paying full in cash). See our Mortgage & Financing Guide for important info and calculations for your housing loan.

I recommend Redbrick (and specifically Daniel) for their mortgage advisory services. They will provide you an optimal loan package and a conveyancing law firm at an attractive rate. Also, they cost you nothing as they take their fees from the banks.

  • Redbrick Mortgage Advisory — Daniel Ong (+65 9875 4262)

SELECTION & BOOKING
  • Check online property websites (mainly Property Guru, SRX, 99.co) for available HDB resale flats.
  • Arrange an appointment with the seller's property agent (directly or via your agent) to view the resale flat(s) you are interested in (See: Finding Your Perfect Home).
  • Once you have made your decision, make a price offer to the seller or seller's agent.

SUCCESS > RECEIVE OTP & COMPLETE FINANCING
  • If your offer is accepted, pay the Option Fee (1% of purchase price, usually a cheque) to the seller who will grant you an Option to Purchase (OTP).
  • Discuss with your bank representative/mortgage advisor to secure a Mortgage Package, Conveyancing Lawyer, and Letter of Offer (LO)

EXERCISE OTP & SIGN S&P
  • Within 2 weeks of receiving the OTP, sign the OTP and return it to the seller along with the Booking Fee (4% of purchase price), the Buyer's Stamp Duty (BSD) and any Additional Buyer's Stamp Duty (ABSD) to "exercise" the OTP (usually all via bank transfer).
  • Also sign the Letter of Offer and return it to the mortgage bank.
  • Your lawyer will receive the Sales & Purchase Agreement (S&P) from the seller and will arrange an appointment for you to sign the S&P at the law firm office.
  • If you decide not to purchase the resale flat, you will forfeit the Option Fee.

KEY COLLECTION
  • Your mortgage bank and lawyer will complete all the paperwork.
  • 2.5 months later, pay the remaining 95% to the seller via your lawyer (Balance of the purchase price minus your home loan amount to be paid using cash and/or CPF, usually by Cashier's Order).
  • You can then collect your keys from the seller.

RESTRICTIONS
  • For condos and apartments, check with your Estate Management on pet restrictions.

Back < FINDING YOUR PERFECT HOME   |   Next > CREATING YOUR PERFECT HOME

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