Private Property Financing Guide
(Preparation guide to buying your first private property)
Buying your first condominium is a big step, and you shouldn’t be worried about the cost when the time comes. Don't know where to start or how to prepare to buy a condo? Don't worry, here is a 10 steps guide that will help you prepare to buy your first condo.
1. Prepare a cash buffer for yourself
2. Pay down your debts to increase your Total Debt Servicing Ratio
3. Ensure you have at least 20% of property value in your CPF or Bank account
Check out how much you have by logging into your CPF Account
(The Basic Retirement Sum in 2018 is $85,500)
(The Basic Retirement Sum in 2018 is $85,500)
4. Budget for your maintenance fees
5. Have sufficient sum set aside for ABSD
6. Adjust your credit score to at least "AA" range
7. Get properly insured
8. Prepare to cope with interest rate changes
9. Have a retirement plan
10. After you have gotten your finances sorted, get an AIP
After getting your AIP, you will know the quantum of the property you can afford, the bank loan you can take and how much monthly mortgage you need to pay. This will give you peace of mind when you go shopping for your next property.
You may also be interested to find out more about:
1. How much loan can you take? (Bank Loans)
2. How much is the stamp duty? (Buyer's Stamp Duty)
3. What is the additional stamp duty & LTV? (Additional Buyer's Stamp Duty & Loan-To-Value)
1. How much loan can you take? (Bank Loans)
2. How much is the stamp duty? (Buyer's Stamp Duty)
3. What is the additional stamp duty & LTV? (Additional Buyer's Stamp Duty & Loan-To-Value)
