New Launch & Resale Condo Timeline: Everything You Need To Know

This is the final part of our 18-part first-time home buyer series. You may refer to the full table below:

The days zoom past when you’re buying your first home; and before you know it, you’ll be looking at loan repayments and key collection. Throughout the process though, you want to make sure you’re keeping track and know what to expect. The last thing you want is to panic a few days before a vital payment, and or end up with a lapsed Option to Purchase. Here we've detailed the new launch condo timeline as well as the resale condo timeline to help you out:

Timeline of buying a new launch condo

Day 0: Search for the cheapest bank loan, secure Approval In Principle (AIP), and appoint a law firm.

Before you start looking around for a new home, it’s important to know how much you can afford to spend. 

To do this, begin by checking around to find the cheapest bank loan (contact us if you need help with this). Once you’ve found the lowest rate, approach that bank to get AIP.

The bank will ask for your various income documents (e.g. payslips, CPF contribution, and so forth), and issue the AIP stating how much they’re able to lend you. The AIP is usually valid for 30 days, although it varies between banks. 

If you initiate the purchase after the AIP expires, there’s no guarantee of getting the loan.

You should also appoint a law firm at this point, to handle the conveyancing. The cost is quite standardised, between $2,500 to $3,000; but note that the law firm has to be one recognised by the bank (the mortgage banker will let you know your options). 

You can also pay the law firm’s fees with your CPF.

After all this, you can start visiting the showflats and choosing a unit.

Day 1: Pay the booking fee, once you’re 100 per cent sure of the unit you want.

The booking fee for a new launch condo requires you to put down five per cent of the purchase price. This must be done in cash, you cannot get a second loan to cover this.

You will also be issued the OTP at this point. You’ll also be given the Property Details Information (PDI) – these contain everything from the floor plans to the condo regulations. You need to agree to all the details by initialling every page. 

Week 1 to 2: Receive the Sale & Purchase (S&P) Agreement 

The S&P Agreement will usually be sent to your appointed lawyers first, for them to vet. They will advise you if there’s anything untoward. 

Week 3 to 5: Sign the S&P and exercise the OTP

If you choose not to sign the S&P agreement at this point, and the OTP lapses, you’ll be refunded 75 per cent of your booking fee. Otherwise, sign and move on to the next step:

Week 6 to 7: Pay all the stamp duties

The Buyers Stamp Duty (BSD) and Additional Buyers Stamp Duty (ABSD), if applicable, must be paid within 14 days of completing the S&P agreement. This is payable with any combination of cash or CPF (note you can only use your CPF for new launch condos). 

Week 8 and onwards: Make your remaining down payment, then the bank will disburse your home loan and monthly repayments begin

The remaining 15 per cent of your down payment can be paid in any combination of cash or CPF. Once this is made, the bank will disburse the remaining funds to purchase the property. You’ll be informed of the exact date when the loan repayments begin.

Check out the earlier part of this guide to understand the Progressive Payment Scheme (PPS) for new launch, under-construction properties.

Home loan repayments can be made in cash or CPF.

Resale condo timeline

This is broadly similar to the above, with some exceptions:

Day 0: Search for the cheapest bank loan, secure Approval In Principle (AIP), and appoint a law firm.

This is similar to buying a new launch condo, above.

Day 1: Secure the OTP, once you’re 100 per cent certain you want to buy

For resale units, you usually secure the OTP by depositing one per cent of the price. This must be paid in cash.

The OTP is usually valid for 14 days, but it is not compulsory and is entirely negotiable. 

Week 1 to 2: Exercise the OTP, and sign the Sale & Purchase (S&P) Agreement 

Once you’re ready, you can exercise the OTP by paying another four per cent of the price. This must be paid in cash. You can, at the same time, sign the OTP at your law firm. 

Remember, the completion period for resale is not fixed at 8 to 12 weeks, again, this is negotiable. 

If you allow the OTP to lapse without signing, the seller is under no obligation to refund you the initial deposit. 

Week 2 to 4: Pay all the stamp duties

This is similar to buying a new launch condo, above.

Week 8 onwards: May your remaining down payment, and begin monthly home loan repayments

The remaining down payment is usually 20 per cent*, which can be paid in any combination of cash or CPF.

The bank will then disburse the remaining sum for your property. You will be informed of exactly when loan repayments will begin. Monthly repayments can be made in cash or CPF.

*Assuming the bank gives you a full loan of 75 per cent of the price or property value, whichever is lower.

Note that there may be exceptions to the above timeline

For example, some OTP documents may even give you up to 30 days to exercise them (OTP documents are reviewed and can be amended by both parties’ law firms). Likewise, there have been cases of eager buyers completing the transaction all in a day – they simply pay the five per cent, and immediately sign the OTP agreement on the spot. 

Regardless of what variations occur, one thing holds true: always get AIP before you initiate the buying process. The most common problem is when a buyer can’t get financing from a bank, after they’ve already secured or exercised the OTP – then it all becomes a pointless waste of money.

For more information on the latest property happenings, or in-depth reviews of Singapore’s top condos, follow us on Stacked Homes. 

For more details on buying your first home, check out the rest of our Ultimate guide on Stacked Homes. 

This is Part 18, and the final part of our Ultimate Guide to buying your first home. If you haven’t read Part 17, you can do so at the link!