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Looking to buy an Executive Condominium (EC) but unsure of the procedure? Rest assured, you are not alone. This article will guide you step by step on owning your first EC.
Executive Condominium, often known as EC is a form of hybrid housing that balance public housing (HDB) with Condo facilities but with HDB restrictions.
Prior any purchase of Executive Condominium in Singapore, E-Application is required to be submitted to HDB for approval before purchase. HDB will access applicants on a case by case basis to approve the application.
9 Steps to Buying an Executive Condo
Step 1: Check your Eligibility
- EC Applicants need to be at least 21 yrs old
- Need to form Family Nucleus. Applicants applying under Joint Singles Scheme need to be at least 35 years and above
- At least one applicant has to be a Singapore Citizen. The other applicant has to be either a Singapore Citizen or Permanent Resident.
- Gross household income cannot exceed $14,000
- Has to be under these HDB Eligibility Schemes:
- Fiance / Fiancee Scheme
- Public Scheme
- Joint Singles Scheme
- Orphans Scheme
- You will be prevented from buying an EC if you
- Own private property (Locally or oversea) or have disposed it within the last 30 months
- Have not met the Minimum Occupation Period (MOP) on your existing subsided flat
- Have ever cancel the purchase for a DBSS Flat / EC or HDB Application in which you will be barred for 5 years and 1 year respectively.
- are a divorcee – for 3 years from divorce date and Only 1 party in the divorce can purchase a subsided flat
- own or have owned
- HDB Flat bought direct from HDB
- EC/DBSS bought direct from Developer
- taken grant for buying a HDB Resale Flat
Step 2: Get your Finances Sorted
- Apply Approval in Principal (AIP) from Bank – Assess how much you can loan based on Total Debt Servicing Ratio (TDSR) and Mortgage Ratio. EC has to get a bank loan.
- Assess your CPF Fund – Assess how much CPF Fund that you have and how much you can utilise.
- Resale Levy of about $55,000 is payable if you ever
- Purchase a new HDB flat direct from HDB
- Taken CPF Housing grant for resale flat purchase
- Prepare 20% Downpayment – You can loan up to 80% for your home loan and have to prepare 20% for downpayment. For that 20% downpayment, 5% has to be in cash, where that 15% has to be in CPF or Cash
- Prepare Stamp Duty (about 3%) and Legal Fee (about $2,500)
- Example: Purchase EC at $800,000
- Option Fee (5%) – $64,000 (Cash)
- Exercise Fee (15%) – $192,000 (Cash or CPF)
- Stamp Duty (3% – $5,400) – $18,600 (Cash or CPF)
- Legal Fee – $2,500
- Total: $181,100
Step 3: Shop around for Executive Condo
Search in the list of latest upcoming Executive Condominium. Note that EC is purchase direct from Developers, not from HDB.
Step 4: Submit your Application
Submit your E-App to indicate your interest in the property. This submission is more of registration of interest and is no means obligates you to purchase the property. Its to check your eligibility and give your priority in booking your unit.
Step 5: Book Your Unit
After your submit your E-App, you should know know your eligibility if you qualify to buy an EC. Next is to head down to showflat and choose your choice unit.
If the project has not been launch, the sales mode likely be ballot where you be given a queue number and once your queue number is called you can choose your choice unit on whatever that is available.
If the project has been launched, you can choose and book whatever that is available on the table.
Step 6: Hiring Solicitors and Confirm Loan
You need a solicitor to act on your behalf and it will be good if you can appoint your solicitor when booking your unit so that the Sales and Purchase Agreement (SNP) can be deliver to your solicitors and they can track your exercise date etc.
Meanwhile, get quotes from different banks and understand the packages. Confirm your bank loan only when your EC Application is approved and when you shortlist your unit.
Step 7: Sales & Purchase Agreement (SNP)
If your application is approved and you have confirm your unit, you will expect to receive the SNP from developer solicitor within 2 weeks and you will have to exercise the option within 3 weeks on the day u receive the SNP. That is why its important to appoint a solicitor and get the option to be delivered to the solicitor so that they can track the date for you.
On the other hand, if your application got rejected, your 5% option fee will be refunded back to you at no penalty.
Step 8: Progressive Payment
When to start your progressive payment depends on the progress on the construction. If you got your bank loan, your bank will pay on your behalf once developer trigger a new milestone on the progressive.
If you are paying by cash, you have to make the payment to your solicitor once developer call for payment.
Step 9: Key Collection
It takes about 3 years to build a new development from bare land. Once your place TOP, its time to collect your keys and you can move in. Your progressive payment will be at 85% mark with balance as a safe guard for your defect liability. You can enjoy 1 year defect liability on your beloved home. the 1 year mark start on your TOP date.
Executive Condominium (EC) E-App
This E-App does not constitute to a sale. There is NO PENALTY if you decide not to proceed with your EC purchase after this submission. This submission also does not guarantee you will get your unit.
The Objective of E-Application is for prior approval from HDB on applicants eligibility.