Buying a home in Singapore is no walk in the park. It’s a journey filled with financial planning, eligibility requirements, and important decisions that could shape your future. If you’re here, chances are you’re weighing your options and considering whether purchasing a condominium is a feasible choice for you as a first-time buyer.
Understanding the down payment required for a condo is crucial to determining whether this is the right housing option for you. This guide breaks down everything you need to know so you can make an informed decision.
Why Are First-Time Buyers Choosing Condos?
Traditionally, most Singaporeans would start with an HDB BTO (Build-To-Order) flat and upgrade to a condominium later in life. However, this conventional route has changed for several reasons.
1. Delays in BTO Projects
The COVID-19 pandemic caused massive delays in BTO flat construction, with some projects being pushed back by a year or more due to supply chain disruptions and labor shortages. While HDB has since completed the last of the COVID-affected BTO projects in early 2025, many buyers grew impatient and opted for resale flats or even condominiums instead. Some even appealed to cancel their BTO applications due to the extended waiting times.
2. Ineligibility for BTO Flats
Not everyone qualifies for an HDB BTO flat. Factors such as citizenship, marital status, and income ceilings play a role in eligibility. If you fall outside these criteria, purchasing a condo may be your next best option.
3. Soaring Resale HDB Prices
Resale HDB prices have been on a relentless rise, now set to increase for the 23rd consecutive quarter by the end of 2025. Some flats have even crossed the million-dollar mark:
- July 2023: A 5-room resale flat in Toa Payoh sold for $1.42 million.
- January 2024: A Design, Build and Sell Scheme (DBSS) flat in Toa Payoh fetched $1.57 million.
- July 2024: A 5-room HDB unit at Margaret Drive set a new record at $1.73 million.
Given these skyrocketing prices, some buyers are reconsidering whether paying a premium for an HDB resale flat is worthwhile when they could invest in a private condominium instead.
4. Limited BTO Choices
If you apply for a BTO flat and get an opportunity to book a unit, rejecting the offer comes with penalties. Since 2023, first-time applicants who decline their booking chance lose their priority status for a year. If they reject a second time within that period, they are barred from applying for another BTO flat for an entire year.
With these restrictions, some buyers prefer the flexibility of the private property market.
How Much Is the Condo Downpayment for First-Timers?
If you’re looking at purchasing a condo, your downpayment will depend on several factors, including the Loan-to-Value (LTV) limit, minimum cash downpayment, and stamp duties.
For first-time buyers with no existing home loans, the LTV limit is 75% if your loan tenure is within 30 years and doesn’t extend past age 65. This means you’ll need to fork out 25% of the property price as a downpayment, which can be covered using cash or CPF.
Let’s assume you’re eyeing a modest condo priced at $800,000 in a suburban area. Here’s a breakdown of the downpayment and additional costs:
Category | Singaporeans | Permanent Residents (PRs) | Foreigners |
Loan-to-Value (LTV) (75%) | $600,000 | $600,000 | $600,000 |
Condo Downpayment (25%) | $200,000 | $200,000 | $200,000 |
Minimum Cash Downpayment (5%) | $40,000 | $40,000 | Not Applicable |
Stamp Duty (BSD + ABSD) | $18,600 | $58,600 | $498,600 |
Total Downpayment (CPF + Cash) | $218,600 | $258,600 | $698,600 |
Cash on Hand Required | $58,600 | $98,600 | $698,600 |
How Much Cash & CPF Do You Need for the Down Payment?
Fortunately, you can use CPF savings to finance a significant portion of your condo downpayment, reducing your cash outlay. The funds must come from your CPF Ordinary Account (OA).
In our $800,000 condo example:
- The total downpayment is $200,000 (25% of the property price).
- $40,000 (5%) must be paid in cash.
- The remaining $160,000 (20%) can be covered using CPF OA.
However, you’ll need to ensure you have sufficient savings in your CPF OA. If you earn $4,000 per month, it would take over 8 years to accumulate $160,000 in your OA. If your CPF savings fall short, you’ll need to pay more in cash.
Do You Need to Pay Stamp Duty in Cash?
Buyer’s Stamp Duty (BSD)
Regardless of whether you’re a first-time buyer, BSD is a mandatory cost for purchasing any residential property in Singapore. It follows a tiered rate system based on the property’s value:
- 1% on the first $180,000
- 2% on the next $180,000
- 3% on the next $640,000
- 4% on the remaining amount above $1 million
For an $800,000 condo, BSD amounts to $18,600.
Additional Buyer’s Stamp Duty (ABSD)
If you’re a Singapore citizen buying your first property, you are exempt from ABSD. However, PRs and foreigners are subject to additional costs:
- PRs: 5% ABSD ($40,000 for an $800,000 condo)
- Foreigners: 60% ABSD ($480,000 for an $800,000 condo)
BSD and ABSD must be paid in cash first before you can request a reimbursement from your CPF OA.
Is Buying a Condo Feasible for You?
Purchasing a condo as a first-time buyer in Singapore requires careful financial planning. You’ll need to consider: ✔️ Your savings in cash and CPF OA
✔️ Your ability to service a home loan
✔️ Additional costs such as stamp duties
If your CPF savings are insufficient, you’ll need to fork out more in cash. Given the rising costs of both HDB resale flats and private properties, ensuring you have a solid financial plan before making a purchase is crucial. Take time to assess your budget, explore financing options, and make an informed decision that aligns with your long-term goals.
Ready to take control of your financial future?
Consider scheduling a financial health check with a Financial Advisor. Whether you’re just starting your financial journey or looking to optimize your existing plan, a Financial Advisor can provide personalized guidance tailored to your unique goals and circumstances.
Learn more about: HDB Sale of Balance Flats & Open Booking: Your 2025 Guide