How Much Condo Can I Afford in Singapore? A Worked Budget

The condo you can afford in Singapore is the lowest price allowed by your bank loan, upfront funds and monthly household budget. Buyers often calculate one of the three, then discover the shortfall after they have chosen a unit.

Start with a written budget before viewing. The calculation below uses a $2 million condo as an illustration, not a recommended price.

Start with the loan, not the listing price

For a first housing loan that meets the relevant tenure and age conditions, a bank loan may cover up to 75% of the lower of the purchase price or valuation. The bank still applies the Total Debt Servicing Ratio (TDSR), which caps all monthly debt commitments at 55% of gross monthly income.

Banks assess residential property loans using the higher of a 4% interest-rate floor or the rate that applies after any promotional period. The stress rate can produce a smaller loan than a calculator using the advertised first-year rate.

Your age, loan tenure, variable income, existing housing loans and credit record can reduce the amount further. Get an in-principle approval and ask the bank which income and debts it used. Our TDSR and MSR guide shows the calculation.

Work out the upfront condo funds

Assume the bank approves a 75% loan on a $2 million condo and its valuation also comes in at $2 million.

Upfront item	Illustration
Purchase price	$2,000,000
Maximum 75% bank loan	$1,500,000
Minimum 5% cash payment	$100,000
Remaining 20% downpayment, cash or eligible CPF	$400,000
Buyer's Stamp Duty	$69,600
ABSD	Depends on buyer profile
Legal, valuation, renovation and reserve	Obtain quotes and set a budget

IRAS calculates Buyer's Stamp Duty (BSD) on the higher of price or market value. For a $2 million residential property under the current bands:

Portion	Rate	Duty
First $180,000	1%	$1,800
Next $180,000	2%	$3,600
Next $640,000	3%	$19,200
Next $500,000	4%	$20,000
Remaining $500,000	5%	$25,000
Total BSD		$69,600

Check the amount using the IRAS Stamp Duty Calculator before committing. The rates or your facts may differ by the time you buy.

The table assumes the valuation matches the price. If the bank values the condo at $1.9 million, its 75% ceiling applies to $1.9 million, while you still owe the $2 million price. CPF Board states that the amount above valuation must be paid in cash.

Add ABSD before deciding that the cash works

Additional Buyer's Stamp Duty (ABSD) depends on citizenship, the residential properties counted against each buyer and the ownership structure.

Under rates applying from 27 April 2023:

Buyer profile	ABSD rate
Singapore Citizen, first residential property	0%
Singapore Citizen, second residential property	20%
Singapore Citizen, third or later residential property	30%
Singapore Permanent Resident, first residential property	5%
Singapore Permanent Resident, second residential property	30%
Foreigner buying residential property	60%

IRAS applies ABSD to the higher of price or market value. A $2 million purchase subject to 20% ABSD needs another $400,000 at completion, even if the buyer may seek a refund after selling an existing home.

Married couples can qualify for remission in specific circumstances, including a joint purchase in both names, at least one Singapore Citizen spouse and the sale of the first home within the prescribed period. Check the rates and ownership rules in our ABSD guide, then read the HDB-to-condo upgrade guide before treating a future refund as available cash.

Test the monthly payment against household life

A bank may approve debt commitments up to the TDSR ceiling. Your household does not need to spend to that ceiling.

For the $1.5 million loan illustration, a 30-year mortgage assessed at 4% works out to about $7,160 a month using a standard amortising-loan calculation. With no other debt, the 55% TDSR boundary points to gross monthly income of about $13,020. A car loan, education loan or other debt reduces the mortgage room.

The approved payment excludes costs outside the mortgage:

• condo maintenance and possible special levies
• property tax and home insurance
• repairs and replacement of appliances
• higher transport or childcare costs after moving
• cash needed when CPF contributions do not cover the instalment

Run the household budget with one income reduced, the mortgage rate above the current package and a maintenance increase. If the reserve disappears, the purchase price is too high for the way your household lives.

Keep completion funds separate from the renovation budget. Completion follows fixed legal deadlines, while most furnishing choices can wait. If a renovation overrun could prevent completion, the purchase uses too much of your liquid savings.

Decide how much CPF to use

CPF Ordinary Account savings can pay eligible downpayment, stamp and legal fees and mortgage instalments for a private residential property. CPF usage remains subject to the property's valuation, remaining lease and CPF housing limits.

Using all available OA lowers the cash needed today but increases the principal and accrued interest that must return to CPF when you sell. It also removes an account buffer that could service the mortgage during an income interruption.

CPF Board recommends considering a $20,000 OA reserve for housing payments. Use the CPF Home Purchase Planner and the CPF housing usage calculator with your own balances and the property's remaining lease.

Our guide to using CPF for property explains the sale refund and retirement trade-off.

Apply four affordability tests

A condo passes the budget only if it clears all four.

1. Bank test

You have a current in-principle approval based on declared income, debts, age and tenure. The approved loan supports the intended price after allowing for a lower valuation.

2. Completion test

Cash and usable CPF arrive before each payment deadline. HDB sale proceeds or CPF refunds that arrive after condo completion do not fund completion.

3. Monthly test

The mortgage and ownership costs leave room for household spending, retirement saving and a higher interest rate. Passing TDSR provides no household comfort guarantee.

4. Exit test

You can hold through Seller's Stamp Duty exposure, a weak resale market or a job change. A budget that requires selling on a chosen date gives the market control over your finances.

Our view on a sensible condo budget

Choose the price that leaves reserves after BSD, ABSD and renovation, not the highest number generated by a 75% loan. Ask the bank for the assessed monthly payment, then rebuild your household budget around that amount and the condo's running costs.

For HDB upgraders, add one more constraint: the sale proceeds and CPF refund must arrive in time. A household can have enough net worth for a condo and still lack the funds on completion day. Buyers considering completed units can carry this budget into the resale condo due-diligence checklist.

Sources: CPF downpayment rules, CPF property considerations, IRAS stamp-duty rates, MAS, MND and HDB property-loan measures, CPF Home Purchase Planner.