This is probably the only difference between an Executive Condo and a regular HDB flat. Instead of buying through HDB, an Executive Condo is bought directly from the developer. Thus, you need to get in direct contact with the developer to understand more about the flat types and submitting an application.
Shop For Around For Your Desired Executive Condo Development
The process of buying an Executive Condo starts with shopping for one. Unlike HDB where you get all the flat models in a central location (i.e. HDB Hub @ Toa Payoh), each Executive Condo has its own showroom. You need to visit the physical showroom to check out the flat models from the developer. The showroom is usually located in the vicinity of the land plot.
Increasingly, developers are moving towards a digital process where you need to apply for an e-application before you get invited to the showroom.
- Submit Your Application For Executive Condo
Once you have confirmed your desired Executive Condo unit, the next step is to submit your application. The application process varies depending on whether the development has officially launch or not.
If the developer hasn’t officially launched the development, you can indicate your interest with an electronic application. Once the development is launched, you will be given priority for viewing and booking a unit. If the development has already launched, you can make an application on the spot at the showroom during viewing.
- Awaiting Your Fate
This step is very similar to the HDB application process. You and your spouse will need to anxiously wait for the outcome.
- Booking An Executive Condo Unit
If you are lucky enough to be invited for booking of an Executive Condo unit, congratulations. Similar to the HDB application, you will be given a ballot number. The lower your ballot number is, the more priority you get to choose your Executive Condo unit. Most buyers will shortlist a few units in mind in case their desired unit gets picked up by a ballot number before them.
With a ballot number, you can head down to meet your developer to select the Executive Condo unit. You will be asked to sign an Option To Purchase (OTP) to ‘chope’ your Executive Condo unit. Upon signing the OTP, you will need to pay a 5% option fee, either by Cashier’s Order, cheque or cash. You will also need to bring along the following items:
- Proof of identity/citizenship
- Proof of relationship/marital status
- Income statement
- CPF Housing Grant application form (if eligible). Submission of CPF Housing Grant needs to be done within one week of signing the OTP.
Your developer will then pass you a set of Property Details Information. This contains the floor plans, rules and regulations, offered items and other documents relating to your unit. You will be asked to read every single document and sign on each of the page to indicate that you have read through them. After which, you will …. wait again …. for HDB’s approval of your purchase.
5. Prepare The Necessary Loan And Solicitor Arrangements
The process for HDB’s approval usually takes 4-5 weeks. While you are waiting for HDB’s approval, use the time to source for your loan. If you want to get a bank loan, make sure you source for a competitive rate using iCompareLoan’s loan comparison tool. Don’t spend unnecessarily on interest rate payment.
Concurrently, you should be appointing your solicitors (aka lawyer). He/she will represent you in the Executive Condo purchase and liaise with the bank to iron out details of your loan if you are taking one from the bank.
6. Executive Condo Affordability in Singapore
As Executive Condominiums in Singapore are considered HDB flats at the point of purchase, they are subjected somewhat to HDB financing rules. Buying a HDB flat is subjected to:
- Mortgage Servicing Ratio (MSR) of up to 30% of your gross salary and on top of that;
- Total debt servicing ratio (TDSR) of no more than 60% and;
- Subjected to tenure cap of 25 years.
The executive condominium will be subject to:
- Mortgage servicing ratio (MSR) of up to 30% and;
- TDSR of up to 60%, but the executive condominium and;
- Subjected to a longer tenure cap of 30 years.
You can find out about your loan affordability here.
7.Exercise Your Sales and Purchase Agreement
After HDB has approved your purchase, you will receive the Sales and Purchase Agreement from the developer. You need to sign the agreement and return to the developer 3 weeks from the receipt date to exercise your OTP.
At the same time, you will need to pay the 15% balance of the down payment and buyer’s stamp duty (if applicable). You need to pay the 15% down payment balance within 9 weeks from the date of signing the OTP either through cash or CP. If you are taking a HDB loan, HDB will pay a portion of it by disbursing your loan. The buyer’s stamp duty is due within two weeks of signing the Sales and Purchase Agreement.
8. Decide Between NPS Or DPS
At this point, your choice of Executive Condo is confirmed. But this doesn’t mean that you can stay in it yet. You need to first decide whether you want to start instalment payments for your Executive Condo or choose to defer it till the development is completed.
Normal Payment Scheme (NPS)
Under the Normal Payment Scheme (NPS), you will make payment to your developer each time a pre-set milestone is completed. You can expect a payment of around 5 – 10% of the purchase price every 6 months.
Deferred Payment Scheme (DPS)
You also have the choice for the Deferred Payment Scheme (DPS) where you only start paying once the project is completed. The average time taken for the Executive Condo to obtain Temporary Occupation Permit (TOP) is 3 years. One thing to take note is that DPS comes with a 2-3% premium on the purchase price.
9. Collecting The Keys To Your Executive Condo Unit
Finally, after a long process, your developer informs you of the good news. Your Executive Condo is now complete, and the TOP has been issued. You can now pick up your keys and start letting your interior designer carry out the renovations.
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List Of Executive Condominium In Singapore 1999 through 2018