13 HDB Purchase Fees You’ll Have to Pay When Buying a Flat

Buying an HDB flat in Singapore, whether it’s a brand new Build-To-Order (BTO) unit or a resale flat, involves several different types of fees.

For a beginner, it can seem like a lot of steps, but most of the costs fall into three main categories: initial admin fees, government duties (taxes), and legal and miscellaneous charges. Understanding these is the key to setting your budget.

Buyer’s Stamp Duty (BSD)

The most substantial charge, after the HDB flat’s purchase price itself, is the Buyer’s Stamp Duty (BSD) that’s decided by IRAS. This is essentially a government tax on the property purchase document.

It’s calculated on a tiered basis, meaning the more expensive your HDB flat is, the higher the overall percentage of the price you pay in duty. You have to pay this within 14 days of receiving HDB’s letter of in-principle approval - so watch your mailbox!

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Additional Buyer’s Stamp Duty (ABSD)

Separately, if you already own another residential property, you may also face the high cost of Additional Buyer’s Stamp Duty (ABSD), though most of us usually don’t have to worry about this. These duties are mandatory and are typically due early in the process. If you’re stuck in an ABSD situation, know that you can get your ABSD refunded if you meet certain criteria.

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BTO Application Fee ($10)

You will also have several compulsory initial and administrative fees, which differ slightly for BTO and resale flats. For a BTO flat, you’ll pay a small $10 application fee to join the ballot.

HDB Option Fee (Max. $2,000)

Then you have to pay an Option Fee (up to $2,000 depending on the flat size) to secure the unit when you are successful.

For a resale HDB flat, you will pay an application fee to the HDB and an Option Fee (to be decided between you and seller, max. $1,000) to the seller to obtain the Option to Purchase (OTP).

Cash Over Valuation (COV)

With a resale HDB, you must also be prepared for the Cash Over Valuation (COV)—an amount you may have to pay in cash if the agreed sale price is higher than the official HDB valuation.

HDB Lease In Escrow Registration Fee ($38.30)

The Lease in Escrow Registration Fee applies to buyers of resale HDB flats in certain cases, such as:

• When the full registration of ownership is delayed.
• When interim legal arrangements (like a lease in escrow) are needed to formalise temporary occupancy.

A “Lease In Escrow” agreement is typically used in cases where a buyer of an HDB flat requires more time to complete the formal registration of the flat’s ownership, such as when finalizing the full payment or resolving financing arrangements.

New HDB BTO (Build-To-Order) flat owners do not need to pay the HDB Lease in Escrow Registration Fee. For BTO flats, the lease is granted directly to the buyer upon completion of the flat. The process involves signing the lease agreement with HDB, and ownership is officially registered in the buyer’s name once all conditions (e.g., payment of required fees, fulfilment of loan obligations) are met. There’s no interim “lease in escrow” arrangement required.

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HDB Mortgage In Escrow Registration Fee ($38.30)

New HDB BTO buyers and HDB resale flat buyers who are taking an HDB loan for their flat purchase are required to pay the HDB Mortgage in Escrow Registration Fee. If they are using a bank loan, the fee may still apply depending on how the mortgage is structured and registered with HDB.

The HDB Mortgage in Escrow Registration Fee is a fee charged by the Housing & Development Board (HDB) when a mortgage is registered in escrow as part of the process for securing financing for an HDB flat purchase. This typically applies when a buyer takes out a loan (either a bank loan or an HDB loan) to finance the purchase of an HDB flat, and the mortgage is registered with HDB.

The fee covers the administrative costs associated with registering the mortgage agreement in escrow, which ensures that the loan repayment is secured and that HDB’s interests are protected in case of default.

The fee is usually paid during the process of securing the loan and completing the necessary formalities for the flat purchase. It is typically part of the overall cost that the buyer needs to settle before the purchase is finalised.

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HDB Conveyancing Fees

Finally, you must budget for Legal and Conveyancing Fees, which cover the legal work of transferring the flat’s ownership to you. You can either appoint HDB’s solicitors, who offer competitive, tiered fees, or hire a private lawyer (which is a requirement if you take a bank loan).

Which is cheaper - HDB’s solicitors or private lawyers? You will need to check online for a quotation of legal fees from HDB (hyperlinked, opens in new window). Private lawyers may charge you a flat fee of $1,300 to $2,500.

Survey Fee

There are also smaller mandatory costs like the HDB Survey Fee.

HDB Stamp Duty for Deed of Assignment (Max. $500)

When an HDB flat owner takes out a bank loan (or in some specific cases, a loan from HDB itself), they assign their rights in the property to the bank or HDB as security for the loan. This legal assignment is formalised in a Deed of Assignment (DOA).

The stamp duty for this document is known as Mortgage Duty - the purpose you are paying this stamp duty is so you can secure a housing loan (bank or HDB loan). For HDB, stamp duty for the Deed of Assignment is 0.40% of the loan amount, capped at a maximum of $500.

In simple terms, this is a tax on the legal document that creates the mortgage for the property. This stamp duty on a Deed of Assignment for a loan (mortgage) is typically borne by you, the borrower of the home loan (the HDB flat owner).

HDB Caveat Registration Fee ($64.45)

The HDB Caveat Registration Fee is a small, mandatory expense that secures your legal claim over the flat during the period between exercising the option and the final legal transfer of ownership.

Once you exercise the Option to Purchase (for resale) or sign the Agreement for Lease (for BTO), you have a legal and financial interest in the property. The Caveat is an official notice registered with the SLA that informs the public (and other potential buyers or creditors) of your claim.

This way, you legally prevent the seller from carrying out any further transactions with the property (like selling it to another party or taking out another mortgage) without your knowledge while the transaction is being finalised.

Yes, you have to pay for that. The HDB Caveat Registration Fee is typically $64.45 (inclusive of GST).

Property Agent’s Commission (Approx. 1%)

If you use a property agent to help you buy a resale flat, you will also need to factor in the Agent’s Commission, typically a percentage of the purchase price.

The typical property agent’s commission fee rate for an HDB resale flat buyer in Singapore is generally 1% of the purchase price.

It is crucial to understand that commissions are not fixed or regulated by law and are always negotiable between you and your appointed agent.

HDB Fire Insurance

After you move in, you’ll have smaller, ongoing costs such as HDB Fire Insurance from Etiqa (mandatory with an HDB loan).

HDB S&CC (Under $120)

Finally, there’s the monthly Service & Conservancy Charges (S&CC) for estate upkeep. Check with your town council for the fees. Fees vary by HDB flat types too!

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