Buying a Property in Singapore: 11 Fees & charges you must first know

In the process of acquiring a home, the spotlight often shines on the immediate costs required to secure the property.

Yet, lurking beneath the surface lies a multitude of hidden costs and fees that may have escaped your attention during the planning phase.

From inconspicuous application fees to renovation expenses, explore the aspects you might have unwittingly disregarded in your property procurement journey whether it is for procuring a HDB flat or private property in order to safeguard your budget from unforeseen strain.

What is Upfront Cost when purchasing a house?

“Upfront costs” refer to the initial expenses or payments that are required at the beginning of a process or transaction.

In the context of property purchase, upfront costs would include the immediate expenses that need to be paid when buying a property, such as the down payment, stamp duties, legal fees, and other initial charges.

These costs are also typically paid at the outset of the transaction.

11 Fees to pay when buying a house in Singapore

Here is a list of 11 fees you can expect to pay when buying a house in Singapore:

1. Application Fee (for HDB)
2. Option to Purchase (OTP)
3. Buyer's Stamp Duty (BSD)
4. Additional Buyer's Stamp Duty (ABSD)
5. Conveyancing Fees
6. Survey Fee
7. Property agent commission
8. Renovation costs
9. Mortgage Home Loan Interests
10. HDB S&CC or Condo MCST Fees
11. Home Feng Shui consultation

1. Application Fee (HDB only)

The primary payment upon purchasing an HDB flat is the application fee, which varies based on the type of flat:

HDB Build-to-Order (BTO) flats' application fee is $10, while the application fee for HDB Resale flats amounts to $40 for 1- and 2-room flats, and $80 for 3-room flats and larger units.

• HDB BTO application fee: $10
• HDB Resale 1 & 2-room flats: $40
• HDB Resale 3-room & larger flats: $80

You generally do not need to pay an application fee when purchasing a condominium in Singapore like HDB flats as condos are typically private properties and are not subject to the same application fee structure.

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2. OTP (Option to Purchase)

OTP (Option To Purchase) refers to a legal document that gives you the exclusive right to purchase a property from the seller at a specific price within a predetermined period of time, usually 14 days.

• HDB OTP: $1,000 estimated
• Condo OTP: 1% of purchase price

You pay a consideration fee, which is a small percentage of the property’s purchase price, to the seller in exchange for this option.

In the event you decide not to proceed with the purchase, the seller retains the authority to forfeit the option fees.

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3. Buyer's Stamp Duty (BSD)

Payment of Buyer’s Stamp Duty (BSD) is mandatory for documents related to the transfer, sale, and purchase of properties situated in Singapore.

How is BSD calculated?

BSD is calculated based on either the purchase price indicated in the document to be stamped or the property’s market value (whichever amount is higher).

All information from IRAS website. *For property purchases on or after 15 Feb 2023, rounded down  to  the nearest dollar, subject to a minimum duty of $1.

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4. Additional Buyer's Stamp Duty (ABSD)

As long as you are purchasing a house in Singapore, you will need to pay Buyer’s Stamp Duty (BSD). Then, if you are buying your second (third, fourth, or fifth etc.) property in Singapore, you will have to pay the Additional Buyer's Stamp Duty (ABSD) as well.

While the Buyer’s Stamp Duty (BSD) rates are generally the same for both HDB flats and private properties such as condos, there might be some differences in the calculation of Additional Buyer’s Stamp Duty (ABSD) for HDB flats and condos, as ABSD rates can vary based on factors like residency status and the number of properties owned.

*Information from IRAS website. ABSD is to be rounded down to the nearest dollar, subject to a minimum duty of $1.

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5. Conveyancing Fees

What is conveyancing in the context of property? Conveyancing involves the legal procedure of transferring the house's title deed into your name from the seller’s name.

This means you will need to find a conveyancing lawyer to help you with the process.

Conveyancing Lawyer for Private Properties

When dealing with a condominium (or private properties), you will be required to enlist your personal conveyancing lawyer. The conveyancing expenses for condos tend to be slightly elevated, ranging from an average of $2,300 to $3,200.

For HDB purchases, you may engage HDB’s solicitor to act for you.

Engaging HDB doesn't mean it's free!

HDB Conveyancing Fees Calculation

• First $30,000: $0.90 per $1,000
• Next $30,000: $0.72 per $1,000
• Remaining Amount: $0.60 per $1,000
• *The fee is rounded up to the next dollar, before GST.
• *The minimum legal fee chargeable is $21.60 (inclusive of GST).

Should you engage HDB’s services for the acquisition and/or mortgage of your flat, you will have to pay the legal charges, including the HDB Conveyance fee and Registration fees.

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6. Survey Fee

A survey fee is payable to the surveyor inspecting the condition and value of your property. The survey fee cost varies based on the type of property you’ve acquired, with the anticipated expenses outlined below for both HDB flats and condominiums:

*Prices listed here includes GST

Condominium & private property survey fees

For those looking to purchase condominiums, the payment for the survey fee is similarly determined by the type of unit and is intended to cover the expenses of hiring professional surveyors. Survey fees for condominiums and private properties typically cost from $250 to $450.

Survey fees can be paid via CPF or cash

This payment is made to the lawyer either through CPF or in cash, in addition to the legal fees. The cost typically falls within the range of $250 to $450 and will be clearly indicated in your agreement.

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7. Property agent commission

Homebuyers should also keep in mind the agent commission expenses. The prevailing norm in the market is for property agents to receive a commission ranging from 1% to 3% of the transacted price.

This payment must be made in cash, and it’s important to note that CPF Ordinary Account (OA) funds cannot be used for this purpose.

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8. Renovation costs

Last but not least in our upfront costs, is a cost that resides in the subconscious of many, yet its magnitude might not always be thoroughly taken into account: the expenses for renovation.

Renovations costs: $20,000 to $70,000 on average

The expenses associated with home renovations typically range from $20,000 to $70,000, contingent upon various factors such as the size and type of the dwelling, the materials employed, the existing condition of the home, and other considerations.

Naturally, more lavish home remodeling endeavors can effortlessly exceed the threshold of $100,000.

Among the most favored home improvement projects in Singapore is the process of dismantling walls to establish an open-plan living area, crafting fresh entrances and windows, and other similar enhancements aimed at markedly enhancing the home’s aesthetics and ambiance.

This type of project can incur expenses ranging from $500 to $1,000 depending on several factors such as the size of the wall.

Read more: Home Renovation Costs: How much does HDB renovation cost in 2023?

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9. Mortgage Home Loan Interest

Next, let’s take a look at some of the recurring costs you may expect. Recurring costs are ongoing expenses that need to be paid at regular intervals, typically associated with the maintenance, operation, and use of various services.

Although home loan interest rates might appear inconsequential in certain instances due to their seemingly modest percentages, it’s vital to bear in mind that they can substantially contribute to the overall cost of your home over an extended period.

• HDB Loan Interest Rate: 2.6%
• DBS Home Loan Fixed Interest Rate: 3.75%
• OCBC Home Loan Fixed Interest Rate: 3.75%
• *Figures accurate as at 26 Sep 2023

To lower the interest amount you incur, you have the option of either striving to expedite the repayment of your loan or considering loan refinancing during periods of lower interest rates to guarantee that you consistently benefit from the most competitive rates available in the market.

Read more: HDB Loan vs Bank Loan - Which is better for me?

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10. HDB S&CC Fees, Condo MCST Fees

Maintenance fees! Whether you live in HDB or a swanky condominium, you will have to pay someone out there to clean the floors, paint the walls, clear the trash, repair the lifts, and... umm... clean the swimming pools.

For HDB dwellers, it's called the town council HDB S&CC (Service and Conservancy Charges) fees. For the condominium-dwellers, it's called the condo maintenance or MCST (Maintenance and Management) fees - generally a big avenue for dispute and conflict during condo Annual General Meetings (AGMs) since these fees can rack up high.

Condo Maintenance MCST Fees

If you purchase a condo, you’ll be responsible for regular maintenance fees payable either on a monthly or quarterly basis. These fees are allocated for the maintenance and operation of amenities within your housing estate, including facilities like swimming pools and gyms.

Condo maintenance fees can amount to several hundred dollars per month, regardless of whether you utilize the provided amenities. Consider, for instance, a monthly upkeep fee of $400. However, bad days will come when the lift breaks down, and a total lift replacement is required. Then, you might be presented with a hefty $3,000 or $4,000 monthly for a quarter or two.

While this might not impose a substantial burden on your finances presently, over the course of a decade, this sum would accumulate to $48,000 (without accounting for potential increases in maintenance fees).

HDB S&CC Fees

Conservancy Charges are akin to HDB’s version of maintenance fees. Aside from the type of flat you possess, these expenses are also contingent upon the area you reside in. They typically cost $63 to $84 per month.

The funds collected are allocated for the overall maintenance of your community, encompassing tasks like lift upkeep, grounds fumigation, and estate cleaning.

Read more: HDB Conservancy Charges increased from July 2023

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11. Feng Shui Master for House

Lastly, let’s discuss a cost that some individuals might overlook until they actually receive their keys: Feng Shui consultation for properties. Although Feng Shui is a traditional practice with historical roots, it remains extensively embraced in Singapore.

The essence of Feng Shui revolves around fostering positivity and harmony in one’s surroundings.

Given the array of Feng Shui methodologies and diverse practitioners in this field, the expenses associated with such consultations vary significantly. This variance is particularly influenced by factors such as the type and dimensions of your property.

This expense can span from the ‘relatively budget-friendly’ three-digit range to primarily four digits per consultation.

Read more: Feng Shui Master Prices for HDB, Condo, Landed House Consultation

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It’s crucial to bear in mind that the expenditure on your new home extends beyond the down payment. Thus, ensure you possess adequate cash reserves and CPF savings before embarking on your significant purchase to accommodate all the aforementioned hidden expenses.

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