Buying a BTO flat in 2023? Here's a complete cost breakdown
PHOTO: HDB
PUBLISHED ONMay 14, 2023 10:55 AMByPooja Khandelwal
There is a lot to consider when buying a Build-to-Order (BTO) flat. Eligibility and locations are some of the key factors to consider but the biggest worry has to be the cost and how much buyers must set aside before they can rightfully own a BTO that they can call home.
If you are a first-time homebuyer hoping to land a BTO flat, read on to find out all the costs that you need to consider before sending in your application to the Housing Development Board (HDB).
Estimated cost to buy a BTO flat in Singapore 2023
In case you are wondering what the prices for BTO flats in Singapore are, here are some indicative prices that are based on BTO launches in February 2023.
How much does it cost to buy a BTO?
| BTO Flat Size | Mature Estate Price Range | Non-Mature Estate Price Estate |
|---|---|---|
| Two-room flat | $185,000 | $97,000 |
| Three-room flat | $326,000 to $372,000 | $187,000 to $190,000 |
| Four-room flat | $459,000 to $541,000 | $288,000 to $291,000 |
| Five-room flat | NA | $401,000 |
| Source: HDB | ||
To apply for a BTO flat, you do it online on HDB InfoWEB whenever there is a launch. Because there is always an overwhelming response, if you want a higher chance of getting a BTO flat, try applying for flats with lower application rates. The number of applications for each type of flat will be updated regularly on the HDB InfoWEB to ensure you’re aware of how many people you are competing with.
Check if you are eligible for CPF grants
Buying a new flat can be a heavy financial commitment, which is why you should try to reduce the cost with CPF Grants as much as you can. The current grant schemes offer up to S$80,000 to eligible buyers who submitted their BTO applications after September 2019.
This not only helps with buyers’ cash flow, it also reduces cash outlay. If you are applying for a flat as a first-time household, you may be eligible for Enhanced CPF Housing Grant (EHG) of up to S$80,000 depending on household income as follows:
| First Time Families and Singles under Joint Singles Scheme | Singles Under Single Singapore Citizen Scheme | ||
|---|---|---|---|
| Average Monthly Household Income | Grant Amount | Average Monthly Household Income | Grant Amount |
| Not More Than S$1,500 | $80,000 | Not More Than $750 | $40,000 |
| $1,501 - $2,000 | $75,000 | $751 - $1,000 | $37,500 |
| $2,001 - $2,500 | $70,000 | $1,001 - $1,250 | $35,000 |
| $2,501 - $3,000 | $65,000 | $1,251 - $1,500 | $32,500 |
| $3,001 - $3,500 | $60,000 | $1,501 - $1,750 | $30,000 |
| $3,501 - $4,000 | $55,000 | $1,751 - $2,000 | $27,500 |
| $4,001 - $4,500 | $50,000 | $2,001 - $2,250 | $25,000 |
| $4,501 - $5,000 | $45,000 | $2,251 - $2,500 | $22,500 |
| $5,001 - $5,500 | $40,000 | $2,501 - $2,750 | $20,000 |
| $5,501 - $6,000 | $35,000 | $2,751 - $3,000 | $17,500 |
| $6,001 - $6,500 | $30,000 | $3,001 - $3,250 | $15,000 |
| $6,501 - $7,000 | $25,000 | $3,251 - $3,500 | $12,500 |
| $7,001 - $7,500 | $20,00 | $3,501 - $3,750 | $10,00 |
| $7,501 - $8,000 | $15,000 | $3,751 - $4,000 | $7,500 |
| $8,001 - $8,500 | $10,000 | $4,001 - $4,250 | $5,000 |
| $8,501 - $9,000 | $5,000 | $4,251 - $4,500 | $2,500 |
| More Than $9,000 | NA | More Than $4,500 | NA |
Full cost of buying a BTO flat
There are seven key cost areas to consider when buying a BTO flat in Singapore. Remember to include the following as you create a budget:
- Application fee
- Option fee
- Downpayment
- Legal fees
- Home insurance
- Home loan repayments
- Renovation and furnishing costs
BTO cost breakdown
| Types of Cost | Description | Estimated Amount |
|---|---|---|
| Application fee | Upfront fee for applying for a BTO flat. | $10 |
| Option fee | An option fee must be paid to confirm the purchase; this is part of the downpayment. |
|
| Downpayment | The amount payable will depend on whether you are:
|
10 per cent of the home price. Pay with CPF and/ or cash. |
|
|
|
| Legal fee | Legal fees include processing your paperwork for property ownership include:
|
Stamp duty is calculated as:
You can also use the Stamp Duty Calculator from the Inland Revenue Authority of Singapore (IRAS). Conveyancing fees are calculated as:
The minimum conveyancing fee chargeable is $20 and it is subjected to GST. $64.45 to be paid to the Singapore Land Authority. |
| Home Insurance | Flat owners with outstanding HDB loans must buy and renew the HDB fire insurance. | Five-year premiums (including 8per cent GST) range from $2.73 for 2-room flats to $8.18 for Executive flats |
- $2,000 for four-room and bigger
- $1,000 for three-room
- $500 for two-room
- Taking an HDB housing loan or Not taking any housing loan
- Taking a housing loan from a bank
- 20 per cent of the home price for loan ceiling of 75 per cent (5 per cent minimum cash payment and remaining 15 per cent using CPF and/or cash)
- 20 per cent of the home price for loan ceiling of 55 per cent (10 per cent minimum cash payment and remaining 10 per cent using CPF and/or cash)
- Stamp duty for Agreement for Lease
- Conveyancing fees
- Caveat registration fees
- First $180,000: 1 per cent
- Next $180,000: 2 per cent
- Next $640,000: 3 per cent
- Remaining amount: 4 per cent
You can also use the Stamp Duty Calculator from the Inland Revenue Authority of Singapore (IRAS).
Conveyancing fees are calculated as:
- First $30,000 at $0.90 per $1,000 or part thereof
- Next $30,000 at $0.72 per $1,000 or part thereof
- Remaining amount at $0.60 per $1,000 or part thereof
The minimum conveyancing fee chargeable is $20 and it is subjected to GST.
$64.45 to be paid to the Singapore Land Authority.
ALSO READ: Uncovering 'undervalued' BTO flats: 26 HDB towns with the biggest BTO-resale price gaps
Mortgage repayments
When you take up a HDB housing loan, you will be granted a concessionary interest rate pegged at 0.1 per cent above the prevailing CPF Ordinary Account (OA) interest rate and this will come up to 2.6 per cent per annum. Note that the rate may be adjusted in January, April, July, and October, in line with CPF interest rate revisions.
However, to qualify for a HDB loan, you and the co-owners of the household must meet a list of eligibility criteria based on areas such as nationality, household status, income ceiling.
As such, even though HDB loans may offer better rates, some may turn to bank loans since there are fewer restrictions. To find the best home loans from banks, you’ll need to compare the best home loans in Singapore. You may even want to use our home loan calculator to help you estimate interest costs and monthly payments.
Renovation and furnishing costs
Since BTO flats are new and require renovation, you can save on your renovation costs. However, if you need a general renovation budget guide, consider setting aside the following for your BTO flat:
- $38,850 to $44,000 for a three-room flat
- $43,000 to $45,000 for a four-room flat
- $45,000 to $52,000 for a five-room flat
This article was first published in ValueChampion.