Marriage vs. Mortgage in Singapore: 5 Key Factors Young Couples Must Consider

In Western countries, it’s common for romantic partners to live together, whether they are married or not. But in Singapore, getting married and buying a home often go hand in hand.

In fact, many young Singaporean couples apply for a Build-To-Order (BTO) flat early in their relationship, committing to buying a home together before marriage, because the wait for a BTO application to be completed is very long. Some might say that Singapore’s “BTO proposal” isn’t romantic, but we understand the practical reasons behind it.

Whether you choose to get married after taking out a home loan or buy a house before walking down the aisle, you should make your decision based on your actual circumstances. Both getting married and buying a home require a significant amount of money, so it’s wise to plan reasonably before making a choice. We have provided a cost breakdown for your reference.

Get Married First or Buy a House First in Singapore? Here’s a Cost Breakdown

Cost of a BTO Flat in Singapore

The “starter home” for Singaporean couples is a 4-room BTO flat. In 2020, Singaporeans aged 25 to 34 accounted for 60% of 4-room flat buyers.

Let’s assume you successfully purchased a 4-room flat in Kallang/Whampoa during the November 2022 BTO launch. If you decide to take an HDB loan with an 80% LTV (Loan-to-Value) ratio, you’ll need to make a down payment of S$101,800 (which can be paid using your CPF Ordinary Account savings). This does not include other costs like legal fees and stamp duty.

Alternatively, you could opt for a bank loan, where your upfront costs would be higher due to a lower LTV limit of 75%. This means a minimum down payment of S$127,250, of which at least 5% (i.e., S$25,450) must be in cash.

Of course, you also need to consider the long-term monthly mortgage payments. But since this article focuses on the timing of wedding expenses versus major property expenditures, we will focus on the upfront costs.

Cost of Getting Married in Singapore

For most couples, a wedding is a once-in-a-lifetime testament to their love. We don’t want to spoil the joyous atmosphere, but wedding costs are one of the biggest expenses a couple will face.

The table above shows the potential costs for a couple’s mid-range wedding. We are not wedding experts, so we have adapted this table from The Wedding Vow SG. We have also excluded items with variable costs, such as photo booths, car rentals, etc.

Typically, the wedding banquet accounts for the largest portion of the wedding costs. Assuming you host 150 guests, your banquet could cost up to S$40,000. Other expenses include wedding photography, the bridal package, and your wedding rings. These costs vary depending on factors like the number of gown changes, the type of wedding bands, and the location for your pre-wedding photoshoot.

Depending on the scale of the wedding you want to have, you can expect to spend an average of S$29,850 to S$82,300 on your wedding!

So, should you spend your money on a wedding or on buying a house?

4 Key Factors to Consider for Marrying or Buying a House First in Singapore

1. The Long Waiting Period for BTO Flats

Construction delays caused by the pandemic mean that the waiting period for some BTO flats can be as long as seven years. This is the main reason why many couples in Singapore choose to apply for a flat before their wedding.

Unmarried couples are eligible to apply for a BTO flat under the Fiancé-Fiancée Scheme, and HDB also offers various grants and subsidies to married couples, as long as you can produce your marriage certificate within three months of the flat’s completion.

For example, couples with an average monthly household income of no more than S$9,000 can enjoy an Enhanced CPF Housing Grant (EHG) of S$5,000 to S$80,000. Young couples who apply for a BTO flat while studying or serving National Service (i.e., with no income) can qualify for a deferred income assessment, meaning their income will be assessed just before they collect the keys to their new home.

2. Information on HDB Resale Flats

For couples who are keen on BTO flats, the reason is simple—they are more convenient to apply for.

Unlike BTO flats which require a construction period, resale flats can be sold within a few months. Therefore, the timing of buying a resale flat is more critical: if you plan to get married and move into your resale flat at the same time, all your expenses will be incurred simultaneously.

Resale flats are also generally more expensive than BTO flats (as their cost is not subsidized by the government), although buyers may be eligible for more grants, such as the Proximity Housing Grant (PHG).

This means you must be prepared for your wedding expenses, as well as the upfront costs of buying a home, such as the down payment, renovations, furniture, etc.

3. Private Properties Require a Higher Down Payment

Private properties under construction (BUC, typically new launch projects) take a few years or months to complete. This means you can make progressive payments according to a schedule, i.e., in installments based on construction progress. This will reduce your financial pressure.

If you are buying a resale private property, the situation is similar to buying a resale HDB flat. It is already completed, which means you will also need to pay the down payment within a short period.

Furthermore, it’s worth noting that not only are private properties more expensive, but you can only get a loan from a bank, which has a lower LTV limit of up to 75%. This means that even if you apply for the maximum 75% loan, you still have to come up with a 25% down payment, of which at least 5% must be paid in cash.

4. Where Can Married Couples Without a Shared Home Live?

Suppose you decide to put your home-buying plans on hold. The next question is whether you will continue to live with your parents or rent a place temporarily.

It’s a good option if you can live with your or your partner’s parents until you have enough savings to move out. But let’s say you decide to rent in the meantime, how much would that cost?

A search for “3-room HDB flat for rent” on Anjia SG shows that rents range from S$2,200 to S$5,500. And this doesn’t even take into account agent fees, utilities, and other expenses.

Conclusion: Don’t Rush to Get Married or Buy a House First

The complex question of whether to get married or buy a house first requires considering many factors. The best answer for you depends not only on your financial situation but also on your personal preferences and emotional readiness.

While buying a home first (especially a BTO flat) and getting married later seems to be the typical route for most Singaporeans, we definitely do not recommend rushing into it.

Buying a house before marriage carries significant risks. If things go wrong and you break up with your partner (knock on wood!), you will have to forfeit the property you intended to buy together, which could result in hefty penalties, such as the option fee, stamp duty, and down payment.

The best approach is to first choose the option that suits you best and then plan for it financially. If you feel that your relationship with your partner has progressed to the point where you can buy a home together, and your finances allow for it, then go for it!

Don’t forget to discuss important financial issues with your fiancé(e) when buying a home, such as the percentage of CPF that family members will use for the down payment/monthly installments of the HDB flat, and who will be the legal owner. Without clarifying these issues, conflicts and legal problems may arise over time.

If you feel pressured and want to put things on hold, that’s okay too. You can seek other arrangements while waiting for the right time.

If you are waiting for your BTO flat to be completed, you can consider living with your or your partner’s parents. Alternatively, you can also rent a place to start your own family. Under the Parenthood Provisional Housing Scheme (PPHS), married or engaged couples can rent a flat while waiting for their HDB BTO flat to be completed.

We sincerely wish you and your partner all the best on your journey to building a family! If you would like more guidance, whether it’s finding your ideal property, comparing mortgage rates, or seeking specific advice for your situation, our mortgage experts are always ready to help.

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