For many people living in Singapore, the question “Can I buy a brand new condominium while owning an HDB flat?” often becomes a persistent concern. Today, as a seasoned local property agent in Singapore, I will answer this question for you.
It’s important to clarify that only Singapore Citizens can own both an HDB flat and a private condominium simultaneously. If you are a Singapore Permanent Resident (PR) who currently owns an HDB flat and wishes to purchase a condo, you must sell your HDB flat within six months of acquiring the condo. So, as a Singapore Citizen, how can you purchase a new condo without selling your HDB flat? Below are some essential conditions for buying a condo while owning an HDB flat for your preliminary reference. If you want a more in-depth understanding of the property purchasing steps and policies, you can contact Leo Kwek, who will provide you with more detailed answers.
Table of Contents
1. Fulfilling the Minimum Occupation Period (MOP)
Regardless of whether you bought your HDB flat from the Housing & Development Board (HDB) or on the open market, you must fulfill a 5-year Minimum Occupation Period (MOP). During this period, you can rent out vacant rooms but not the entire flat. You are also not allowed to purchase any private property, whether locally in Singapore or overseas. Of course, you cannot sell your HDB flat during this period either.
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The 5-year MOP starts from the day you collect the keys to your HDB flat and excludes any period where you were not living in the flat. If you violate the MOP rules, you may face a fine of S$50,000 or have your flat compulsorily acquired by the government.
It is worth noting that the length of the MOP depends on the purchase mode, flat type, and the date you applied for the flat. Please refer to the table below for specific details:
| Purchase Mode | Minimum Occupation Period |
| HDB flats bought directly from HDB, including Build-To-Order (BTO) flats | 5 years |
| Design, Build and Sell Scheme (DBSS) flats bought directly from the developer | 5 years |
| Executive Condominiums (EC) bought directly from the developer | 5 years |
| HDB flats bought under the Selective En bloc Redevelopment Scheme (SERS) | 5 years from the date of occupation, or 7 years from the date of flat selection, including waiting and occupation time; whichever is earlier. |
| HDB flats bought under the Selective En bloc Redevelopment Scheme (SERS) with a portable SERS rehousing benefit | 5 years |
| Resale HDB flats bought from the open market with a CPF housing grant | 5 years |
| 1-room resale HDB flats bought from the open market without a CPF housing grant | No Minimum Occupation Period |
| 2-room or larger resale HDB flats bought from the open market without a CPF housing grant | 5 years |
Additionally, when you first purchase an Executive Condominium (EC), you must adhere to a 5-year MOP. After fulfilling this period, you can sell it to Singapore Citizens and Permanent Residents (PRs). After 10 years, the EC becomes fully privatized and can be sold to foreigners.
2. Paying Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD)
Whether you are a Singapore Citizen, Permanent Resident, or a foreigner, you are required to pay Buyer’s Stamp Duty (BSD) when purchasing property in Singapore.
The BSD is calculated based on the purchase price stated in the document to be stamped or the market value of the property, whichever is higher. The current Buyer’s Stamp Duty rates can be found in the table below:
| Purchase Price or Market Value | Buyer’s Stamp Duty (Residential) |
| First S$180,000 | 1% |
| Next S$180,000 (S$180,001 to S$360,000) | 2% |
| Next S$640,000 (S$360,001 to S$1,000,000) | 3% |
| Amount exceeding S$1,000,000 | 4% |
It is important to note that from December 16, 2021, the Additional Buyer’s Stamp Duty (ABSD) payable on property purchases in Singapore has undergone a new round of adjustments. The specific figures are as follows:
| Singapore Citizens | |
| First residential property | 0% |
| Second residential property | 17% |
| Third and subsequent residential properties | 25% |
| Permanent Residents (PRs) | |
| First residential property | 5% |
| Second residential property | 25% |
| Third and subsequent residential properties | 30% |
| Foreigners | |
| Any residential property | 30% |
| Entities | |
| Any residential property | 35% |
3. Total Debt Servicing Ratio (TDSR) Framework
The Monetary Authority of Singapore (MAS) introduced the Total Debt Servicing Ratio (TDSR) framework to prevent homebuyers from over-leveraging by taking on excessive loans when purchasing property. This rule applies to all residential mortgage loans issued by all financial institutions in Singapore, including banks, moneylenders, insurance companies, and other institutions.
Under the TDSR framework, a buyer can only borrow up to 55% of their gross monthly income. This limit also takes into account all your outstanding debts, such as car loans, personal loans, credit card balances, and student loans. When calculating the home loan amount, banks even include small financial commitments like gym memberships and monthly payments for appliances.
Essentially, your monthly housing loan repayment plus all other monthly financial debts cannot exceed 55% of your monthly income.
4. Loan-to-Value (LTV) Ratio
In addition to the higher Additional Buyer’s Stamp Duty, the government has also lowered the maximum Loan-to-Value (LTV) limit, which is the maximum amount a homebuyer can borrow for a property loan based on the property’s sale price. This is also affected by the number of outstanding housing loans the buyer currently has. The specific LTV ratios and down payment percentages are shown in the table below:
| Loan-to-Value (LTV) Ratio | Minimum Cash Down Payment | |
| With no outstanding housing loan | 75%
55% |
5%
10% *The minimum cash down payment percentages above apply only to Singapore Citizens and PRs. Foreigners are required to pay a minimum cash down payment of 25%. |
| With 1 outstanding housing loan | 45%
25% |
The minimum cash down payment is 25%, regardless of the housing loan amount. |
| With 2 or more outstanding housing loans | 35%
15% |
The minimum cash down payment is 25%, regardless of the housing loan amount. |
⚠️Note: The lower LTV limits (i.e., 55%, 25%, and 15% in the table) apply only if the loan tenure exceeds 30 years, or if the loan period extends beyond the borrower’s age of 65.
The above are some of the basic things you need to know if you already own an HDB flat and wish to purchase a condominium. However, each individual’s situation is different, which may require personalized customization and answers. Therefore, if you are thinking of buying a private condominium, feel free to contact us. We will provide suitable solutions based on your personal circumstances.
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