This research is accurate as at 19 May 2017 (see also the respective dates of the sources). It relates to the Singapore context. (Singapore is an island city-state at the tip of peninsular Malaysia in Southeast Asia).
The list of costs is bewildering. To bring things to life, I shall focus on a hypothetical example from 99.co guides: Everything to know about paying for a resale flat. (20 Sep 2016) by Zareen B. You may also refer to the site for the example of the bank loan model purchase. [For accuracy, I shall indicate cross references as far as possible.]
The case study focuses on a young married couple with total monthly income of $6k (where $1k = $1000). They hold $20k in their CPF accounts; possessing access to a $30k Family Grant. Valuation of their desired 3 room HDB resale equaled the sale price ($400k) therefore no (additional) COV (Cash-over-valuation)^ is needed for payment. The approved HDB Loan would limit its financing to 90% of the purchase price under a 25 year timeframe.
Grant of Option/Booking fee [cash] – $1k
Valuation fee [credit card] – $199.25 (lower price for 1/2 room flats – see Costs and Fees: Resale from HDB, updated 23 Aug 2016.)
Deposit [cash] – $4k (Grant of Option and Deposit total not more than $5k)
Resale application administrative fee [credit card] – $80 (lower price for 1 or 2 room flats – see Costs and Fees: Resale from HDB, updated 23 Aug 2016.)
Initial Payment [CPF] – $40k (10% of purchase price; first payment is higher for bank loan financed purchase)
Stamp duty on option [Cash/CPF] – $6.6k [See Inland Revenue Authority of Singapore (IRAS). Buyer’s Stamp Duty (BSD), updated 18 May 2015.]
Stamp duty on mortgage [Cash/CPF] – $500 [See IRAS. Mortgage Duty, updated 3 Jul 2015.]
Conveyancing fees [Cash/CPF] – $1,009.01
Lease in-escrow registration fees [Cash/CPF] – $38.30
Mortgage in-escrow registration fees [Cash/CPF] – $38.30
Caveat registration fees [Cash/CPF] – $128.90
Title search fees [Cash/CPF] – $10.40
Home protection scheme [Cash/CPF] – $241.56 (annual)
Fire Insurance [Cheque] – $4.50
Balance of purchase price [Loan/CPF/Cash] – $355,000
Total – $408,850.22
Post deduction (of Family Grant + HDB Loan + CPF), the couple still has to fork out $3,850.22 in cash.
Further sites for research/reference:
Buying a home. (7 Dec 2016). http://www.moneysense.gov.sg/Life-Events/Buying-a-Home.aspx. MoneySENSE. Monetary Authority of Singapore.
Ability to Pay. (no date). http://www.hdb.gov.sg/cs/infoweb/residential/financing-a-flat-purchase/step-by-step-guide-to-financial-planning/ability-to-pay. Housing Development Board. Singapore. Having a home property according to the HDB would among other things, entail monthly bills for:
- Cash payments for housing loan instalments
- Service & Conservancy Charges
- Utilities and services bills
- Insurance premiums
Adam R. (4 May 2016). 3 questions to ask when buying resale HDB for the first time. https://www.99.co/blog/singapore/resale-hdb-for-the-first-time/. 99 Pte Ltd.
[The site lists 9 steps]. Resale HDB flats: How to buy. (27 Jan 2016). https://www.ecitizen.gov.sg/Topics/Pages/Resale-HDB-flats-How-to-buy.aspx. Government of Singapore.
Channelnews Asia. COVs fall to zero for first time since 2006: SRX. (6 Mar 2014). http://www.todayonline.com/singapore/covs-fall-zero-first-time-2006?singlepage=true. TODAY.
^Ong Hwee Hwee. (10 Mar 2014). Singapore Budget 2014: 5 things about cash-over-valuation or COV. http://www.straitstimes.com/singapore/singapore-budget-2014-5-things-about-cash-over-valuation-or-cov. The Straits Times.