Closing Costs On Property Transactions

Costs incurred at closing

• Stamp duties. For new purchases, and based on the purchase price

1. 1st $180k – 1%
2. Next $180k – 2%
3. Thereafter – 3%

• Legal fees. Generally between $1500 to $5000. Factors that affect the fees include the type of property, choice of lawyer. Legal fees can be paid from your CPF account which your lawyer should handle for you.
• Settlement of cash over valuation. When you have purchased a house above the valuation price, you have to pay the difference to the relevant people before the housing loan will be disburse for the proper purchase of the property.
• Fire insurance. Property loan lenders would want you to unsure your property against fire. Usually the insurance is included in your housing loan package for a period ranging from 1 to 5 years.
• Home protection scheme. Subject to eligibility, CPF requires all members to be insured under HPS if they are using CPF funds to pay for the HDB housing loan monthly installments.
• Minimum cash portion for property. 5% for first property, 25% for second property, 25% for third property.

• Additional Buyers Stamp duties (ABSD). For new purchases, and based on the purchase price

1. Singapore citizens – 7% on second property, 10% on third property
2. Permanent Residents – 5% on first property, 10% on second property, 10% on third property
3. Foreigners – 15% on first property, 15% on second property, 15% on third property

• Additional buyer stamp duties (ABSD) does not apply for citizens of the following countries

1. America USA
2. Norway
3. Switzerland
4. Iceland
5. Liechtenstein