5 Things First Time Homebuyers in Singapore Must Know

I met up with the children of my clients recently. They are in their 20s and thinking of buying their first home. Like many first time homebuyers in Singapore, they felt confused about the different options and wanted to know where to start.

If you are planning on buying your first home in Singapore, checkout this article on the 5 things you must know before embarking on your home search.

• How much you can borrow

• Your available cash and CPF

• Where you want to stay

• Timeline - When do you want to move into the property

• Your long term goal

• Frequently Asked Questions (FAQ)

1. How much you can borrow

Before you look at any home, you need to know how much the bank will lend you.

In Singapore, the Monetary Authority of Singapore (MAS) sets rules that affect your loan amount, whether you are buying an HDB flat, an EC, or a private property.

Here are the key points to understand:

Total Debt Servicing Ratio (TDSR)

TDSR limits your total monthly loan repayments (including car loans, study loans, credit cards, and your home loan) to 55 percent of your gross monthly income.

If you have existing loans or a lower income, the amount you can borrow for your first home will be lower.

Mortgage Servicing Ratio (MSR)

MSR applies when buying HDB flats (BTO or resale) and ECs.

It limits your property loan repayment to 30 percent of your monthly income.

This is why some buyers qualify for a private condo loan but not an HDB or EC loan.

Loan tenure and age

As you get older, the bank shortens your loan tenure. A shorter tenure means higher monthly instalments, even if your loan amount is small. For most first time homebuyers, the maximum tenure is:

• HDB loan: up to 25 years

• Bank loan: up to 30 years

Loan-to-Value (LTV)

This determines what percentage of the property price you can borrow.

• Bank loan LTV: up to 75 percent if you have no other property loans

• HDB loan LTV: up to 80 percent

For HDB flats with shorter remaining leases, the LTV may be reduced, meaning you need more CPF or cash upfront.

Understanding these rules helps you set a realistic budget before you start viewing units.

2. Your available cash and CPF

Different property types have different downpayment requirements. Your cash and CPF savings will affect the types of properties you can purchase.

Here is a simple breakdown to help first time homebuyers understand how much you need for the different properties type.

HDB Built To Order (BTO) & Resale (With HDB Loan)

• Downpayment is 20 percent of the flat price. You can use your CPF OA entirely for this downpayment, and top up with cash if you don’t have enough.

• CPF Housing Grants are available for eligible buyers. They will be credited into buyer's CPF OA, which can then be used to form part of the downpayment.

  https://www.hdb.gov.sg/residential/buying-a-flat/understanding-your-eligibility-and-housing-loan-options/flat-and-grant-eligibility 

• Other costs including Buyer's Stamp Duty (BSD) and legal fees can be paid using CPF or cash.

• For HDB resale flat, if the valuation is lower than the purchase price, the Cash Over Valuation (COV) has to be paid in cash.

HDB BTO & Resale (With Bank Loan)

• Downpayment is 25 percent of the flat price, of which 5 percent must be in cash and the balance 20 percent can be CPF or cash.

• CPF Housing Grants are available for eligible buyers and they will be credited into their CPF OA, which can be used to form part of the downpayment.

  https://www.hdb.gov.sg/residential/buying-a-flat/understanding-your-eligibility-and-housing-loan-options/flat-and-grant-eligibility

• Other costs include Buyer's Stamp Duty (BSD) and legal fees, which can be paid using CPF or cash.

• For HDB resale flat, if the valuation is lower than the purchase price, the Cash Over Valuation (COV) has to be paid in cash.

Executive Condo (EC)

• EC buyers can only use bank loan for financing.

• Downpayment is 25 percent, out of which 5 percent has to be by cash and the balance 20 percent can be by CPF or cash.

• CPF Housing Grants are available for eligible first-time EC buyers and they will be credited into buyer's CPF OA. This can be used to form part of the downpayment.

  https://www.hdb.gov.sg/residential/buying-a-flat/executive-condominium/cpf-housing-grants

• Other costs include Buyer’s Stamp Duty (BSD) and legal fees. These can be paid using CPF or cash.

Private Condo (New Launch or Resale)

• Private condo buyers can only use bank loan for financing.

• Downpayment is 25 percent, out of which 5 percent has to be by cash and the balance 20 percent can be by CPF or cash.

• Other costs include Buyer’s Stamp Duty (BSD) and legal fees. These can be paid using CPF or cash.

• There are no CPF Housing Grants for private condo buyers.

• For resale condos, even if buyers intend to use CPF to pay the BSD, they must first pay the BSD in cash before applying for CPF reimbursement.

Summary Table for Cash and CPF Needs

3. Where you want to stay

Location is one of the most important decisions for any first-time homebuyer. Your preferred neighbourhood, distance to parents, access to MRT, and daily convenience will influence which type of property is realistic for you.

Here’s how location affects your options across HDB BTO, EC and resale homes (HDB and condo).

HDB Built To Order (BTO)

When choosing a BTO flat, you cannot freely select any neighbourhood you want. Your choices depend entirely on where HDB releases projects during each launch.

• BTO Launch Frequency

  
  

  HDB typically launches BTO projects three times a year, each offering a mix of mature and non-mature estates.

• Typical BTO Locations (Recent and Upcoming)

  
  

  • Mature estates: Bedok, Queenstown, Kallang/Whampoa, Bukit Merah

  • Non-mature estates: Tengah, Woodlands, Choa Chu Kang, Jurong West, Yishun, Sembawang

  • Central locations (Prime/Plus): Ghim Moh, Farrer Park, Kallang

It might not be suitable for buyers who need a specific neighbourhood.

• Prime, Plus and Standard: How they affect your location choice

HDB categorises BTO flats into Prime, Plus and Standard, largely based on location.

• Prime (most central, most restrictions)

  • Located in highly desirable central areas

  • 10-year MOP

  • Subsidy Recovery on resale

  • Stricter eligibility conditions

  • Cannot rent out entire flat

Great locations but are less flexible if you want future mobility.

• Plus (good locations near MRT/towns, moderate restrictions)

  • Also comes with a 10-year MOP

  • Some subsidy recovery

  • Stricter resale rules

Suitable for those wanting convenience but willing to accept tighter rules.

• Standard (most flexible, widest locations)

  • Available in both mature and non-mature estates

  • 5-year MOP

  • No subsidy recovery

  • Easier to sell later and rent out fully after MOP

Best for buyers who prioritise location options and future flexibility.

A BTO flat works best for buyers who are flexible about where they live and do not need to be near their parents, a specific school, or a particular neighbourhood. It is a good option if you are open to staying in new or developing towns and can adapt to the locations released by HDB during each launch.

However, BTO may not be suitable if you have a strong preference for a specific area or if you need to stay close to family for caregiving or support, as you may not always find a BTO project in your preferred location.

Executive Condominiums (EC)

Executive Condos are almost always built in non-mature or up and coming estate where land is more affordable. This means EC buyers need to be open to staying outside central Singapore.

In 2025, there were 2 ECs launches. They are Otto Place at Tengah Plantation and Aurelle of Tampines.

In 2026, we will see Coasta Cabana (Pasir Ris) and Rivelle of Tampines launched in the first half of the year, Other ECs to be launched is at Senja Close and Woodlands Drive.

EC buyers who want to live in the East (Pasir Ris/Tampines) or in a future growth town (Tengah) will find options. But for those who prefer mature areas like Bishan, Toa Payoh or Queenstown, they will have to seek other housing options.

HDB Resale & Resale Condo

If you want to stay in a particular neighbourhood so as to be nearer to your family, school, workplace etc, resale options offer the most control.

Why resale gives the most flexibility

• You can choose almost any housing estate

• Wide range of flat sizes and layouts

• You can filter by exact distance to MRT, parks, malls, or parents’ home

• Ideal for first-time buyers who already know where they want to settle

Proximity Housing Grant (PHG) for HDB Resale

If your priority is staying near parents, resale HDB becomes an even stronger option because of PHG:

• $30,000 grant if you stay with parents

• $20,000 grant if you stay within 4 km of parents

https://www.hdb.gov.sg/residential/buying-a-flat/understanding-your-eligibility-and-housing-loan-options/flat-and-grant-eligibility/couples-and-families/proximity-housing-grant-families

This is a key consideration for many first-time buyers who want convenience, family support or childcare help.

Resale condos offer the broadest location choices

• You can select any district that suits your lifestyle

• Great for buyers who want to live near the city, near your family or in highly sought-after school clusters

• No Minimum Occupation Period (MOP), giving you full flexibility

Summary: How location affects your property type

4. Timeline - When do you want to move into the property

Your timeline - meaning how quickly you need to move into your new home - will play a big role in deciding which property type is suitable for you as a first-time buyer.

Some options require years of waiting because the homes are still being built, while others let you move in within a few months. Knowing this upfront helps you avoid disappointment, plan your next steps, and choose a property that matches your life plans.

Below is a breakdown of the typical waiting time for each option, based on recent BTO, EC and new launch condo timelines, as well as what most buyers experience when purchasing resale homes.

HDB BTO

• Most BTO flats take about 3 to 5 years from application to completion.

• For example, the BTO launch in October 2025 has projects with estimated waiting times around 4 years.

• For those who need a flat sooner, they can choose BTO flats with “Shorter Waiting Time” (SWT). These are units designed to be ready in under 3 years.

• Renovation after collection typically takes about 2 months for a standard BTO flat.

https://www.hdb.gov.sg/about-us/news-and-publications/press-releases/october-2025-bto-sales-exercise

Executive Condominiums (EC)

• New ECs follow a timeline similar to new private condos. After a site is awarded in the Government Land Sale (GLS), it typically takes around 15 months before the developer launches the EC for sale.

• Once buyers book, ECs generally take about 3 to 4 years to complete before you can move in.

• For example, the upcoming Coastal Cabana EC will launch in January 2026, and TOP is expected in 2029.

New Launch Private Condo

• For new condo launches, the typical completion period from launch to TOP ranges from 3 to 4 years depending on size, location and construction speed.

Resale HDB

• Once you find your ideal unit, the paperwork and legal process generally take about 4 months.

• After legal completion, renovation usually takes around 2 months, depending on scope and condition of the flat.

• You could move in within roughly 4 to 6 months from start to finish.

Resale Private Condo

• The resale condo purchase timeline is also relatively short. Once you find your ideal unit, the paperwork and legal process will take around 3 months.

• Renovation takes around 2 months, depending on the existing condition of the unit.

• So from decision to moving in, you might be looking at 5 months.

Summary at a Glance

5. Your long-term plan and eligibility

Before you decide which property to buy, it is important to think about your long-term plans and whether you meet the eligibility rules for each housing type.

This is especially important for BTOs and ECs because they fall under HDB’s subsidised housing framework.

HDB BTO: Only for buyers eligible for HDB subsidies (max two subsidised purchases)

Buying a BTO counts as a subsidised purchase. HDB allows each household to enjoy up to two subsidised housing opportunities in their lifetime.

This means:

• If you or your spouse have already taken one HDB grant or bought a BTO/SBF before, this next BTO will count as your second and last subsidised purchase.

• If you have already taken two subsidised purchases in the past, you cannot apply for a BTO again.

• First-timers have the most priority and best chances of securing a unit.

You should choose BTO only if your long-term plan aligns with using one of your limited subsidised chances.

EC: Eligibility tied to HDB rules and subsidised housing count

Buying an EC also counts as a subsidised purchase, even though financing is by bank loan.

Key points for EC buyers:

• EC buyers must meet HDB eligibility, including household income ceiling and family nucleus requirements.

• Buying a new EC is considered a subsidised housing opportunity (same as BTO).

• Each household can only take up to two subsidised purchases, so buying an EC uses up one of these chances.

• If you have already taken two subsidised purchases (e.g. BTO + resale with grant, BTO + EC), you cannot buy a new EC.

This is important for long-term planning: if you see yourself upgrading later, you need to decide whether using a subsidised chance on an EC fits your future plans.

Resale HDB: Grants are optional, not automatic

Buying a resale HDB flat is more flexible.

• You can choose to take grants (which makes it a subsidised purchase)

• Or choose not to take any grants, so it does not count as a subsidised purchase

If you want to preserve your subsidised chances for BTO or EC later, buying resale HDB without grants keeps your options open.

New Launch & Resale Condo: Flexible, but comes with a 30-month wait-out period before BTO or EC

Private properties offer the most flexibility because they do not fall under HDB rules. There is no income ceiling, no MOP and no subsidised purchase count. You can buy and sell freely according to your needs.

However, if your long-term plan includes applying for a BTO or new EC, you must be aware of the 30-month wait-out period.

Here’s what this means:

• If you currently own a new launch condo or resale condo, you must sell it first.

• Thereafter, you need to wait 30 months before you can:

  • Apply for a BTO flat

  • Apply for a new EC

This rule ensures that subsidised housing goes first to those who do not own private property.

Why this matters for planning

If you think you may want a BTO or EC in the future, buying a condo now will delay that plan by at least 2.5 years after selling the unit.

For some buyers, this is perfectly fine; for others, this could disrupt their timeline.

Private condos remain the most flexible option if you want:

• Freedom to choose any location

• No eligibility conditions

• No income ceiling

• No MOP or rental restrictions

But it is important to factor in the 30-month wait-out period if subsidised housing is part of your future plans.

Choosing based on long-term plans

Your property choice should fit your next 5–10 years. Consider these:

• Do you plan to start a family or stay close to parents?

• Will you eventually want to upgrade to a bigger home or private property?

• Do you want to keep your subsidised housing chances for later?

Thinking ahead ensures you pick a home that supports your lifestyle now and still keeps your options open for the future.

Frequently Asked Questions (FAQ) for First-Time Homebuyers in Singapore

1. What is the difference in waiting time between BTO, EC, new launch condo and resale homes?

BTO, EC and new launch condos usually require a waiting time of 3 to 5 years because they are still under construction. Resale HDB flats and resale condos are much faster, and most buyers can move in within 3 to 6 months.

2. How long does a BTO flat take to complete?

Most BTO flats take around 3 to 5 years to complete. Some Shorter Waiting Time (SWT) BTO flats may be ready in under 3 years.

3. How long does an Executive Condo (EC) take before owners can move in?

New ECs usually take 3 to 4 years to be completed after launch. Buyers can move in only when the project obtains TOP (Temporary Occupation Permit).

4. How long do new launch private condos take to complete?

New launch condos take around 3 to 4 years to complete, depending on the size and location of the development, as well as construction schedule.

5. How long does it take to move into a resale HDB or resale condo?

Most buyers can move in within 3 to 6 months. The purchase completion takes around 3 to 4 months, followed by 1 to 2 months of renovation.

6. How much cash and CPF do I need to buy a BTO flat?

If you take an HDB loan, the downpayment is 20 percent and can be fully paid with CPF. If you take a bank loan, you must pay 5 percent in cash and 20 percent using CPF or cash.

7. How much cash do I need for an EC or private condo?

All ECs and private condos must be bought using a bank loan. The downpayment is 25 percent of the price, out of which 5 percent must be paid in cash.

8. Are there grants for EC buyers?

Yes. First-time EC buyers may receive CPF Housing Grants of up to $30,000, depending on income and household eligibility.

9. What is the Proximity Housing Grant (PHG) for resale HDB?

First-time homebuyers can receive up to $30,000 if they live with parents, or up to $20,000 if they live within 4 km of their parents.

10. What is TDSR and how does it affect my home loan?

TDSR (Total Debt Servicing Ratio) limits your total monthly loan repayments to 55 percent of your income. This affects how much you can borrow.

11. What is MSR and when does it apply?

MSR (Mortgage Servicing Ratio) limits your property loan repayment to 30 percent of your income. It applies only to HDB flats and ECs.

12. What is the LTV limit for home loans?

For bank loans, the maximum Loan-to-Value (LTV) is 75 percent if you do not have any other property loans. For HDB loans, the LTV is up to 80 percent.

13. Can I buy a BTO or EC after owning a private condo?

Yes, but only after selling the private property and serving a 30-month wait-out period before applying for a BTO or new EC.

14. Do BTO flats in Prime or Plus locations have more restrictions?

Yes. Prime and Plus flats have a 10-year Minimum Occupation Period and subsidy recovery rules. They also have stricter resale conditions.

15. Which property type is best if I need to move in quickly?

Resale HDB flats and resale condos are the fastest. You can usually move in within 3 to 6 months.

Conclusion

Buying your first home is a big milestone, and it becomes much easier when you understand your options, your eligibility and the timeline that fits your life.

Whether you choose a BTO, EC, resale HDB or a private condo, the most important thing is making a decision that supports your long-term goals and gives you confidence for the years ahead.

I have helped many first-time homebuyers understand their finances, compare their options and plan their next steps with clarity. If you would like personalised guidance or want to understand which path suits you best, I would be happy to walk through with you.

Make an appointment with me for a chat! Let’s explore your first home journey together and find the option that truly fits you.

Make An Appointment Here

Related Readings

1) What To Look Out For When Buying A HDB Flat In Marine Parade? 

2) Should You Keep Or Sell Your Ageing HDB Flat?

3) Journey Of My Real Estate Agent Career

About The Author

Vivian is an experienced real estate agent who has been in the industry since 2002.

Over the years, she has transacted numerous property deals including HDB & private properties. She is well-versed in policies and regulations involving the sale and purchase of residential properties. She has also handled many transactions involving complicated situations like contra, divorce, administration/probate cases, and decoupling / part-share purchase.

Vivian is also a mother to 2 boys. Being a real estate mom allows her to spend much time with her children as they were growing up. Both boys are avid footballers representing their schools and clubs. She loves watching their games and hardly misses a game whenever they play.

Vivian is an active real estate salesperson and team leader. Call her at 98577714 for your real estate matters, or if you are looking to join the real estate industry.