We are asset planners whom have proven track-records in assisting our customers in fulfilling their desired homes successfully through detailed planning and timeline managment.
Uncertain in choosing which type of home-ownership work best for you? No worries. We will hear you out. Based on your needs, we will handhold you in cherry-picking the right home for you stgree-free, with even a reserve fund.
Why Executive Condominium (EC)?
Executive condo (EC) — best for the “sandwich class”, eventually becomes private
(Source: MoneySmart.sg)
Unlike HDB flats, ECs are built by private developers with all the frills of a private condo, but are first sold as public housing via HDB. This property type is a public-private hybrid that is public for the first 10 years, and private thereafter.
| Buying an executive condominium | |
| Pros | Cons |
| 25% to 35% cheaper than private condos | Income ceiling of $16,000 |
| Eligible for CPF housing grants | Must qualify under one of the HDB eligibility schemes |
| Has the premium facade and facilities of a private condo | Not eligible for HDB loan, so you must pay at least 25% down payment in cash/CPF |
| Considered private after 10 years | 5-year MOP applies |
They’re up to 35% cheaper than “real” condominiums, but are usually at the more “ulu” parts of Singapore, which can be hard if you don’t own a car.
ECs are made for the “sandwich class”, with an income ceiling of $16,000.
The income ceiling for new HDB flats is currently $14,000 (it’s only $21,000 for 3G units), while the income ceiling for ECs is $16,000.
For people whose combined household income is $14,001 or $15,999, the only ways you can get your hands on a new home are to purchase an EC or buy a unit in a private development. The latter is obviously much more expensive, which makes ECs look attractive in comparison.
Of course, you’re still free to buy resale property on the public and private market. But some 4- and 5-room HDB resale flats (especially those in prime areas) can get really pricey too.
Cheaper than a “real” condo, and eligible for CPF housing grants.
As ECs start out under the HDB umbrella, you are still eligible for CPF housing grants — assuming your income is low enough while still enabling you to afford the EC.
First-time applicants who are Singapore citizens and applying as a couple can get between $10,000 to $30,000 worth of CPF housing grants if their combined incomes are $12,000 and below.
Of course, another key draw is that ECs are usually priced significantly lower than full-fledged condos, but include all of the same facilities like swimming pools, gyms and etc.
The reselling rules change when ECs become private after 10 years.
The greatest draw of ECs is surely the fact that while they start out as HDB property, in 10 years’ time they will be officially recognised as private property.
This is where ECs differ the most in value as compared to BTO flats. Other than the bragging rights you’ll have for finally becoming a private homeowner, your flat could become a better investment, because you’ll no longer be bound by HDB restrictions on selling.
From their 6th to 10th years, ECs are sold like regular resale flats; only Singaporeans and Permanent Residents (PRs) can buy them. That said, they will already not qualify for CPF housing grants — only the “direct” buyers (purchasing from HDB) can get grants.
The 11th year is when the ECs go “fully private”. They can then be sold to foreigners and companies. This is a big deal, because it opens up the range of prospective buyers.
However, you’ll have to arrange for your own bank loan.
Whether it’s better to take out an HDB loan or a bank loan is debatable, especially if you actually care about how much interest you’ll be paying.
But with ECs there is no such option. The thing about bank loans is that while you might enjoy lower initial interest rates, you have to fork out more for the downpayment and/or cash/CPF portion, since you can only borrow a maximum of 75% as opposed to 90% for HDB loans.
So aside from an above-average income, you really do need to have quite a bit of cash/CPF savings to cough up the downpayment.
Note that 75% is the theoretical maximum, but if you already have other loans like car loans and whatnot, you might not even be allowed to borrow that much thanks to the Total Debt Servicing Ratio (TSDR).
Not forgetting the Mortgage Servicing Ratio (MSR) of 30%, which is the percentage of your salary that you can use for your home loan repayment.
The 5-year minimum occupancy period (MOP) applies, too.
For ECs, there is a minimum occupancy period too. So just like with HDB flats, you’re not allowed to rent it out (not the entire apartment at least) during the first 5 years.
For more on how to apply for an EC, read our step-by-step guide to buying an EC.
Buying Guide to an Executive Condo (EC) Unit in Singapore
First things first — check the HDB EC eligibility schemes & rules
Before doing anything, you must first check your eligibility to buy an EC. To buy an EC, you will unfortunately have to play by HDB’s rules, which means qualifying under any one of these schemes:
Public scheme
One citizen and at least one other citizen or PR applying as a family nucleus, meaning spouse and kids (if any), parents and siblings (if any), or children under your legal custody (only for widowed/divorced applicants)
Fiancé/fiancée scheme
Fiancé and fiancée, and prepared to register your marriage before taking possession of your EC if applying for additional or special CPF housing grants, or within 3 months of taking possession of the flat.
Joint singles scheme
A group of 2-4 single citizens, all aged over 35.
Orphans scheme
Orphan and siblings who are single (unmarried, divorced or widowed), and have at least 1 deceased parent who was a Singapore citizen or PR.
On top of that, there are restrictions on property ownership and household income.
Property ownership rules
You must not own any property overseas or locally. If you do, you’ll have to dispose of it within 30 months of applying for an EC.
EC income ceiling
For ECs, there’s an income ceiling of $16,000 per household, no matter what scheme you’re applying under.
7 Steps guide to applying for an EC in Singapore
Checked all the boxes? Good. These are the next steps.
| Stage | What to do | Payments needed |
| EC sales launch | Research key information online | None |
| Application | Submit application online or via walk-in (depends on development) | Depends on developer |
| Application outcome | Find out if your application has been successful or not | None |
| Book the flat | Book your unit, sign the OTP and submit CPF housing grant application form (if applicable) | 5% option fee |
| Sale and Purchase Agreement | Sign the Sale and Purchase Agreement, submit Letter of Offer (for bank loans) | 15% of purchase price + 1 to 3% legal and stamp fees, to be paid via CPF or cash within 9 weeks |
| Building in progress | Wait for EC to be built | None |
| Key collection | Receive invitation to collect keys | Depends on developer |
1) Visit the showroom and apply for an EC, or apply online
How you apply to buy an EC depends on the developer. Many developers now require you to first submit an e-application before you can be invited to visit the showroom.
2) Bring your required documents
When you do visit the showroom, make sure you bring along your IC, proof of marital status as well as birth certificates if you’re applying with parents and siblings, and proof of income—this usually means 12 months’ worth of payslips or, for self-employed people, your Notice of Assessment from IRAS and ACRA registration.
Always check with the developer ahead of time what documents you need to bring along, as requirements may differ from developer to developer.
At the showroom, you can apply for a flat. The developer will select the buyers via ballot, and much like in the BTO process, the lucky ones will be notified based on their queue numbers to select a flat.
3) Book your unit
So you’ve been selected to purchase an EC. Congrats! The developer will tell you when you can book your unit.
4) Get the Option to Purchase and pay booking fee
When you head down to select your unit, you’ll be required to secure an Option to Purchase (OTP) so that the developer can’t sell your unit to anyone else before it expires.
You’ll have to pay 5% of the purchase price in order to get your hands on that OTP. This 5% payment has to be made in cash.
Then you wait for HDB to approve the purchase, which usually takes 4 to 5 weeks.
Note — to finance an EC, you must get a bank loan.
It’s a good idea to start researching your loan options the minute you’ve secured the OTP.
EC buyers aren’t eligible for HDB loans, so your only option is to apply for a bank loan. The main difference is that you’ll need to fork out a bigger downpayment (at least 25% in cash/CPF), so be prepared for that.
Consult MoneySmart’s mortgage specialists for the best housing loans in Singapore so you know what to apply for.
Do note that EC buyers’ Mortgage Servicing Ratio (MSR) cannot exceed 30% of their incomes. That means you cannot be paying more than 30% of your combined income in home loan repayments.
And of course, you are also held to the Total Debt Servicing Ratio (TDSR) rules stating that your total loan liabilities (including car loans, credit card debt and so on) cannot exceed 60% of your income.
5) Exercise the Sales and Purchase Agreement and pay balance of downpayment and stamp duty
When HDB has approved your purchase, the Sales and Purchase Agreement (S&P) will be sent to you.
You now have 3 weeks to exercise the option by signing and returning the S&P. You also have to pay the 15% balance of the downpayment and buyer’s stamp duty, either on the day you exercise the option, or within 9 weeks from the date of the OTP, whichever is later. This 15% has can be paid using cash and/or CPF.
Before you die of shock at the balance of downpayment amount, which should be 15% of the purchase price, know that you should be able to use your HDB Housing Grants, if any, to pay for it.
By the time you get to this step, you should have already appointed a lawyer to handle the matter for you. The lawyer will make sure you don’t miss the deadline for exercising the S&P.
6) Wait for your EC to be built
Once the S&P has been exercised, sit back and wait while your EC is being built.
If you’re on the Normal Progressive Payment Scheme, you’ll have to start repaying your home loans before picking up the keys. You’ll be notified when your home loan repayments must commence.
Those on the Deferred Payment Scheme will only have to start repaying their home loan after picking up their keys.
7) Collect your keys
You should already have been informed by the developer of the estimated date for the release of the Temporary Occupation Permit (TOP).
When that day finally arrives, you’ll get to pick up your keys, move into your new home and start furnishing or renovating it.
