Cost Associated in Buying HDB Flat in Singapore


Now you are considering to have a flat for you and your family.

You have saved quite a lot in the past and decide now is the time to finally move out and start a life of your own.

But… How much do you really to spend to purchase HDB flat?

Surely you don’t want to spend more than you have to right?

This is what this post will further explain to you – how you can manage to create a budget and foresee what you need to pay for it.

  • Option fee – Both you and the seller will determine this amount after the seller gave you the option to purchase the HDB flat. It usually cost a maximum of $1,000.
  • Option exercise fee – You will need to pay a deposit to exercise the option to purchase within 21 days. It usually cost at a maximum of $5,000 (minus option fee).
  • Down payment – The down payment you need to make usually cost around 10% of the agreed purchase price (minus option exercise fee).
  • Valuation fee – If you are paying with CPF savings or loan from banks, you will need a valuation report by experts. However, the cost will be varied across individuals and the property.
  • Resale application fees – You and the seller will both pay this fees to the government that ranges from $40 – $80, depending on the flat type.
  • Legal fees – This involve the cost of conveyancing and registration of land titles and deeds. You can use your solicitor or let HDB to appoints one.
  • Insurance – You will live in a tall apartment and is highly prone to fire by one of your neighbourhood below (in case something went wrong). So this insurance will cover a fire insurance that will protect you when such event came. Please note that your home contents are not included inside. 
  • Administrative fees – It is a non-refundable payment when you submit an application for flat to HDB. Roughly will cost you around $10.
  • Buyer’s Agent fees – If you are using an agent to purchase HDB flat, you will need to pay commission for his/her service. Although it is negotiable, the average commission is around 1% of the purchase price.

These will be your upfront payments that you will need to choke out of your wallet and bank accounts (or CPF if you have one). After you are done with the first phase, you will need to turn your attention for bank payments.