Singapore property knowledge database

ECs are developed and sold by private developers. They are comparable in terms of design and facilities to private condominiums.

ECs are different from private condominiums as only applicants who meet the basic eligibility are entitled to buy an EC. Buyers have to maintain their eligibility and physically occupy the EC for the first 5 years.

The main applicant must be a Singapore citizen and be at least 21 years old at the time of application.

The family nucleus must comprise of at least:

• Two (2) Singapore citizens; or
• One (1) Singapore citizen and One (1) Singapore Permanent Resident

a. Public Scheme

• Applicant; and spouse and children and parents (if any); and siblings
• Applicant (Divorced); and children (if any); and parents (if any)
• Applicant (Widowed); and children (if any); and parents (if any)

b. Fiancé / Fiancée Scheme

• Applicant and Fiancé / Fiancée

c. Orphan Scheme

• Applicant; and unmarried siblings

d. Joint Singles Scheme

• Applicant; and other single person
• Both must be Singapore Citizens and at least 35 years old

Gross monthly household must not exceed $14,000 per month at the time of application.

Employed Person

• Latest 3 months’ payslips / Income letter from employer indicating latest 3 months’ pay as at date of application

Self-Employed Person

• Latest 12 months’ salary based on Notice of Assessment from IRAS (NOA); or
• Statement of Annual Accounts certified by an Audit Firm to confirm income for the past 12 months; and
• Valid Accounting & Corporate Regulatory Authority (ACRA) Computer Information (Business Profile) / Valid license of business/trade; and
• Statutory Declaration to declare the average monthly income for the past 12 months

Commission-based Person

• Latest 12 months commission statements/payslips or letter from company indicating past 12 months’ commission as at date of application

Unemployed Person

• Statutory Declaration to declare the period of unemployment with no income; or
• Copy of Student Pass or Letter from School / College / Institute of Learning for persons who are 18 years old and above; to confirm student status

If you own a private property in Singapore or overseas, you are not eligible to buy an EC. If you have disposed your private property, you may apply for an EC after 30 months from the date of disposal of the private property.

If you have not booked a flat with HDB, you can apply and book an EC directly with developer, your flat application will be cancelled after you have booked the EC. If you have booked a flat in the Build-To-Order or Sale of Balance Flats exercise launched on or after March 2012 and decide to cancel the booking, you will not be eligible to apply for an EC unit within one year after the cancellation.

However, if you have booked a flat in a sale exercise launched before March 2012, you have to cancel your booking or terminate the Agreement for Lease with HDB before you can book an EC. A financial forfeiture will be imposed upon the cancellation.

If you decide not to exercise the Option to Purchase (OTP) for other EC unit or DBSS flat that you had booked earlier, you will have to inform the other developer of your decision and cancel your booking, before you are allowed to buy an EC unit with the developer.

No, HDB does not grant any loan for purchase of EC units. EC buyers will have to arrange for their own mortgage financing through banks and/or financial institutions. For more information on loans, please consult your financial advisers.

Applicants buying under Fiancé/Fiancée Scheme are required to produce their Marriage Certificate within 3-months from the date of taking possession of the EC. However, for applicants who have received CPF Housing Grant, they will be required to produce their Marriage Certificate for inspection by the developer before taking possession of their EC.

Applicants or occupiers listed in the EC application, who are existing owners of HDB flats or DBSS flats must sell their flats within 6 months from the date of issuance of the TOP in respect of the EC Unit.

After occupying the EC for five years, the EC owner can sell the property in the open market, but only to a Singaporean or PR. After the 10th year, all restrictions will be lifted and ECs will be on par with private property.

If you previously bought a new flat from HDB, Design, Build and Sell Scheme (DBSS) flat or Executive Condominium from a developer, or received a CPF Housing Grant, you might need to pay a resale levy when you purchase your next home.

The resale levy maintains a fair allocation of public housing subsidies between first-timers and second-timers by reducing the subsidy enjoyed for the second HDB flat or EC.

The Levy will range from $15,000 to $50,000, depending on the type of the first subsidised HDB flat; if the first subsidised unit was an EC, the levy is $55,000. You can check the limits via HDB e-Service: Resale Levy

Monetary Authority of Singapore (MAS) has capped the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions for EC units bought directly from developers at 30% of a borrower’s gross monthly income.

The 30% MSR cap will apply to EC purchases where the Option to Purchase is granted on or after 10 Dec 2013.

The cancellation fee for ECs is currently set at 20% of the purchase price. New cancellation fee of 5% will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where tenders have not been closed.

You may buy a dual-key EC units offered by the developer if you form a multi-generation family as follows:

• Married couple with parents/grandparents
• Fiancé and fiancée couple with parents/grandparents
• Widowed/divorced with children and parents/grandparents

Your average gross monthly household income must not exceed $14,000.

Fulfilment of:

• 5 years minimum occupation period if you own an existing HDB flat; and
• 30 months period if you had disposed of a private residential property (local/overseas)