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How Much Down Payment Do You Actually Need for a Condo?

How Much Down Payment Do You Actually Need for a Condo?

For any first-time homebuyer in Singapore, the process of purchasing a condominium can be quite intimidating. There are many factors to consider, including the down payment, which is a significant 6-figure amount of financial commitment.

But don’t worry!

In this article, we will explore everything you need to know financially before getting a condo in Singapore, including how much you need to put down and tips for saving up to get you on track to own a condo for your own.

Buying a Condo in Singapore

Buying a Condo in Singapore

Excited? Buying a condo in Singapore is a significant investment, but it is also an excellent opportunity to own a piece of property in a prime location.

Only about 17% of property in Singapore is condo and 4.9% of it is landed. That means if you were to own a private property in Singapore, you could count yourself as the top 20% of the population!


Condos offer a convenient and luxurious lifestyle, with access to amenities such as swimming pools, gyms, and 24-hour security. So if you want a quiet home, with no weirdo throwing flyers into your doorstep, or getting unnecessary doorbell rings, you might want to consider a condo.

However, the process of buying a condo can be complicated, and it is essential to understand the costs involved.

How Much Do You Need to Put Down?

In Singapore, the required upfront payment for a condo is 25% of the purchase price(based on May 2023).

Minimum Amount Required

The minimum amount required for a condo in Singapore is 5% of the purchase price, but this is only applicable to properties that are valued at $1 million, the minimum required is 25% of the purchase price.

Factors Affecting the Down Payment

Several factors can affect the downpayment condo in Singapore, including the type of property, the loan amount, and the LTV ratio.

If you are taking out a bank loan, your credit score and financial history will also be taken into account. To understand more about your credit score and financial history, you can contact your bank and request a financial statement to find the maximum amount of loan you’re eligible for.

Additionally, the down payment may be higher if you are a non-Singaporean citizen or if you are purchasing a property under government schemes such as the Executive Condominium (EC) scheme.

If this section worries you, do contact us and we will understand your situation and provide solutions.

Understanding the Payment Schedule

When buying a condo in Singapore, it is essential to understand the payment schedule. The downpayment condo is typically paid in stages, with the first payment due upon signing the Option to Purchase (OTP) and the remaining payments due at various stages of the construction process. The exact payment schedule will depend on the developer and the project.

Financing Options

If you are unable to come up with the full down payment, there are several financing options available.

One option is to take out a personal loan, but this can come with high interest rates. While you may be able to take a good amount of loan, it is considered risky to ever have to take up a personal loan.

Another option is to tap into your Central Provident Fund (CPF) savings. Singaporeans and Permanent Residents can use their CPF Ordinary Account savings to pay for a portion of the down payment, but this will reduce their retirement savings. However, if you are in your early 20s or 30s, you can consider using your CPF since retirement is still years away from it.

Lastly, consider asking family members for a loan or gift to help with the down payment. In an Asian household, I’m sure parents or family members are more than willing to support you to take the first step toward independence.

Mistakes to Avoid

When making a condo down payment, there are several mistakes that you should avoid.

Firstly, don't use all of your savings for the down payment, this can leave you vulnerable in the event of an emergency. You should still have the minimum 6 12 months of emergency funds saved up.

Secondly, do not take out a personal loan with high interest rates(can go over 20% interest😵‍💫), as this can lead to financial strain in the long run. In our current high-interest rate environment, taking on a bad mortgage loan could mean disaster. So take the time to find the best loan that's right for you.

Lastly, do not rush into a purchase without doing proper research, as this can lead to a poor investment. It is a large financial commitment that spans over 5+ years, and you need to make sure you are ready for it.

Is a Condo Down Payment Worth It?

I hope this article helps you get a better understanding of the down payment requirements and concerns. It's not an investment to be treated lightly.

Buying a condo in Singapore is a significant investment, and the down payment is a crucial part of the process. While the down payment can be a significant financial commitment, it is worth it in the long run, as condos offer a luxurious and convenient lifestyle.

By understanding the down payment requirements and following the tips outlined in this article, you can make an informed decision and achieve your goal of owning a condo in Singapore.

Want to Know More?

Finding the perfect home can be really difficult when there are so many to choose from and people to work around. That’s why many first-time buyers approach me to get the best deal in the market for their property!

If you are interested to know more about the property market or want to work with somebody, be sure to reach out to us!

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