For many Singaporeans, buying a resale HDB flat is a significant financial commitment. Even the Housing & Development Board (HDB) often uses the relatively higher prices of resale flats to show how much cheaper a new Build‑to‑Order (BTO) flat is. Unlike BTO units, resale flats allow you to move in quickly and give you more choice on which neighbourhood you want to live in. However, they also come with unique financial considerations, and potential buyers might be wondering how much cash they should have to buy, renovate, and furnish a resale flat.
It’s easy to assume that your CPF Ordinary Account and a housing loan will take care of everything, but the reality is more complex. Cash plays a critical role at several stages of the process, from the initial deposit to legal fees and renovation costs. Without proper planning, buyers may find themselves scrambling to cover shortfalls.
#1 Option to Purchase
The first cash requirement is the Option to Purchase (OTP). This is a legally binding deposit paid directly to the seller and typically ranges between $2,000 and $5,000. The OTP is made up of two parts: the Option Fee, to be paid when the OTP is granted, and the Option Exercise Fee, to be paid when the OTP is exercised, no more than 21 days later. The Option Fee has to be between $1 and $1,000, while the OTP as a whole cannot exceed $5,000.
Read Also: Guide To Understanding Option To Purchase (OTP) In Singapore
The OTP secures your right to buy the flat, but once exercised, it’s legally binding. As a buyer, you’re not obliged to exercise the OTP, but the seller will get to keep the Option Fee if you do not exercise it.
That means you should only commit once you’re confident about financing. If you’re taking a bank loan, ensure you have a Letter of Offer ready; if you’re opting for an HDB loan, the HDB Loan Eligibility (HLE) letter should already be in place before sellers can grant you an OTP.
#2 Request For Value And Resale Application Fee
In addition to the OTP, there are two mandatory administrative fees. Making the Request For Value to HDB costs $120, while submitting the resale application requires $80 (or $40 for 1‑ and 2‑room flats). These amounts are relatively small compared to the overall purchase price, but they must be paid in cash at the point of transaction.
The Request for Value must be submitted to HDB by the next working day after paying the Option Fee, so that HDB can inform buyers of the flat’s value. If needed, HDB will appoint a licensed valuer to conduct a valuation before you need to exercise the OTP.
Read Also: What Happens When You Buy A Property Above or Below Valuation?
#3 Legal Fees And Stamp Duties
Legal fees are another area where you can use your CPF savings if you have enough. If you use HDB’s conveyancing service, costs are relatively modest, typically around $400 to $500. Engaging a private solicitor can run between $1,000 and $3,000. There will be some miscellaneous fees payable to Singapore Land Authority (SLA) that will need to be paid in cash but these amounts should not cost more than $200.
Stamp duty is based on the purchase price and is usually paid using CPF. However, if CPF funds are insufficient, or if you are not taking a housing loan but are still engaging HDB to act for you in the purchase, you will need to pay the stamp duties in cash. Planning ahead ensures you don’t get caught off guard.
Read Also: How Much Buyer’s Stamp Duty (BSD) And ABSD Singaporeans, PRs And Foreigners Need To Pay – And When
#4 Initial Payment And Resale Completion
The positive difference in the resale price and the value of the flat is known as Cash Over Valuation (COV). As the name implies, this needs to be paid in cash.
Read Also: What Is Cash-Over-Valuation (COV) And How Does It Affect (Or Not Affect) HDB Prices
Your choice of financing also affects how much cash you’ll need upfront. Downpayment is at least 25% of the lower of resale price or value of the flat.
Buyers taking an HDB loan generally face lower initial cash requirements, since you can use your CPF OA savings (including CPF housing grants) if you have enough.
Bank loans, however, require you to pay a minimum of 5% to 10% the lower of the resale price or the value of the flat in cash.
The largest potential cash outlay comes at completion. Your purchase price will be covered by a mix of CPF savings, housing grants, and your loan. However, if there’s any shortfall, you must pay the difference in cash. For example, your CPF Ordinary Account doesn’t have enough funds, or your loan doesn’t cover the full amount. Many buyers keep a buffer of $10,000 to $30,000 ready for this reason. The exact figure depends on the flat price, CPF usage, and loan eligibility.
#5 Renovation And Moving Costs
While not part of the official transaction, renovation and moving expenses are unavoidable for most resale buyers. Renovation packages can easily run into tens of thousands of dollars, depending on the scope of work. Movers typically charge several hundred dollars, depending on the size of your household. These costs are almost always cash‑based, so factor them into your overall budget.
In practice, you should have enough cash for the OTP deposit and administrative fees immediately, and a buffer of at least one to three months of mortgage payments set aside for completion shortfalls, legal fees, and renovations. For most buyers, this translates to roughly $10,000 to $30,000, though the exact figure depends on your financing mix and CPF availability.
Read Also: How Much Does It Cost To Renovate Your HDB Resale Flat?
