Copen Grand, Tengah Town’s first executive condominium (EC), initially grabbed the headlines when it announced its launch prices in October 2022.
Prices for its two-bedroom plus study started at $1.08 million and for its five-bedroom premium at $1.88 million. Yet, despite the eye-watering price tag, Copen Grand was fully sold within one month of its launch. In fact, first-time buyers purchased more than 70% of the 639-unit development.
Even after multiple rounds of cooling measures were introduced to dampen the hot property market, prices of new executive condominiums continue to stay elevated, with an average unit costing at least $1.5 million. This raises questions over the affordability of such public housing developments.
In this article, we compute how much of a down payment—a barometer for affordability—is required when purchasing new executive condominiums, as their loan limits are different than those for HDB flats and private housing.
Read Also: 8 Current And Upcoming Executive Condominiums in 2025
Loan Eligibility Requirements For Buying Executive Condominiums
The executive condominium (EC) scheme was introduced to provide an affordable option for higher-income Singaporeans who aspire to own private housing. Because the average EC buyer is slightly more affluent than the average HDB buyer, the rules for buying and getting a loan for ECs are different from those for regular HDB flats.
#1 Income Ceiling
To qualify for the purchase of a new EC, the buyer’s monthly household income must not exceed $16,000. This is a higher limit than the one for direct HDB flat buyers, whose monthly income should not exceed $14,000 if they are a couple or $21,000 if they are buying as an extended or multi-generational family.
#2 Housing Grants
The housing grants for which EC buyers qualify are also less than what an HDB flat buyer could get. Depending on the household income, EC buyers could expect to get up to $30,000 in housing grants, compared to HDB BTO flat buyers, who could get up to $120,000 in enhanced housing grants (EHG).
Source: HDB – Family Grants Available to First-time EC buyers
Read Also: Complete First-Timers’ Guide To Buying A New Executive Condominium (EC) In Singapore
#3 Loan Limit
Buyers of ECs are only able to get home loan financing from financial institutions, as ECs bought directly from developers are not eligible for HDB loans. This means EC buyers are subject to the same loan-to-value (LTV) of 75% of the property’s value as private property buyers. However, following multiple rounds of cooling measures, the HDB LTV has also reduced from 90% to 75%, making it similar to ECs and private properties.
That said, a key difference between ECs and HDBs is the downpayment structure. EC buyers must pay a minimum 5% cash downpayment with the remaining 20% either in cash or CPF, or a combination of both. In contrast, HDB buyers can pay the downpayment fully using their CPF OA, cash or a combination of both.
Lastly, EC buyers are also subject to the same mortgage servicing ratio (MSR) cap of 30% as HDB flat buyers. The ratio restricts the portion of an EC buyer’s gross monthly income that goes towards paying the home loan. This is much lower than the 55% cap that is used for private housing buyers under the Total Debt Servicing Ratio (TDSR) rules.
| New Executive Condominiums | HDB Flats | Private Properties | |
| Borrower’s monthly income ceiling | $16,000 | $14,000 for couples or $21,000 for multi-gen families | No Limit |
| Borrower’s loan servicing ratio limit | MSR – 30% | MSR – 30% | TDSR – 55% |
| Loan To Value | 75% | 75% | 75% |
| Minimum cash payment | 5% | 5% cash or CPF OA Savings | 5% |
Down Payment Needed For New Executive Condominiums
The table below indicates the maximum loan amount based on the loan limits for EC buyers based on a MSR of 30%. The calculation factors for the stamp duty and miscellaneous fees.
|
Monthly Household Income |
Loan Amount Per Tenure |
|||
|
30 Years |
25 Years |
20 Years |
15 Years |
|
|
$10,000 |
$581,804 |
$531,556 |
$468,183 |
$388,258 |
|
$10,500 |
$610,895 |
$558,133 |
$491,592 |
$407,671 |
|
$11,000 |
$639,985 |
$584,711 |
$515,001 |
$427,084 |
|
$11,500 |
$669,075 |
$611,289 |
$538,410 |
$446,496 |
|
$12,000 |
$698,165 |
$637,867 |
$561,819 |
$465,909 |
|
$12,500 |
$727,256 |
$664,445 |
$585,228 |
$485,322 |
|
$13,000 |
$756,346 |
$691,022 |
$608,638 |
$504,735 |
|
$13,500 |
$785,436 |
$717,600 |
$632,047 |
$524,148 |
|
$14,000 |
$814,526 |
$744,178 |
$655,456 |
$543,561 |
|
$14,500 |
$843,617 |
$770,756 |
$678,865 |
$562,974 |
|
$15,000 |
$872,707 |
$797,334 |
$702,274 |
$582,387 |
|
$15,500 |
$901,797 |
$823,911 |
$725,683 |
$601,800 |
|
$16,000 |
$930,887 |
$850,489 |
$749,093 |
$621,213 |
Based on the table, an EC buyer with a monthly household income of $16,000 and a 30-year loan tenure can have a maximum purchase price $1,340,552 and a minimum downpayment of $409,665.
Here is how much down payment you would need for the available EC launches in 2025 based on the maximum loan of $930,887.
|
Aurelle of Tampines |
|||
|
Property Types |
Starting Price |
(Min 25%) Down Payment |
Loan Shortfall |
|
3 Bedroom + Study / (840 sqft) |
$1,417,000 |
$354,250 |
$131,863 |
|
4 Bedroom / (1,023 sqft) |
$1,689,000 |
$422,250 |
$335,863 |
|
5 Bedroom |
$2,258,000 |
$564,500 |
$762,613 |
|
Otto Place |
|||
|
Property Types |
Starting Price |
(Min) Down Payment |
Loan Shortfall |
|
3 Bedroom Deluxe / (872 sqft) |
$1,389,000 |
$347,250 |
$110,863 |
|
3 Bedroom Deluxe + Study / (958 sqft) |
$1,568,000 |
$392,000 |
$245,113 |
|
4 Bedroom Luxury + Study / (1,195 sqft) |
$1,898,000 |
$474,500 |
$492,613 |
Read Also: Tenet – How This Executive Condominium (EC) Showcases What Public Housing In Singapore Can Be
From the table above, it’s clear that the required downpayment is substantially higher than the typical 25% ratio for a 75% Loan-To-Value limit. For units at Aurelle of Tampines or Otto Place, EC buyers would need to prepare at least between $458,113 and $1,327,113 upfront.
This amount could increase further if the buyer opts for the deferred payment scheme (DPS), which adds 3% to the purchase price, as well as if the stamp duty and other miscellaneous fees are factored in.
This significant downpayment requirement might be unrealistic for most first-timers especially if they don’t have substantial cash/cpf savings or assistance from family and friends.
What Higher Down Payment Means For Property Investments?
Paying more of the property’s value upfront is usually seen as a more conservative move, as you would be reducing your loan amount. But this is not the case with the current EC prices. New EC buyers would have to stretch their full loan limits and pay more than the 25% down payment to be able to afford these price levels.
Given the high down payment sum, it is likely that young first-time buyers will need to tap into alternative funding sources, which in some cases could be their parents, to cover the excess down payment. This might give a false sense of one’s affordability for the EC they could buy, which in turn leads to further overpricing of such homes.
Therefore, it is better to stay prudent and avoid stretching your finances by buying a home that is within your financial means.
Read Also: 3-3-5 Rule Of Buying An HDB Flat: How Much Can Singaporeans Really Afford?
Whether you’re accessing your loan affordability or looking for the best home loan rates, you can use the services provided by our friends over at RedBrick and Cashew.
If you prefer a DIY approach, Cashew offers a user-friendly platform that compares the different packages across the various banks based on your loan inputs. When you’re ready to take the next step, their advisors would also assist you to apply for the preferred loan package, all from the comfort of your home. Alternatively, RedBrick offers a more personalised experience, with its professional mortgage brokers sharing their insights regarding the small nuances of each loan package during a free, non-obligatory consultation. Check out our home loan guide for more information.
