Government Policy, Loan And Stamp Duty
Last Updated: Sep 12, 2022
These are frequently asked questions which can help one understand certain burning questions on government policy, loan and stamp duty.
GOVERNMENT POLICY, LOAN AND STAMP DUTY:
1. What is TDSR in full?
- a. Total Debt Service Rate
- b. Total Debt Servicing Repayment
- c. Total Debt Servicing Ratio
- d. Total Debt Service Ratio
Answer: d. Total Debt Servicing Ratio.
What is the maximum Loan-To-Value (LTV) of a 3rd housing loan?
- a. 25%
- b. 35%
- c. 45%
- d. 55%
Answer: b. 35%.
What is the cash downpayment for Extended Loan Tenure?
- a. 17%
- b. 20%
- c. 25%
- d. 30%
Answer: c. 25%.
What is the correct utilisation order when purchasing a private condo?
- a. CPF, Cash, Loan
- b. Loan, Cash, CPF
- c. Cash, Loan, CPF
- d. Cash, CPF, Loan
Answer: d. Cash, CPF, Loan.
What is CPF Full Retirement Sum for 2022?
- a. $190,000
- b. $192,000
- c. $194,000
- d. $196,000
Answer: b. $192,000
What the Basic Retirement Sum for buying 2nd property in 2022?
- a. $95,000
- b. $96,000
- c. $97,000
- d. $98,000
Answer: b. $96,000
HDB owner owns an hdb flat that will MOP in August 2022. Can he/she book a unit at Sky Eden @ Bedok which is launching in September 2022?
- a. Yes
- b. No
- c. Not sure, must check with developer
- d. None of the above
Answer: a. Yes
EC owner husband is owner, wife is an essential occupier who has 6 more months to MOP. Can the wife buy Sky Eden @ Bedok as 1st property?
- a. Yes
- b. No
- c. Maybe
- d. None of the above
Answer: b. No
Which loans are considered as debt obligations in calculating TDSR?
- a. Car Loan & Credit Loan
- b. Revolving & Renovation Loans
- c. Unsecured & Student Loans
- d. Property & Mortgage Loans
- e. All of the above
Answer: e. All of the above
Eden is planning to purchase a 2nd property in 2022. How much of CPF Basic Retirement Sum (BRS) will he be required to set aside if he plans to utilise his cash funds for repayment of his purchase?
- a. $90,500
- b. $93,000
- c. $96,000
- d. None of the above
Answer: d. None of the above
Fiance/Fiancee Alan (SPR) and Aileen (SC) intend to purchase their first matrimonial home. Which is incorrect on ABSD payable?
- a. 5%, if ROM before signing Sales & Purchase Agreement
- b. 0%, if ROM before Option To Purchase
- c. 5%, if ROM after signing Sales & Purchase Agreement
- d. None of the above
Answer: a. 5%, if ROM before signing Sales & Purchase Agreement (S&P).
Reason: If they register for their marriage before they sign the S&P, they are considered married and therefore, if they buy first matrimonial home, they do not need to pay ABSD. This is if neither of them own a residential property individually at the time of purchase. Similarly, if a SC and a Foreigner married couple buys their first matrimonial home (assumption: none of them owns any residential property at that time), they do not need to pay ABSD.
Mr Wang (SC) and Mrs Wang (SC) jointly own a condo. Mrs Wang inherited 5% share of another condo from her deceased parent. Mr Wang now intends to purchase a property with his son (SC) who does not have any property. What will be the ABSD payable for the property jointly purchased by Mr Wang and his son?
- a. 17%
- b. 25%
- c. 30%
- d. 0%
Answer: a. 17%
What is the ABSD percentage for buyer (USA) buying 2nd private property?
- a. 5%
- b. 17%
- c. 25%
- d. 30%
Answer: b. 17%. Reason: USA has a free trade agreement with Singapore so US citizen pays the same ABSD as a Singapore citizen.
What is the ABSD percentage for Singapore citizenship buyer buying a 3rd private property?
- a. 12%
- b. 17%
- c. 25%
- d. 30%
Answer: c. 25%
Is there a remission of ABSD for married couples who are SPR + Foreigner?
- a. No
- b. Yes
- c. Maybe
- d. None of the above
Answer: a. No. Reason: Must consists of at least one Singapore citizen to qualify for remission.
What is the ABSD payable for a married couple of which one is a Singapore Citizen (SC) buying 2nd property and Foreigner buying 1st property?
- a. 0%
- b. 17%
- c. 25%
- d. 30%
Answer: d. 30%. Reason: ABSD is always calculated from the person with the highest tax status. In this case, although the Singapore Citizen needs to pay only 17% ABSD, the Foreigner is required to pay 30% ABSD even for his 1st property purchase. Since the couple is buying the property jointly, the ABSD will be calculated from the person with the higher tax status.
What is the ABSD for Singapore Permanent Resident’s (SPR) 1st, 2nd, 3rd property?
- a. 0%, 3% & 3%
- b. 5%, 10% & 10%
- c. 5%, 15% & 15%
- d. 5%, 25% & 30%
Answer: d. 5%, 25% & 30%.
Can a Singapore Citizen (SC)/Singapore Permanent Resident (SPR) couple who owns one property each be eligible for ABSD refund when buying a matrimonial home together?
- a. Yes, provided they dispose both first properties
- b. No, as their first properties are not co-owned
Answer: a. Yes, provided they dispose both first properties. Reason: A married couple consisting of at least a SC will be eligible for ABSD refund when they buy their matrimonial home. They must not own any residential property separately at the time of purchase.
Both Jane and her mother only own one fully paid property valued at $1M today. Jane owns 50% share. If her mother intends to gift her 50% share to Jane, what will be the ABSD payable by Jane?
- a. $170,000
- b. $250,000
- c. $300,000
- d. $0
Answer: d. $0. There is no ABSD involved since it is the same property. However, there is BSD to be paid. On the other hand, if a residential property is gifted to another person (not a owner of this same property), and if that person owns a residential property at that point in time, ABSD is then payable together together with BSD.
Which of the following scenario will not require the payment of BSD and ABSD?
- a. Inherited property
- b. Transfer by Way of Gift
- c. Singaporean couple buying a private property/li>
- d. Singaporean couple
Answer: a. Inherited property
Which of the following statement is incorrect when buying a property in trust?
- a. The trustee cannot use CPF
- b. The trustee cannot take a loan to finance the purchase
- c. Buyer stamp duty will be calculated as according to the profile of the trustee
- d. They is no limit to the number of Trustees, and can include Replacement Trustee
Answer: c. Buyer stamp duty will be calculated as according to the profile of the trustee. Reason: It is not the Buyer Stamp Duty but the ABSD that is calculated according to the profile of the trustee.
Singaporean couple owns a single home in Singapore but also owns properties in Australia and commercial properties in Singapore. What is the ABSD payable if couple buys Lentor Modern?
- a. 0%
- b. 17%
- c. 25%
- d. 30%
Answer: b. 17%. Reason: overseas properties and commercial properties in Singapore need not incur ABSD as they do not add to the residential property count.
General Knowledge
Buyer needs to pay a penalty if he/she submits an Expression Of Interest (EOI) but does not proceed to book due to whatever reasons.
- a. No
- b. Yes
- c. Depending on the decision of the Developer
- d. Depending on the decision of the Controller of Housing
Answer: a. No
Is re-issue of option allowed?
- a. No
- b. Yes
- c. Depending on the decision of the Developer
- d. Depending on the decision of the Controller of Housing
Answer: a. No
What is the Booking Fee for Copen Grand executive condominium (EC)?
- a. 1%
- b. 4%
- c. 5%
- d. 10%
Answer: c. 5%. Booking Fee for EC is the same as that for a private new Singapore condo.
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