When we’re buying, selling, and/or renting a property in Singapore, we’re going to come across a number of common terms (and a number of obscure ones too). Here’s a list for us both.
Also answering the random questions that pop up, like:
- Is it an or a HDB?
- Answer: Well, both, and up to us, according to A vs. An: When to Use Indefinite Articles | Merriam-Webster.
- Is it Build-to-Order or Built? With or without the dashes?
- Answer: Build-To-Order. (Though do we capitalise the “To”??)
If you’re on mobile, here’s a quick link to terms under N to Z (NOPQRSTUVWXYZ), and to the different types of HDB flats.
A to M
(ABCDEFGHIJKLM)
ABSD — Additional Buyer’s Stamp Duty, paid when an owner of a property in Singapore buys another property. IRAS | Additional Buyer’s Stamp Duty (ABSD) (This is on top of the Buyer’s Stamp Duty.)
For second and subsequent properties:
- SG 0% 20% 30%
- PR 5% 30 % 35%
- Foreigners 60%
- Companies 65%
Agent — two definitions here.
“Agent” commonly refers to individual Real Estate Salespersons (RES).
“Agent” officially refers to the real estate companies (PropNex, etc.), but no one outside of the industry uses this version of the term. Switching Estate Agent (cea.gov.sg)
BTO — Build-To-Order, a category of brand new flats built by the HDB. HDB | HDB Flat Portal (for upcoming launches).
Buyer’s Stamp Duty — paid when purchasing a property. IRAS | Buyer’s Stamp Duty (BSD). (See ABSD if buying second or subsequent properties.)
- First $180,000 — 1%
- Next $180,000 — 2%
- Next $640,000 — 3% (residential and commercial property)
- Remaining Amount — 4% (residential property only)
CEA — Council for Estate Agencies, a government statutory board that administers, regulates, investigates and promotes the competence of everyone in the real estate industry, to protect consumers. Overview (cea.gov.sg)
Community Care Apartment — senior-friendly housing. 1 bedroom, 1 toilet, living/dining/kitchen area. (See Types of Flats)
CPF — Central Provident Fund, a social security savings scheme that we can use to fund our home purchases. Central Provident Fund Board (CPFB)
DC — Development Charge, paid when a proposed development increases the value of a freehold property. Replaced by the Land Betterment Charge.
Decoupling — When two (or more) owners sell their share of the property to a single owner, so that they can purchase more properties without paying ABSD.
DP — Differential Premium, paid when a proposed development increases the value of a leasehold property. Replaced by the Land Betterment Charge.
Down payment — a portion of the total purchase price paid upfront to secure a property purchase.
Executive flat — 3 bedrooms, 1 living/dining room, 2 toilets, kitchen, with space for study room and optional balcony. (See Types of Flats)
HDB — Housing & Development Board, the public housing authority that plans and develops our housing estates. Housing & Development Board (HDB) (Related: Types of Flats)
HFE Letter — HDB Flat Eligibility Letter, which shows HDB flat buyers their eligibility, grants, loans, and resale levy. HDB | HDB Flat Portal
It replaces the HDB Loan Eligibility (HLE) Letter, and the Intent to Buy.
IPA — In-Principle Approval, given by banks for a home loan, subject to further conditions. (Actual approval comes in a Letter of Offer.)
Joint tenancy — the owners are treated as one, with right of survivorship, meaning the property passes to the surviving owner.
Jumbo flat — a combination of two adjacent flats: 4-room and 3-room, two 3-rooms, or 3-room and smaller. (See Types of Flats)
Land Betterment Charge (LBC) — paid when a proposed development increases the value of a property. Lease Management (sla.gov.sg)
Land Dealings (Approval) Unit (LDAU) — foreigners need LDAU approval before they can buy landed property, with Sentosa’s landed property as an exception.
Letter of Offer — given by banks when they approve a loan. [Related: In-Principle Approval (IPA).]
LPA — Lasting Power of Attorney, a legal instrument that indicates the ones you trust to act on your behalf if you lose mental capacity. The LPA The Lasting Power of Attorney (msf.gov.sg) (free to create until 31 March 2023)
LTV — loan-to-value, applicable to all property purchases. Borrow up to 80% of a property’s value depending on lender/mortgagee, loan duration, borrower’s age, existing housing loans, property type and person/company status. Loan Tenure and Loan-to-Value Limits (mas.gov.sg) (This ties in with TDSR limits on loans and incomes.)
HDB maximum loan is 80%.
Bank loans for first, second, subsequent property: 75%, 45%, 35%.
(Minimum 5% in cash, the rest in CPF/cash.)
MSR — Mortgage Servicing Ratio, applicable to HDB and EC purchases. All property loans are capped at 30% of a borrower’s monthly income. Mortgage Servicing Ratio and Total Debt Servicing Ratio Rules (mas.gov.sg)
N to Z
(NOPQRSTUVWXYZ)
OTP — Option to Purchase, a legally binding contract between sellers and buyers that protects both parties. Sellers grant an OTP to only one buyer at a time. HDB | Option to Purchase
RES — Real Estate Salesperson, the official term for property agents, realtors, brokers in Singapore. Set by the CEA, but we still call ourselves “agents” casually. Apply for the Real Estate Salesperson Examination (cea.gov.sg)
Resale — a term that refers to pre-owned and pre-loved property on sale again. HDB | Buying Procedure for Resale Flats
S&P — Sale and Purchase Agreement, used in private property transactions. Agreements & Checklists (cea.gov.sg)
SSD — Seller Stamp Duty, paid when selling a property within three years.
For residential property, within the first, second, or third year:
For industrial property, within the first, second, or third year:
SLA — Singapore Land Authority, a statutory board that holds Singapore’s land information database, and develops and markets state properties. Overview (sla.gov.sg)
TDSR — Total Debt Servicing Ratio, applicable to non-HDB / new EC purchases. All loans are capped at 55% of a borrower’s monthly income. Mortgage Servicing Ratio and Total Debt Servicing Ratio Rules (mas.gov.sg) This ties in with loan-to-value (LTV) limits on property purchases.
Tenancy-in-common — the owners are seen as separate, each able to pass their share to others.
Numbers
(work in progress
100/1 —
99/1 —
these two numbers are ownership methods that tend to be about delaying, avoiding, or even lowering ABSD. The government has caught up with the methods recently. I’d be very careful if you’re looking at these.)
Types of Flats
Community Care Apartment — senior-friendly housing. 1 bedroom, 1 toilet, living/dining/kitchen area.
2-room flat — 1 bedroom, 1 living/dining room, 1 toilet, kitchen, shelter.
3-room flat — 2 bedrooms, 1 living/dining room, 2 toilets, kitchen with utility area, shelter.
4-room flat — 3 bedrooms, 1 living/dining room, 2 toilets, kitchen, service yard, shelter.
5-room flat — 3 bedrooms, 1 living room, 1 dining/study room, 2 toilets, kitchen, service yard, shelter.
3Gen — for multi-generational families. 4 bedrooms, 1 living/dining room, 3 toilets, kitchen, service yard, shelter.
Executive flat — 3 bedrooms, 1 living/dining room, 2 toilets, kitchen, with space for study room and optional balcony.
Jumbo flat — a combination of two adjacent flats: 4-room and 3-room, two 3-rooms, or 3-room and smaller.
There are…
“just 2,900 out of a total pool of about one million Housing Board flats.
They emerged from a one-off move in 1989 to give unsold three-room and four-room flats a new lease of life. The Government combined them to form ‘jumbo’ flats by knocking down the wall between two adjacent flats. About 80 per cent of the jumbo flats are found in Woodlands, the first town to see such converted flats, said HDB. The rest are in Yishun, Jurong East, Bedok and Tampines.
They have since gained popularity especially among large multi-generational families, and command a premium, costing about $650,000 to $950,000. They range from 147 sq m to 199 sq m in size.”
A jumbo love for jumbo flats | The Straits Times, 2017.
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