Finding the right property means matching four things: your true budget (after ABSD, LTV and TDSR), the location tier that fits your life, the tenure you’re comfortable with (freehold vs 99-year), and the trade-off between a new launch and a resale unit. Start with the budget — it silently decides most of the rest.
How do you work out your real property budget?
Your budget is not the price you can imagine — it’s what the rules allow. The Loan-to-Value limit caps your loan (typically up to 75% for a first housing loan), the Total Debt Servicing Ratio caps repayments at 55% of gross income, and any Additional Buyer’s Stamp Duty adds a large upfront cost. Calculate these first; they set the ceiling before you view a single unit.
New launch or resale condo — which is right for you?
| Factor | New launch | Resale |
|---|---|---|
| Move-in | Wait (under construction) | Immediate |
| Payment | Progressive | Full financing upfront |
| What you see | Showflat / floor plan | The actual unit |
| Price | Often higher PSF | Negotiable, varies |
What location factors matter most?
- MRT proximity — the single biggest driver of convenience and resale demand.
- Schools — proximity to popular schools affects both lifestyle and value.
- Tenure — freehold holds value long-term; 99-year leasehold faces lease decay.
- URA Master Plan — check upcoming amenities and transport around the site.
Frequently asked questions
Is freehold always better than leasehold?
Not always. Freehold holds value longer, but 99-year leasehold units are often cheaper to enter and can offer better rental yields. It depends on your holding horizon.
General information, not financial advice. Confirm loan and stamp-duty rules with MAS and IRAS.
Quick Self-Check: Are You Ready to Buy?
Tap each question to reveal the answer — a fast way to test your grasp before you start viewing units.
Which rule caps your monthly loan repayments, and at what level?
The Total Debt Servicing Ratio (TDSR) — it caps total monthly debt repayments at 55% of your gross monthly income.
Why should you sort out financing before house-hunting?
An In-Principle Approval (bank) or HDB Loan Eligibility letter tells you your real loan ceiling — so you don’t fall for a unit you can’t fund and risk losing your deposit.
New launch or resale — which lets you see the actual unit?
Resale. A new launch is sold off a showflat and floor plan while under construction; resale is the real, existing unit you can inspect.
What’s the catch with a cheaper 99-year leasehold home?
Lease decay: as the remaining lease shortens, financing and CPF usage tighten and resale demand narrows — which can cap future value versus freehold.