The ultimate checklist for home ownership

By Lynette Tan

If you’ve only got a minute:

• Home purchase is a huge financial commitment so affordability is key. 
• Online tools such as the DBS MyHome Planning tool that can help you figure out the amount you can borrow for your home purchase and a timeline of your cashflows. Use the checklist below to help you on each step of your home purchase journey.

Buying a home is likely one of the most significant financial investments you'll make in your life. It's completely normal to have many questions on affordability, the process and seeking out the right way or timeline for each step.  

While it may seem daunting, consider this home-buying checklist your ultimate companion throughout the entire process. It covers the various phases from gathering essential documents to securing a mortgage and finding your dream home. We've outlined each stage below and provided you with a clear roadmap to navigate the journey seamlessly.

Download the home ownership checklist here.

1. Pre-purchase: Figure out affordability

Purchasing a home is a significant milestone in life and a long-term financial responsibility. Therefore, it's crucial to meticulously plan your budget before taking the leap. 

Begin by determining your affordability. Consider expenses such as the downpayment, option fees, stamp duties, legal fees, potential renovation costs, and monthly mortgage repayments. This exercise will help you identify properties within your financial means and avoid overextending yourself. 

Explore if you qualify for any grants or incentives that can ease your financial burden. If you're considering public housing, compare the various grants available as these may give you substantial savings. 

If you're unsure which property types (HDB, EC, condo, or landed property) are within your reach, utilise the MyHome planning tool to assist with your calculations. Consider setting a reminder to update your cashflow planner to review your finances regularly.  

You can obtain an In-Principle Approval (IPA) to gain a clearer understanding of your borrowing capacity (the maximum loan amount you can secure from the bank), streamlining the purchasing process. Do remember that if you intend to use your IPA for an actual application, it is only valid for 1 month. 

2. Property search

The proximity of your home to essential amenities, such as schools, markets, medical facilities, public transportation and recreational areas has a significant impact on your daily life and the value of your property. 

When selecting a location, consider your lifestyle preferences and priorities. Whether you prefer the hustle and bustle of city life or the tranquillity of a suburban setting, choose an area that aligns with your needs. A pleasant and comfortable living environment contributes to your overall well-being, especially if you have children or plan to have them in the future. 

To find your dream home, start by identifying your non-negotiable and desirable features, including property type, size, and condition. Conduct thorough inspections to assess the property's condition and identify any potential issues or renovation needs. 

Utilise virtual tours and physical viewings to get a comprehensive understanding of the property's layout, lighting, ventilation, and overall ambiance. Pay attention to shared facilities and the general vibe of the neighbourhood to ensure it resonates with your lifestyle and preferences. 

3. Making an offer

Negotiating the purchase price involves discussing the property's value with the seller or agent, considering market conditions, property condition, and your budget. It's crucial to clearly define all aspects of the transaction, such as timelines, payment terms, and the included fixtures or furnishings, in the offer. Engaging a conveyancing lawyer under DBS Panel is recommended to handle the legal aspects of the transaction, including due diligence, contract review and completion procedures. 

Once an agreement is reached, signing the Option to Purchase (OTP) document secures the property at the agreed price for a specified period. A booking fee, typically 1% of the purchase price, is paid within 14 days to demonstrate commitment to the purchase. It's important to remember the due date for stamp duty payment as well. 

4. Post-offer

After the offer stage, you will need to secure the financing required for both the downpayment as well as your mortgage. The downpayment required typically ranges from 5% to 25% of the purchase price, depending on whether you are using a HDB loan or a bank loan.  

At this point, you should already have your conveyancing law firm. If not, ask your mortgage specialist for their contact. To secure mortgage loan approval, submit your application to banks or financial institutions and provide the necessary documentation.  

To exercise the Option to Purchase, you will need 3 items: a 4% downpayment cheque, a letter of offer from the bank, and a signed OTP from your conveyancing law firm. These must be sent to the seller's law firm within the option validity period. Once due diligence is completed satisfactorily, sign the Sales & Purchase Agreement (SPA) to formalise the property purchase. Pay the deposit as specified in the SPA (typically 4-5% of the purchase price) to confirm your intent to proceed with the transaction. 

5. Transaction completion & transfer of ownership

Before the transaction completion date, ensure you have settled any additional costs, such as stamp duty and legal fees. Prepare sufficient funds to cover the balance of the purchase price. Finalise loan arrangements with your mortgage lender and set up a loan servicing account and CPF deduction arrangements. On the completion date, pay the balance of the purchase price through your conveyancing lawyer's trust account. 

Your conveyancing lawyer will facilitate the transfer of ownership and registration of the property title with the Singapore Land Authority (SLA). Once the transfer is complete, collect the keys to your new property and receive all relevant legal documents, including a copy of the title deed. 

6. Post-purchase

After purchasing a property, ensure that the change of ownership is registered with relevant government agencies, including IRAS and BCA. Arrange for the transfer of utilities and services to your name and update billing information. This is usually done on the transaction date.  

As a property owner, you are responsible for fulfilling ongoing obligations such as paying property taxes, maintenance fees (if applicable), and other recurring expenses. Consider arranging mortgage and home contents insurance to protect your home and its contents against unforeseen risks.  

Completing the purchase of your new home is already a big step but what’s next can be pretty exciting - renovating and moving into your dream home. Read here for more details on what to do after your home purchase journey.

Start Planning Now

Check out DBS Home Marketplace to work out the sums and find a home that meets your budget and preferences. The best part – it cuts out the guesswork.

Start Planning

Alternatively, prepare yourself with an In-Principle Approval (IPA), so you have certainty on how much you could borrow for your home, allowing you to know your budget accurately.

Apply In-Principle Approval

Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.