Aurelle EC

Before purchasing an EC, it’s crucial to ensure that you meet the eligibility criteria set by HDB. This includes:

Citizenship: At least one buyer must be a Singapore Citizen.

Age: You must be at least 21 years old.

Family nucleus: You need to apply under one of HDB’s eligibility schemes, such as the Public Scheme (with a family member) or Fiancé/Fiancée Scheme.

Income Ceiling: The combined monthly household income must not exceed $16,000.

Previous Housing Subsidies: If you’ve received housing grants or owned an HDB flat, restrictions may apply (e.g., resale levy or waiting periods).

If purchasing a new EC directly from a developer, you’ll need to participate in the balloting process:

Launch: Developers will typically launch new ECs, and interested buyers can submit an application.

Balloting: If there’s strong demand, a balloting exercise is conducted to allocate units.

Booking: Once you’re successful in the ballot, you can select and book a unit. Typically, this requires a 5% booking fee, which is payable to the developer.

Upon booking a unit, the developer will issue an Option to Purchase (OTP), a legal document that gives you the exclusive right to purchase the unit.

Option Fee: This is usually 5% of the purchase price.

Validity: The OTP is usually valid for 3 weeks, during which time you should secure financing (e.g., home loans) and decide whether to proceed.

Bank Loan: EC buyers must secure a bank loan, as HDB loans are not applicable. It’s advisable to obtain a loan approval (Approval in Principle) before booking the EC.

Loan-to-Value (LTV) Ratio: EC buyers can borrow up to 75% of the property’s value, depending on individual financial situations and regulations.

Downpayment: The remaining 25% (minimum) of the property price must be paid using cash or CPF savings. Typically, 5% is paid in cash, and the other 20% can be paid with CPF funds or cash.

Legal Completion: After accepting the OTP, you have to sign the Sale and Purchase Agreement (S&P), usually within 8 to 10 weeks of the OTP. At this stage, a further 15% downpayment will need to be paid.

Stamp Duty: Buyers will also need to pay the Buyer’s Stamp Duty (BSD), which is calculated based on the purchase price, within 14 days of signing the S&P agreement.

As the EC is being constructed, you’ll need to make progressive payments based on the construction stages. This includes payments when the foundation is completed, when the walls are erected, etc. Typically, this is divided into several installments until the project is completed.

Once the EC is fully built, and a Temporary Occupation Permit (TOP) is issued, you can move into the property. Upon receiving the TOP, you’ll need to complete the final payments.

5-Year MOP: After purchasing the EC, you must occupy it for a minimum of 5 years before you can sell the unit in the open market. During this period, renting out the entire unit is not allowed.

After 10 Years: After 10 years, the EC will become fully privatized, and you can sell it to foreign buyers or entities.

Valuation: Obtain a valuation for your EC before listing it.

List the EC: Engage a property agent or list the EC for sale on property platforms.

Selling Process: Once a buyer is found, the OTP is issued to the buyer, followed by the S&P agreement. The sale is finalized when the legal and financial processes are completed.