Owning a freehold property means that you are the owner of the property for an indefinite period of time. With a leasehold property, there is a definite number of years where you are the owner of the property. This can range from 99 to 999 years.

With private property, do note that the sale and purchase has to be completed within 12 weeks from the date where the Option to Purchase is exercised. For HDB flats, the sale and purchase is completed during your completion appointment with HDB (this is usually 6 to 8 weeks after your first appointment).

Most of the time, your Option to Purchase must be exercised with 14 days. If this time lapses, your option fee may be forfeited. As a safeguard, you may obtain an in-principal approval from a bank before committing to your purchase and paying the option fee.

The documents banks typically need include:

• Your NRIC/passport (Singaporeans) or employment pass (for foreigners)
• Notice of Assessment
• Payslips (or other proof to confirm your current salary)
• CPF contribution history
• Option to Purchase, or the Sale and Purchase Agreement
• Any other documents that the bank may request for

When you decide to make an offer, you will be asked to place an option fee of 1% of the purchase price. When you choose to exercise this option, you will (usually) be asked to pay another 4% of the purchase price. If this is your first property, you can borrow up to 80% of the purchase price or valuation (whichever is lower). Of the remaining 20%, 5% is to be paid in cash and the rest in either cash or CPF funds.

For most banks, the minimum loan amount is $100,000 for private property and HDB flats.