Step-by-Step Guide to Buying a Brand New Property

Last Updated on March 14, 2025 by Ross Del Rosario

Buying a brand new property is an exciting but complex process. If you’re a first-time buyer, you might be wondering where to start and who to work with. This guide will walk you through each step so you know exactly what to expect when buying a home.

Why Buy a Brand New Property?

Buying a brand new property comes with several benefits:

• New Construction – The property is brand new, with modern designs and features.
• Flexible Payment Terms – Developers often offer installment payment options.
• Warranties – New properties usually come with structural warranties.
• Less Hassle – No need to deal with previous owners or unclear property titles.

Working with a real estate broker like Ohmyhome makes the process even easier. Brokers help you find the right property, negotiate terms, and handle the paperwork.

Step 1: Define Your Budget and Financing

Start by knowing how much you can afford. Here’s what to consider:

• Total Budget – Include the property price, taxes, and other fees.
• Financing Option – Will you pay in cash or take out a loan?
• Down Payment – Most developers require at least 20% down payment. This should be money you already have set aside.

Lenders usually require that your total monthly loan payments should not exceed 30% of your monthly income. This includes existing loans like car or personal loans.

Step 2: Get Pre-Approved for a Loan

Getting pre-approved from the bank or a lender gives you an idea of how much you can borrow and shows developers that you’re a serious buyer.

To get pre-approved, you need:

• Proof of income (e.g., payslips, tax returns)
• Employment documents
• Bank statements
• Valid IDs

A higher credit score increases your chances of getting better loan terms. You can check your credit score through the Credit Information Corporation.

Step 3: Work with a Real Estate Broker

A broker makes the process easier by:

• Presenting available properties that match your budget and preferences.
• Explaining the terms and conditions of the sale.
• Handling negotiations with the developer.
• Ensuring that the property title and other legal documents are in order.

Ohmyhome has a team of experienced real estate brokers who can guide you through every step of the process.

Step 4: Reserve the Property

Once you find the right property, you’ll need to secure it by paying a reservation fee. This fee is usually non-refundable but will be deducted from the total price.

The developer will then prepare a Reservation Agreement, which includes:

• Property details
• Total price
• Payment terms
• Delivery date

Make sure to read and understand all terms before signing.

Step 5: Pay the Down Payment

After reserving the property, the next step is to pay the down payment. This is usually 20% of the total price and can be spread out over several months, depending on the developer’s terms.

Paying a higher down payment reduces the loan amount and lowers the total interest you’ll pay over time.

Step 6: Secure Your Home Loan

If you’re financing through a bank, submit your loan application with the necessary documents:

• Signed Reservation Agreement
• Proof of income and employment
• Credit history and bank statements

Once approved, the bank will issue a Letter of Guarantee (LOG) to the developer.

Step 7: Sign the Contract to Sell

After securing financing, you’ll sign the Contract to Sell with the developer. This document outlines:

• Payment schedule
• Property details
• Penalties for late payments
• Developer’s obligations

It’s important to have your broker review this document before signing.

Step 8: Property Inspection

Once the property is ready for turnover, schedule an inspection:

• Check for any construction defects.
• Ensure that all fixtures and finishes are installed as agreed.
• Create a punch list for any issues that need fixing.

Developers usually allow a period for repairs before final acceptance.

Step 9: Final Payment and Turnover

After the inspection, you’ll need to settle any remaining balance, including:

• Closing fees
• Transfer taxes
• Other miscellaneous fees

Once payment is complete, the developer will hand over the keys.

Step 10: Transfer of Ownership

The developer or your broker will assist with:

• Title registration
• Transfer of tax declaration
• Utility connection setup

Make sure that the property title is transferred under your name.

Tips for a Smooth Purchase

• Work with a trusted broker – They can help you avoid common mistakes.
• Keep all documents organized – This includes contracts, receipts, and communications.
• Stick to your budget – Avoid overstretching your finances.

How Ohmyhome Can Help You

Buying a property from a developer doesn’t have to be complicated. Ohmyhome connects you with trusted developers and handles everything from finding a property to closing the sale. Our experienced brokers will guide you every step of the way, making sure you get the best deal possible.