Let’s just call off the wedding!
Does this famous movie line sound familiar? After sleepless nights of planning for your engagement, stressing over your wedding to get your hands on that BTO key, the worst-case scenario is when either one of you utters this dreaded line.
It’s not just your run-of-the-mill breakup. Calling off your engagement after applying for your BTO and selecting your unit, be mentally prepared to lose two things: money and privilege rights.
What Happens BEFORE Key Collection
On your flat selection appointment, you would have paid an Option Fee of $2,000 for a 4/5 room flat, $1,000 for a 3-room flat or $500 for a 2-room flexi flat. Consider that amount forfeited forever. Plus the $10 application fee.
Successfully balloted for a flat and picked a unit? If you and your fiance/fiancee are both under 30 years old and the purchase price of your 4-room BTO is $383,300:
|What you will lose||After BTO Flat Selection||After Sale and Purchase Agreement Signed, Pending Key Collection|
That’s $62,524 excluding the grant interest.
|Rights||¬†You will be restricted from buying or balloting for another flat for one year. For first-time applicants, the additional chance for balloting will be reset to zero.|
Comparatively, the amount you stand to lose after BTO flat selection is not as bad as if you would have already signed your Sale and Purchase Agreement. How about after key collection?
What Happens AFTER Key Collection
If you have cancelled your engagement after key collection:
- $2,000- Option Fee
- $19,165- Downpayment (5% of purchase price)
- $6,099- Buyer’s Stamp Duty
- $260- Legal Conveyancing Fees
- $35,000 + Interest- EHG Grant Amount
- $347.75- Survey Fees
- $5.94- Fire insurance of a 4-room flat for 5 years (FWD)
- $252.52- Home Protection Scheme (HPS) Premium Fees (CPF Calculator) for 22 years Premium Payment Term
That’s $63,130.21 excluding the housing grant interest and you will also be barred from applying for another BTO flat for a few years.
At this stage, you would have paid the balance of the purchase price of the flat using cash, CPF funds, and/or disbursements of your bank loan. You will be notified of your flat’s key collection schedule and you would need to submit your certificate from the Registry of Marriage.
There are other miscellaneous fees you incurred at this point. The HDB will take back your flat and offer some compensation in return. If your bank has already disbursed your home loan, a significant portion of this amount will go towards repaying your mortgage.
As the famous song goes;
There’s no easy way to break somebody’s heart.
Indeed, there’s no easy way – especially in Singapore when a BTO flat is involved.
Opting to buy a resale flat instead? Search through thousands of genuine and unique listings.