Buying a New Condo vs Resale Condo
Last modified date: 25 June 2026
When planning to buy a condo, potential buyers will first mull over the pros and cons of buying a new one from developer or from resale market. Here are some useful insights about New Condo vs Resale Condo.
Newly launched condo is appealing to buyers who are not in a hurry to move in and prefer brand new property requiring minimal or no renovation.
Buyers who need immediate occupation especially after selling their existing properties, tend to go for resale properties at their preferred location.
Although older properties are generally more affordable and tends to be bigger, buyers have to take into account the cost of renovating the unit and the higher maintenance fee.
If the property is for investment, investor can go for resale property with existing tenancy and collect rent immediately to help cover the mortgage loan instalments.
What you need to know when financing a New Condo vs Resale Condo
Upfront Deposit and Timing of Downpayment
For newly launched condo, upon confirmation of the unit, the developer will collect a booking fee equivalent to 5% of purchase price from buyer and issue the Option to Purchase to the buyer.
Around 1 to 2 weeks later, buyer/buyer’s lawyer will receive the Sales & Purchase Agreement from the developer.
Within 3 weeks from receipt of the Sales & Purchase Agreement, buyer is required to exercise the Option to Purchase witnessed by a lawyer.
With this, buyer will make further downpayment equivalent to 15% of purchase price within 8 weeks after the date of the Option to Purchase.
The remaining downpayment is progressively paid upon request by developer during the construction period after each stage of completion. Construction period is on average about 3-4 years.
For project that is close to obtaining Temporary Occupation Permit (TOP), buyer is expected to fork out more downpayment within 8 weeks after Option date.
For resale condo, buyer will pay option money, typically at 1% of purchase price to seller in exchange for the Option to Purchase signed by seller.
Within 14 days after date of Option to Purchase, buyer is required to exercise the Option and make further payment at 4% of purchase price.
Payment of the remaining downpayment is made on completion date, normally 8 to 12 weeks after exercise date, or other timing as agreed between buyer and seller.
Bank Loan and Monthly Instalment
If the purchase of the newly launched condo involves bank financing, the loan will only be released after the downpayment are settled.
Instalment payment will start right after first loan disbursement. This means the monthly instalment will be a relatively small amount initially and will increase over time as more loan are drawn down.
In the case where buyer is obtaining minimal loan, the loan will not be released so soon, thereby allowing buyer more time to plan the cashflow as the remaining downpayments are gradually payout over 2 to 3 years.
For resale property, the whole loan amount is disbursed in one lump sum on completion date. Thereafter, instalment is payable based on the loan amount.
Illustration of Downpayment for New Condo vs Resale Condo based on 75% financing:
| New Condo | Resale Condo | |
| Initial Deposit |
Buyer pays 5% booking fee and receives OTP from vendor. |
Buyer pays 1% option fee and receives OTP from seller. |
| Downpayment upon Exercise | 3 weeks from receipt of S&P, buyer exercises OTP at lawyer office. Within 8 weeks from OTP date, buyer pays 15% down-payment (using cash &/or CPF). | Before OTP expiry, buyer signs OTP at lawyer office and pays 4% to seller using cash. |
| Remaining Downpayment | Payment of 5% according to progressive payment schedule. | Buyer pays 20% on Completion Date. |
| 75% Loan Disbursement | Progressive drawdown over 3 to 4 years. | Fully drawdown on Completion Date. |
Types of Home Loan Packages for New Condo vs Resale Condo
In the case where property is under construction, generally banks offer home loan packages that are on floating basis only, either pegged to SORA or Fixed Deposit Rate or Bank’s Board Rate. Interest rate will commence on first loan disbursement.
Packages normally do not have any lock in period and come with free conversion, which allows switching to another loan package within the same bank at no charge.
Fixed rate packages are only eligible for properties that are completed or those that have obtained Temporary Occupation Permit (TOP).
There are wider selections of home loan packages for completed properties as it comprises fixed rate as well as floating rate packages (that are pegged to SORA or Fixed Deposit Rate or Bank’s Board Rate).
Packages usually come with lock in period of at least 1 to 2 years, which may have restrictions on early lumpsum partial and full repayment of the loan.
Refinancing of Mortgage Loan
For condos that are under construction, borrowers generally refrain from refinancing their loan before obtaining TOP. This is because existing bank will charge a cancellation fee on the undisbursed loan. This can be a hefty sum to pay if the property is at the initial construction stage where majority of the loan is not disbursed yet.
After a condo has reached TOP, there is a last portion of loan that will only draw down within one year. At this point, refinancing may be considered as most of the loan is drawn down and the cancellation fee is relatively lower.
On the other hand, for resale properties, cancellation fee is not a concern as the loan is fully disbursed on completion date. Borrowers can consider refinancing their loan as long as the loan is out of lock-in period to avoid penalty.
Condo Purchase FAQs
What is the Maximum Loan for private properties?
For buyers with no existing home loan, banks can approve up to 75% of the property price/valuation (whichever is lower). Learn more about Maximum Loan Quantum for residential properties.
Can I use CPF to pay for downpayment?
Yes. With a bank loan of up to 75% of the condo price, the buyer must pay at least 5% downpayment using cash. The balance 20% down payment can be paid using funds from the buyer’s CPF Ordinary Account.
How can I know what is the Maximum Loan I can get from banks?
To find out the maximum loan banks can finance, you can apply for In Principle Approval (IPA) before committing to a condo. Learn more about Apply for In Principle Approval.
When to apply for bank loan?
A buyer can apply for a bank loan and secure their preferred loan package right after obtaining the Option to Purchase.
When to appoint a law firm?
Buyers can appoint a law firm after deciding which bank to apply, as banks require borrowers to appoint law firms from their approved panel. Buyers also have to ensure their law firm is different from sellers’ appointed law firm.
What are the benefits of engaging a Mortgage Broker
A mortgage broker can help buyers secure the best home loan deal thus saving time and effort to check with banks on their own. The consultation is free of charge as banks will pay a fee to the broker for successful loan acceptance.
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