13/08/2026
5 Costly Mistakes by DIY Buyers in 2026
1. Loan to Value is now 75% for Both Bank and HDB loan, so make sure your 25% Downpayment (CPF + Grants + Cash Deposits) is sufficient.
Your Loan can be high but your down payment can be insufficient
2. Don’t Forget Stamp Duty. Very common for buyers to ommit this portion and most importantly this much be from your CPF if not cash. So add this amount on top of your 25% Downpayment
3. Proximity Grants. Ensure your parent or married child is committed to restart the same MOP rules for the next 5 years when buying near them. Talk to them before committing for this grant. They must not sell within the next 5 years, if need to sell, they will need to buy within 4km to you. And also No renting of whole unit for the next 5 years. If they are intending to rent or already renting their whole unit and dependent on the rental income, you may want to reserve this grant for the future.
4. First timer Grant of $80k Grant for 4rms and smaller and $50k Grant for 5rms and bigger. Total budget for 4rm can be $650k but a $30k reduction to $620k budget when buying 5rms and bigger. Buying a 5rm at above $630k can be a common mistake. Unless you’re ready to pay cash for the difference.
5. COV can NOT be paid with excessive loan and CPF. Remember COV stands for Cash over valuation. Buying a property $500k in value but bough at $550k, the COV is $50k, this cannot be paid using loans or CPF! Your total budget (Loan + Grants + CPF) can add up to $650k, despite higher budget you cannot pay them with loan or CpF but with CAsH!!
