Everyone knows about the $10 application fee that has to be paid with each application for a BTO flat from HDB. Everyone also knows about having to save up for the downpayment of your new flat. But did you know about the hidden costs of buying a BTO that nobody talks about?
Before you’re caught off-guard and faced with the stressful situation of straining your cash flow, or find yourself short on cash, here are the miscellaneous fees, from insurance to conservancy charges, that you won’t find in any HDB brochure.
When booking your flat
1. Option fee
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In case you didn’t know, you’ll have to pay an option fee when you select your flat. The option fee is $2,000 for 4-room flats and bigger, $1,000 for 3-room flats, and $500 for 2-room Flexi flats.
2. Optional Component Scheme (OCS)
Image credit: THESUAKUS
At the flat booking appointment, you can indicate whether you’d like to sign up for the Optional Component Scheme, which includes sanitary fittings, internal doors, and floor finishes for flats of 3-room size and bigger.
According to HDB, this is how much each OCS component costs:
| Flat type | Flooring | Finishes and internal doors |
| 3-room | $3,340 | $2,770 |
| 4-room | $4,970 | $3,180 |
| 5-room | $6,060 | $3,180 |
Being part of the OCS can help you save on your renovation budget. But if you plan it well, you can still save on your HDB BTO renovation even when you opt out of the OCS.
When signing your lease agreement
Aside from paying the downpayment, or part of it, when signing the lease agreement, you’ll have to fork out fees for stamp duty and conveyancing.
3. Buyer’s Stamp Duty (BSD)
Image credit: The Smart Local
The BSD that you’ll have to pay depends on the price of your flat. The BSD is rounded down to the nearest dollar. You could use the IRAS Stamp Duty Calculator or manually calculate how much you have to pay with the BSD formula:
- First $180,000: 1%
- Next $180,000: 2%
- Next $640,000: 3%
- Next $500,000: 4%
- Next $1,500,000: 5%
- Remaining amount: 6%
For example, a $500,000 BTO flat will require you to pay:
$1,800 (1% for the first $180,000) + $3,600 (2% for the next $180,000) + $4,200 (3% of the remaining $140,000) = $9,600
4. Conveyancing fee
Image credit: The Smart Local
Check the estimated HDB conveyancing fee payable using an online tool or do the not-so-quick math yourself:
- First $30,000: $0.90 per $1,000
- Next $30,000: $0.72 per $1,000
- Remaining amount: $0.60 per $1,000
5. Other legal fees
Besides all of the above, there are yet other legal and registration fees you’ll have to factor in too:
- Lease In-Escrow registration fee: $38.30
- Mortgage In-Escrow registration fee (if you are taking a home loan): $38.30
- Title search fee: $32
- HDB Caveat Registration fee: $128.90
- Survey fee: $162-$405
You can refer to the CPF website for more information on the fees required when you purchase your flat.
When collecting your keys
6. First-month town council fee
Image credit: The Smart Local
When you collect your keys, you’ll have to pay for the first month of your town council fees. Also known as Service and Conservancy Charges (S&CC), this varies based on your HDB estate, flat type, citizenship, and whether you are eligible for reduced rates. You can expect to pay around $50-$70 for a 3-room flat, $70-$85 for a 4-room flat, and $80-$90 for a 5-room flat.
For as long as you live in your BTO flat, these town council fees are payable on the first day of each month. They go towards HDB’s monthly maintenance costs for cleaning and keeping your estate safe and well-maintained.
7. HDB fire insurance
HDB fire insurance is different from home insurance. The former is compulsory and only covers HDB’s structural damages and built-in fixtures and fittings, whereas the latter is optional and insures and protects your belongings. Costs of home insurance packages vary according to the extent of coverage and size of your home.
| Flat type | 5-year HDB fire insurance premium (including GST) | Amount insured |
| 2-room Flexi flat | $1.99 | $37,900 |
| 3-room flat | $3.27 | $83,300 |
| 4-roof flat | $4.59 | $117,000 |
| 5-room flat | $5.43 | $144,800 |
Hidden costs of buying a HDB BTO flat
Of course, it’s not always about “pay, pay, pay” when it comes to BTO flats. First-timer families could be eligible for the Enhanced CPF Housing Grant (Families) of up to $120,000, depending on their income. There are also other HDB grants that you may qualify for, so you can do the math and go into your BTO purchase prepared.
For more content:
- French farmhouse makeover for a 4-room Yishun resale flat
- 5 most unique HDB layouts
- 7 best Taobao third-party forwarders
Cover image adapted from: The Smart Local
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