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Executive Condo (EC)
Things to know when buying an EC
EC is part public, and largely private. It has a Minimum Occupation Period (MOP), so it is for own stay first. The exact MOP and privatisation timeline now depend on when the project’s land tender closed.
It is much cheaper as there are government subsidies, but that comes with restrictions. The income ceiling is $16,000 for earlier projects and $18,000 only for new units in projects whose land tender closes on or after 24 August 2026.
| Land tender closing date | Income ceiling | MOP | Full privatisation | DPS option |
|---|---|---|---|---|
| Before 8 May 2026 | $16,000 | 5 years | 10 years | May be offered |
| 8 May to 23 August 2026 | $16,000 | 10 years | 15 years | Not available |
| From 24 August 2026 | $18,000 | 10 years | 15 years | Not available |
The key date is the land tender closing date, not the launch date. Balance units in existing ECs do not move to the new $18,000 ceiling. Read HDB’s income-ceiling announcement, its MOP guidance, or our quick explanation.
It also has special privilege whereby you can continue staying in your HDB until you collected the keys to the new EC.
1st timer
If you never own a HDB before, this is a good subsidized housing to begin with.
You can still apply CPF Housing Grant.
2nd timer: Upgrading from HDB
Existing HDB owners often choose to upgrade to a new EC. But there many things to take note of:
- Resale Levy applicable (see below section) which can be up to $55k!
- Ballot quota: For sites tendered before 8 May 2026, at least 70% of units are set aside for first-timers at launch, leaving up to 30% for second-timers. For sites tendered from 8 May 2026, 90% is reserved for first-timers for the first 2 years.
Can you stay in your HDB until the EC is ready to move in? YES, you can. This is one big difference between EC and private condo. You can dispose your HDB after you moved into your new EC. For private condo, if you want to sell your HDB after moving in, you will have pay the hefty ABSD first (though you can get refund later).
Selling your HDB later comes with another issue – you cannot unlock your cash proceeds nor your CPF for the EC purchase. To solve that, read about Bridging Loan in later section.
Eligibility
HDB has the details, namely:
- Married: SC + SC/PR
- Singles: Jointly with at least 2 person, all must be SC above 35yo
- Total household income must fall within the $16,000 or $18,000 project-specific ceiling shown above
Working out the finances
Similar to private condo, you need to be able to afford the 25% Cash/CPF downpayment, while the max 75% can be covered by housing loan. How much you can loan is restricted by Mortgage Servicing Ratio (MSR) – that is at most 30% of your monthly income can be used to service the mortgage. This is more stringent than private condo whereby TDSR allows you to use up to 55% of your income.
It gets more complicated with the different scenarios. Do you sell HDB first? Should you going to use deferred payment scheme? Do you need bridging loan?
I will cover the topics in later sections.
But if you need someone to help work out the finances, you know who to look for.
Deferred Payment Scheme (DPS)
Developers may offer this for EC projects whose land tender closed before 8 May 2026. Newer EC projects do not offer DPS. A few private condos might offer DPS too.
The normal payment scheme is Progressive Payment Scheme (PPS), that is the loan amount is slowly disbursed while construction is ongoing. The effect is that before TOP, your mortgage is a much smaller amount.
DPS is different from PPS such that the loan amount is only needed upon TOP. The effect is that you will start paying the full mortgage only when you get your keys.
What’s the catch? Your purchase price will be (usually) 3% higher. You can treat it as a the mortgage interest that otherwise would be incurred by PPS.
Why some buyers choose DPS
Most choose DPS because
- You will escape paying mortgage for a few years, until TOP. You can raise cash during those years, and also a easier cashflow especially if you have an outstanding mortgage for the HDB.
- PPS requires you to take up a 2nd mortgage, which is subject to 45% LTV (instead of 75% for the 1st mortgage).
Payments & Mortgage for DPS
- Sign S&P: 20% (including 5% cash for booking)
- Upon TOP: 5% + max 75% loan
The LTV for the loan will have to deduct the “benefits”. Instead of the max 75% LTV, it is 75% less (80% of purchase price x Singapore Government Securities rate).
This is because the “benefit” is deferring paying 80% of the purchase price, and a fair interest rate has to be applied.
This will reduce the LTV, therefore a higher downpayment. If full 75% LTV, the downpayment is 5%. With a reduced LTV, you will need to pay that back in Cash/CPF.
It is also important to note that your loan is applied later, and your financial situation may be different. There is a risk eg. you lose your job/income and failed the TDSR requirement.
Bridging Loan
Bridging loan is a short term loan to help you “bridge” during your transition from HDB to the new EC. It is especially useful when used together with DPS.
For example, you might have a mortgage shortfall to apply for a loan at max LTV. If you have extra cash, then you can pay it off and take a smaller loan. But if you don’t have that extra cash, you can take a bridging loan first.
You can take up to the proceeds from your HDB sale, including CPF.
When you eventually sell the HDB, you can repay the bridging loan with the cash and CPF proceeds.
The max tenure of the bridging loan is 6 months (which is also the max time to dispose your HDB). You can also repay early, once you sell the HDB, without any penalty.
Resale Levy
Take Note: You may need to pay a levy if the EC is your 2nd subsidized housing; 1st being your HDB. The levy amount is based on the HDB type.
| Based on 1st flat type | Households Levy Amount |
|---|---|
| 2-room | $15k |
| 3-room | $30k |
| 4-room | $40k |
| 5-room | $45k |
| Executive Flat | $50k |
| Executive Condo | $55k |
For singles, the levy is half.
If you sell the HDB after you get your EC keys, then you pay the levy after you sell the HDB, with deduction from the proceeds of the sale. If you sell the HDB before you get your EC keys, then you pay upon collecting your EC keys.
You cannot use CPF to pay for the levy. Only Cash.
What is considered income?
As the monthly income ceiling is $16,000 or $18,000 depending on the project’s land tender date, many are excluded if earning more than the applicable amount. It is therefore crucial to understand how and what they consider as income.
The assessment will consider the last 12 months, and at least last 3 months if you are unemployed before that.
They will consider every income source – fixed salary, OT, bonus and even rental.
This eligibility assessment by HDB is different from bank’s assessment for loan. In bank assessment, they are calculating for TDSR & MSR. A key difference in bank assessment is that variable income will be subjected to a haircut of 30%.
If you’re self-employed, they will use your latest NOA.