A
- ABSD (Additional Buyer's Stamp Duty)
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A tax levied on top of Buyer's Stamp Duty (BSD) for certain profiles of residential property buyers in Singapore, including foreigners, entities, and Singapore Citizens/PRs purchasing their second or subsequent properties. Rates vary based on buyer profile and property count. Refer to our BSD & ABSD Guide for details or estimate it with our Stamp Duty Calculator.
- AIP (Approval-in-Principle) / IPA (In-Principle Approval)
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A preliminary assessment by a bank indicating how much they are willing to lend you for a home loan, based on your financial information. It's not a formal loan offer but helps in financial planning. Learn more in our Mortgage Loans Guide.
- Amortization
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The process of paying off a debt (like a mortgage) over time through regular instalments. Each payment typically covers both principal and interest. Our Mortgage Calculator shows an amortization schedule.
- Annual Value (AV)
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The estimated gross annual rent of a property if it were to be rented out, excluding furniture, furnishings, and maintenance fees. It is determined by IRAS and used for calculating property tax.
B
- BSD (Buyer's Stamp Duty)
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A tax paid on documents executed for the purchase or acquisition of property in Singapore. Calculated based on the higher of the purchase price or market value. See our BSD & ABSD Guide or estimate with our Stamp Duty Calculator.
- BRS (Basic Retirement Sum)
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An amount CPF members need to set aside in their Retirement Account at age 55 to receive monthly payouts in retirement. Affects CPF usage for second/subsequent properties. Details in our CPF Usage Guide.
- BTO (Build-To-Order)
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A HDB flat purchase scheme where flats are built only after a certain demand is met. Buyers apply for a flat in a specific project and wait for its construction.
C
- Caveat (Lodging a Caveat)
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A legal document lodged with the Singapore Land Authority (SLA) by a buyer after obtaining the Option to Purchase. It serves as a public notice of the buyer's interest in the property and prevents the seller from dealing with the property in a way that might prejudice the buyer's interest.
- CPF (Central Provident Fund)
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A comprehensive social security savings plan for Singaporeans and PRs. Savings in the Ordinary Account (OA) can be used for housing. See our CPF Usage Guide and CPF Withdrawal Calculator.
- Conveyancing
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The legal process of transferring property ownership from one party to another. This is typically handled by a conveyancing lawyer.
- COV (Cash-Over-Valuation)
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Applicable to HDB resale flats, COV is the difference between the agreed resale price and HDB's official valuation of the flat, if the price is higher. This portion must be paid in cash by the buyer.
L
- LTV (Loan-to-Value) Ratio
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The maximum loan amount a financial institution will lend for a property, expressed as a percentage of the property's value or price (whichever is lower). Affects your downpayment. Discussed in our Mortgage Loans Guide.
- Leasehold
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A form of property tenure where ownership is for a fixed period (e.g., 99 years, 999 years). Most HDB flats are 99-year leasehold. Many private properties are also leasehold.
M
- MSR (Mortgage Servicing Ratio)
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Applicable to HDB flats and ECs bought from developers. It limits the monthly mortgage instalment to 30% of the borrower's gross monthly income. See our Mortgage Loans Guide.
O
- OTP (Option to Purchase)
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A legal agreement where a seller grants a buyer the exclusive right to purchase a property at an agreed price within a specified period (Option Period), in exchange for an Option Fee (typically 1%).
S
- SORA (Singapore Overnight Rate Average)
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A benchmark interest rate used for many floating rate home loans in Singapore. It's based on the average rate of unsecured overnight interbank SGD transactions. More info in our Mortgage Loans Guide.
- S&PA (Sale and Purchase Agreement)
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A legally binding contract detailing the terms and conditions of a property sale between the buyer and seller. For private properties, the OTP becomes the S&PA once exercised.
T
- TDSR (Total Debt Servicing Ratio)
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A framework limiting a borrower's total monthly debt repayments (including the new home loan) to 55% of their gross monthly income. Affects loan eligibility. Explained in our Mortgage Loans Guide and our Affordability Calculator.
- Tenure (Property)
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Refers to the mode of land ownership, e.g., Freehold (ownership indefinitely) or Leasehold (ownership for a fixed period like 99 or 999 years).
- Tenure (Loan)
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The duration over which a loan (e.g., mortgage) is to be repaid.