A practical checklist for buyers who want zero surprises at the lawyer’s office.
Most home buyers obsess over the purchase price and monthly mortgage instalment — and then get blindsided by upfront costs. Stamp duty, legal fees, valuation fees, and cash/CPF timing can add up fast, especially in markets where stamp duty uses progressive tiers.
This guide shows you how to budget the real cost of buying, using Singapore’s Buyer’s Stamp Duty (BSD) as a clear, concrete example. Even if you’re buying elsewhere, the same approach applies: understand your tax/fees, map the payment timeline, and keep a safety buffer.
1) Know the Upfront Cost Buckets (Not Just the “Downpayment”)
Before you even shortlist units, break your upfront cash needs into buckets. The exact items differ by country and deal structure, but the categories below show up in most transactions:
- Deposit and option/exchange payments (often time-sensitive).
- Stamp duty / transfer taxes (often due shortly after signing).
- Legal / conveyancing fees (and sometimes disbursements).
- Valuation fee (commonly required for financing).
- Agent fees (depends on market; in many places, buyers may pay none, but confirm).
- Moving costs, renovation, furniture/appliances, and a contingency buffer.
The point is simple: the purchase price is only one number. If you don’t budget the timing of these payments, you can be forced to scramble for cash, delay completion, or compromise on financing.
2) What “Stamp Duty” Really Means
“Stamp duty” is a tax on the legal documents used to transfer property. Some places charge a flat rate; many charge progressive tiers (like income tax), where different slices of the price are taxed at different rates.
In Singapore, Buyer’s Stamp Duty (BSD) is computed on the higher of the purchase price or the market value. That detail matters if you negotiate an unusual price or if the valuation comes in higher than expected.
For the official BSD definitions, tiers, and examples, see IRAS’ Buyer’s Stamp Duty (BSD) page.
3) Singapore BSD in Plain English (Progressive Tiers)
Instead of applying one percentage to the full price, BSD uses tiers. That means your “effective” BSD rate is always lower than the highest tier you touch.
Here’s the common way buyers think about it:
- Split the property value into tier “slices”.
- Apply the correct rate to each slice.
- Add them up to get the total BSD.
Example: If a home is bought at S$1,500,000 (and market value is the same), the BSD is:
| Tier slice | Slice amount (S$) | Rate | Duty (S$) |
| First 180,000 | 180,000 | 1% | 1,800 |
| Next 180,000 | 180,000 | 2% | 3,600 |
| Next 640,000 | 640,000 | 3% | 19,200 |
| Next 500,000 | 500,000 | 4% | 20,000 |
Total BSD in this example: S$ 44,600.
If you’re comparing multiple homes at different price points, doing this manually every time is error-prone — and mistakes often happen at the tier boundaries.
4) Use a Calculator When You’re Shortlisting (It’s a Speed Advantage)
At the viewing-and-offer stage, speed matters. You want to sanity-check the BSD impact quickly so you don’t fall in love with a unit that blows up your cash plan.
A simple workflow that works well:
- Keep a rough budget range for property price (e.g., S$1.2M to S$1.6M).
- Run BSD estimates across that range.
- Add a conservative buffer for legal/valuation and near-term cash needs.
- Only then decide what offer price you’re comfortable with.
If you’d like a quick, buyer-friendly estimate, you can run the numbers with this Buyer’s Stamp Duty calculator (especially useful when you’re comparing several properties back-to-back).
5) Don’t Separate “Taxes” From “Affordability”
A common trap: buyers only check whether they can service the monthly loan, then treat stamp duty as a footnote. In reality, upfront duties can change how much cash you must keep aside — which can affect how much you borrow, how large your buffer is, and whether you’re stretching too far.
In Singapore, loan eligibility is also guided by macro-prudential rules such as the Total Debt Servicing Ratio (TDSR). It’s worth understanding how your overall debt obligations affect your maximum loan, so you don’t commit to a purchase price that forces painful compromises.
For an official overview of the TDSR framework, refer to MAS’ explainer on TDSR for property loans.
6) A “No-Surprises” Checklist Before You Make an Offer
- Confirm what counts as the property value for duty purposes (purchase price vs market value rules).
- Estimate stamp duty early, not after you decide on the unit.
- Plan your payment timing: what’s due on option/exchange, what’s due later, and what must be cash vs CPF.
- Budget legal/valuation fees and add a contingency buffer (renovations and moving are almost always underestimated).
- Stress-test your loan and monthly repayment with a conservative interest-rate assumption.
- Avoid committing every spare dollar — keep an emergency fund even after completion.
7) Common Mistakes That Cost Buyers Money (and Sleep)
- Mixing up “highest tier rate” with your effective rate — progressive tiers do not apply one flat rate to the whole price.
- Forgetting that duties can be based on the higher of purchase price or market value.
- Underestimating cash timing: even when CPF can be used for some costs, you may need cash first and reimburse later.
- Treating stamp duty as “small enough to ignore” — it often rivals (or exceeds) legal and valuation fees combined.
- Not leaving room for life: emergencies, job changes, and family expenses still happen after you buy.
Final Thought
The best property decisions feel calm, not rushed. When you can see the full picture — duties, fees, timing, and a buffer — you negotiate with confidence and avoid buyer’s remorse.
Before you commit to any offer, do one last check: “If my timeline shifts or a cost comes in higher, do I still have breathing room?” If the answer is yes, you’re buying from a position of strength.
