Many buyers only realise they have made costly Executive Condominium (EC) mistakes after they’ve paid a 5% option fee or even signed the Sale & Purchase Agreement. In 2025, with new EC launches in Singapore averaging around S$1,300–S$1,700 psf and 3-bedders commonly crossing S$1.3M, a single misstep can mean tens of thousands of dollars lost.[2][4] Homejourney’s goal is to help you avoid these Common Executive Condominium EC Complete Buying Guide 2025 Mistakes so you can buy safely, confidently, and with full information.
This cluster guide zooms in on the most frequent EC Singapore errors we see from first-time buyers, HDB upgraders and investors, and links back to the main pillar resource: Executive Condominium (EC) Complete Buying Guide 2025 – Homejourney Singapore Executive Condominium (EC) Complete Buying Guide 2025 – Homejourney Singapore .
1. Misunderstanding EC Eligibility Rules and MOP Timelines
One of the biggest mistakes is assuming EC eligibility is the same as buying a private condo. It is not. ECs sit in a grey zone: they are built and sold by private developers but governed by HDB rules for the first 5–10 years.[1][2]
Key EC eligibility requirements buyers often overlook
Based on HDB guidelines, to buy a new EC from a developer, you must:[1][2][3]
- Form a valid family nucleus under an HDB scheme (e.g. Public Scheme, Fiancé/Fiancée Scheme, Orphans Scheme).
- Have at least 1 Singapore Citizen and at least 1 other Singapore Citizen or PR in the household.[1]
- Be at least 21 years old (35 if buying under Joint Singles Scheme).[1][3]
- Meet the income ceiling of S$16,000 monthly household income for new ECs.[1][2]
- Not own or have disposed of private property within the last 30 months before EC application.[3]
On the ground, I often meet couples in developments like North Gaia or Lumina Grand who only realise at booking that one partner owned an overseas apartment within the last 30 months – this disqualifies them from buying a new EC even if that property was not in Singapore.
MOP rules many buyers misjudge
Another common mistake is misreading Minimum Occupation Period (MOP) rules. For new ECs:
- You must stay in the EC for 5 years from key collection before you can sell it on the open market or rent out the whole unit.[2][3]
- From Years 6–10, you can only sell to Singapore Citizens or PRs who meet HDB eligibility.
- After 10 years, the EC becomes fully private and can be sold to foreigners.[1][2]
For HDB upgraders in estates like Punggol, Sengkang or Bukit Batok, a typical mistake is underestimating how the MOP overlaps with their existing HDB flat’s MOP or sale timeline. Always verify your exact MOP status and EC rules on the HDB site or with a trusted salesperson.
2. Underestimating Total EC Affordability and Financing Rules
Because ECs are marketed as “cheaper condos”, many buyers assume they are automatically affordable. In 2025, however, new EC 3-bedroom units typically range from about S$1.3M to S$1.95M depending on location and level.[4] That is still a major financial commitment.
Key financing constraints specific to ECs
New ECs are not eligible for HDB loans; you must use a bank loan and comply with:
- Minimum 25% downpayment, of which at least 5% must be in cash (remaining 20% cash/CPF).[2]
- Loan-to-Value (LTV) limits set by MAS for bank loans (up to 75% if you have no outstanding housing loans).[4]
- Mortgage Servicing Ratio (MSR): 30% cap of your gross monthly income for EC housing loan repayments, as ECs are treated like HDB for MSR.[2]
- Total Debt Servicing Ratio (TDSR): 55% of gross monthly income across all debts (car loans, student loans, credit cards and the EC mortgage).[2]
Homejourney strongly recommends using our financing tools and comparing bank packages via Bank Rates or Mortgage Rates before you pay your 5% option fee. Many buyers only discover MSR/TDSR issues after committing to a unit.
Insider tip: Stress-test your numbers
A practical safeguard we use with clients is to simulate a interest rate 1–1.5% higher than the current package when working out monthly instalments. Given the interest rate volatility seen from 2022–2024, this buffer helps ensure you can still comfortably service the EC loan if rates rise.
3. Ignoring CPF, Grants and Cashflow Timing
Another frequent mistake is not aligning CPF usage, EC grants and cashflow with the EC payment schedule. ECs follow a progress payment scheme (if buying under construction), and mis-timing your finances can create serious stress.
CPF and grants pitfalls
Key points based on HDB and CPF rules:[1][2][4]
- First-timer EC buyers may qualify for CPF Housing Grants (Family Grant and Half-Housing Grant) depending on income and citizen/PR status.
- Grants reduce your purchase price but count into your CPF housing limits and affect your future property purchases.
- CPF Ordinary Account (OA) savings can be used for the 20% downpayment (after the 5% cash) and subsequent instalments.
- Using all your OA for the EC may leave you with no buffer for emergencies or other investments.
A typical real-life scenario: A couple in Tampines used almost their entire OA for the EC downpayment near Tampines North. When their HDB completion was delayed and renovation costs went up, they had to rely heavily on personal loans at higher interest. To avoid this, always keep an emergency CPF and cash buffer.
Cashflow timing for HDB upgraders
If you are selling an HDB to buy an EC, you must carefully sequence:
- When you exercise the EC Option (pay 5% cash).
- When you sign the S&P (additional 15% downpayment + BSD/ABSD).
- When you complete the HDB sale and receive your sale proceeds/CPF refunds.
Misaligning these timelines is one of the most stressful EC mistakes. Work closely with your banker, lawyer and salesperson, and use Homejourney’s calculators to map out each payment date.
4. Overlooking BSD, ABSD and Other Hidden Costs
Many buyers calculate only the purchase price and monthly instalments but ignore taxes and incidental costs, which can easily add 4–7% to the total outlay.
Stamp duties and taxes
For ECs, you must budget for:
- Buyer’s Stamp Duty (BSD) – tiered rates based on property price or market value, whichever is higher (MOF/IRAS schedule).
- Additional Buyer’s Stamp Duty (ABSD) – if you already own another property at the time of EC purchase, you may incur ABSD under current IRAS rules.
- Legal fees – conveyancing and loan documentation.
- Valuation fees – for bank loan processing.
- Property tax – owner-occupier versus non-owner-occupier rates differ; renting out leads to higher tax.[4]
This is where investors frequently miscalculate, especially if they intend to hold multiple properties. Refer to IRAS for the latest BSD/ABSD tables and consult a tax professional for complex cases. Homejourney always encourages users to independently verify tax figures from official sources.
5. Confusing EC vs Condo Value and Exit Strategy
Another common mistake is treating an EC as identical to a private condo from Day 1. While many ECs have similar facilities – pools, gyms, function rooms, security – their market behaviour and restrictions differ, especially in the first 10 years.[1][2][4]
EC vs condo: What buyers often overlook
From an investor’s point of view, the differences between EC vs condo matter: