Mortgage for New Launch vs Resale Property: Key Differences
New launch properties use progressive payment mortgages with smaller initial payments tied to construction milestones, while resale properties require a completed property loan with full upfront financing.
Homejourney prioritizes your safety by verifying all mortgage data, helping you compare options transparently. This cluster answers top FAQs on new launch mortgage vs resale property loan, linking to our pillar guide on New Launch vs Resale Property Mortgages: Homejourney Guide 2025 for full coverage.
Understanding these helps first-time buyers and upgraders avoid pitfalls under MAS TDSR (Total Debt Servicing Ratio) and MSR (Mortgage Servicing Ratio) rules.
What is a BUC Loan for New Launches?
A BUC loan (Buyer’s Under Construction loan) finances new launch purchases before completion. Payments follow the developer’s progressive schedule—typically 5-10% at booking, more at construction stages—reducing early cash outflow.
For example, in 2025 OCR new launches like those averaging S$2,100–S$2,300 PSF, you pay 25% on signing, then progressively up to TOP.[7] Banks like DBS, OCBC, and UOB offer these, often at fixed rates initially.
Actionable tip: Use Homejourney’s mortgage calculator to model progressive payments. Compare live rates from DBS, OCBC, UOB, HSBC, and more at Homejourney bank rates.
How Does Resale Property Financing Differ?
Resale property loans fund completed units immediately, with 100% of the loan disbursed at completion. No progressive stages—full repayment starts right away, suiting buyers needing quick move-in.
Resale condos in OCR often match new launch PSFs at S$2,200+, but offer negotiable prices and established amenities.[5] HDB resale follows similar rules, capped at 75-90% LTV under MAS guidelines.
Pro: Immediate occupancy. Con: Higher initial outlay. Calculate affordability on Homejourney to stay under 55% TDSR.
Progressive Payment Mortgage: Pros and Cons
Progressive payment mortgages for new launches spread costs over 3-5 years, easing cash flow. Example: For a S$1.5M unit, initial payments might total 20-30% before bank loan kicks in fully.[1]
However, you may rent elsewhere (S$4,000-6,000/month in city-fringe), adding costs. Factor this into total ownership math—Homejourney’s tools help simulate scenarios.
- Pro: Lower early interest; potential appreciation by TOP.[1]
- Con: Construction risks, rental offset.
- Tip: Choose if quantum near TOP resale (e.g., District 12 projects).[2]
Loan Eligibility and CPF Usage Rules
Both options follow MAS rules: Max 75% LTV for first property, 45% for second. CPF Ordinary Account usable up to loan quantum, but new launches tie releases to progressives.
For HDB resale, MSR caps at 30% income; bank loans add TDSR at 55%. 2025 SORA rates (3M ~3.0-3.5%) influence floating loans—track on Homejourney.
Decoupling buyers note implications: See Decoupling Property Mortgage Implications FAQ | Homejourney . Use Singpass on Homejourney for instant eligibility checks.
Costs Comparison: New Launch vs Resale
| Aspect | New Launch (BUC) | Resale (Completed) |
|---|---|---|
| Payment Structure | Progressive (5-55% pre-TOP) | Full upfront |
| Move-in Time | 3-5 years[2] | Immediate |
| Price Premium | 10-20% higher[2] | Negotiable |
| Risk | Delays, defects warranty | As-is condition |
ABSD adds 17% for second properties (Singles 8% first). Homejourney verifies data for safe decisions—search budgets at property search.
Actionable Steps to Choose Your Mortgage
- Assess timeline: Need home now? Resale. Can wait? New launch.
- Compare rates: View DBS to Maybank on Homejourney bank rates.
- Calculate: Use our calculator for TDSR/MSR fit.
- Apply multi-bank: One-click via Singpass—get offers fast.
- Consult: WhatsApp Homejourney for personalized advice.
Disclaimer: Rates fluctuate; consult professionals. Homejourney provides tools, not financial advice.
Frequently Asked Questions
Can I use the same bank loan for new launch and resale?
Yes, banks like UOCB, DBS offer both BUC and completed loans. New launches use progressive; resale full disbursement. Compare packages on Homejourney.[1]
Is new launch mortgage cheaper overall?
Not always—progressives ease cash flow but add rental costs (S$50K+ over 3 years). Resale avoids wait but demands full quantum upfront. Model on our calculator.[1]
What if TOP delays affect my loan?
Developers cover extensions; banks adjust progressives. Full defects liability protects you—unlike resale 'as-is'.[2]
HDB vs Private: Mortgage differences?
HDB loans (2.6% fixed) for flats; banks for condos. Private new launches follow SORA; resale negotiable. Check eligibility on Homejourney.
How to refinance post-purchase?
Lock fixed rates now (2025 ~3.5% p.a.). Refinance via Homejourney’s multi-bank process after 2-3 years. See decoupling guide: Decoupling Property Mortgage Implications Cost Guide | Homejourney .
Ready for confident decisions? Start with Homejourney bank rates, calculate eligibility, and apply securely. Trust Homejourney for verified insights—your safe path to property success. Dive deeper in our pillar: New Launch vs Resale Property Mortgages: Homejourney Guide 2025 .
