New Launch vs Resale Mortgage FAQs: Homejourney Guide

Mortgage for New Launch vs Resale Property: Frequently Asked Questions covers key differences in financing options like progressive payments for new launches and full loans for resale properties in Singapore. Understanding these helps buyers manage cash flow safely through platforms like Homejourney, prioritizing trust and transparency.

This cluster article supports our pillar content, New Launch vs Resale Mortgage: Complete Financing Guide for Singapore Buyers, by addressing common queries on new launch mortgage, resale property loan, BUC loans, and more. Homejourney verifies data from official sources like MAS and HDB to ensure confident decisions.

Key Differences in Mortgage Structures

New launch properties use progressive payment mortgage schemes, where payments align with construction milestones, easing upfront costs. Resale properties require a completed property loan, with full disbursement at completion, demanding immediate readiness.

For new launches, buyers pay 25% downpayment progressively, using CPF Ordinary Account savings over time. This suits first-time buyers building CPF balances. Resale demands 25% downpayment upfront, often via cash or CPF, per HDB and MAS rules under TDSR (Total Debt Servicing Ratio) at 55% and MSR (Mortgage Servicing Ratio) at 30% for HDB.

BUC loan (Buyer Under Construction) finances new launch purchases before TOP (Temporary Occupation Permit). Banks like DBS, OCBC, and UOB offer these at SORA-based rates, typically 3M compounded SORA plus 0.5-1% spread. View current rates from DBS, OCBC, UOC, HSBC, Standard Chartered, and more on Homejourney's bank rates page.

Loan Eligibility and Approval Process

Both options follow MAS TDSR guidelines: your total debt repayments cannot exceed 55% of gross monthly income. For new launches, banks assess based on progressive payments, offering higher borrowing power initially. Resale loans evaluate full monthly installments from day one.

Example: A $10,000 monthly income buyer qualifies for ~$600,000 new launch loan under MSR, but resale requires stronger reserves due to immediate payments. Use Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator for instant checks with Singpass integration.

New launches avoid COV (Cash Over Valuation) risks since sale price equals valuation. Resale may need top-up if valuation falls short, increasing cash needs. Homejourney's property search at https://www.homejourney.sg/search filters by budget and valuation trends.

Interest Rates and SORA Impact

SORA (Singapore Overnight Rate Average) replaced SOR in 2024 as the key benchmark. New launch BUC loans tie to 3M SORA (~3.0% as of Jan 2026), while resale completed property loans often use fixed packages for 2-3 years at 3.5-4%.

The chart below shows recent interest rate trends in Singapore:

As seen, SORA has stabilized post-2025 peaks, favoring fixed-rate resale loans for predictability. Compare offers from CIMB, RHB, Maybank, and partners via Homejourney's multi-bank submission.

Practical Steps: Choosing Your Loan

1. Assess Timeline: Need to move in soon? Opt for resale resale property loan. Can wait 3-4 years? New launch progressive scheme fits.
2. Check CPF Readiness: New launches allow CPF accrual; resale needs full Ordinary Account withdrawal upfront.
3. Calculate Affordability: Input income at Homejourney calculator to compare scenarios.
4. Apply Safely: Use Singpass on Homejourney bank-rates for verified, one-click multi-bank applications.
5. Monitor Rates: Track live SORA on Homejourney before locking in.

Real example: For The Sen new launch (Pasir Ris, ~$1.8M units), progressive payments spread 25% over milestones. A resale at Parc Esta (~$1.5M) requires full 25% (~$375K) now, per 2025 resale data showing stable volumes.

Risks and Homejourney Safeguards

New launches risk construction delays affecting payments; resale has defect liabilities post-purchase (caveat emptor). ABSD (Additional Buyer's Stamp Duty) applies equally: 17% for second properties in 2026.

Homejourney prioritizes safety with verified bank partners and transparent comparisons. Connect with our mortgage brokers via bank-rates page for personalized advice. Disclaimer: This is general info; consult professionals for tailored financial plans.

Frequently Asked Questions

1. What is a BUC loan for new launches?
BUC (Buyer Under Construction) finances progressive payments pre-TOP. Rates start at SORA+0.5%; apply via Homejourney for DBS/OCBC quotes.

2. Can I use the same bank for new launch and resale?
Yes, but new launch needs BUC endorsement; resale is standard. Homejourney's multi-bank tool compares all.

3. How does CPF usage differ?
New launches grant time for CPF growth; resale depletes accounts immediately. Check limits on HDB site via Homejourney resources.

4. Are new launch mortgages cheaper long-term?
Not always; progressive ease upfront but full mortgage hits at TOP. Resale offers negotiation but immediate burden.

5. When to refinance post-purchase?
After 2 years; use Homejourney for simplified process. See related: Bridging Loan Guide.

Ready to compare? Visit Homejourney bank-rates for safe, trusted mortgage options. Link back to our pillar for full guide: New Launch vs Resale Mortgage Guide.