A comparative study of loan packages for executive condominiums
Wong, Chee Cheong
Chew, Anthony Chwee Kim
Ang, Ben Siew Hock
Date of Issue1997
College of Business (Nanyang Business School)
Executive Condominium (EC) is the latest form of housing introduced by the Singapore Government to meet the growing demand for better quality housing from graduates and young professionals. This scheme provides a quasi-private form of housing that is similar in design and quality to mid-range private condominiums. ECs are sold with strata titles restrictions. For the first 5 years, buyers are required to physically occupy the EC. After this, the EC unit can be sold only to Singapore Citizens and Permanent Residents. After an additional 5 years, all restrictions will be lifted and the EC will be fully privatised. The low HDB financing rates are also not available for the purchase of EC. Purchasers have to resort to commercial mortgage loan financing at current market rates, up to a maximum loan quantum of 80 per cent of the purchase price or valuation, whichever is lower.
NANYANG TECHNOLOGICAL UNIVERSITY