Marketing, CPF & Finance Cheat Sheet for RES Exam Revision

Basic Withdrawal Limit (BWL): The maximum CPF amount that can be withdrawn for property purchase, calculated as the lower of (a) Valuation Limit or (b) actual purchase price. Valuation Limit (VL): 120% of purchase price or property valuation, whichever is lower. Withdrawal Limit (WL): Capped at VL minus cash proceeds from previous property sales.

CPF Usage Priority: Ordinary Account (OA) funds must be used before Special Account (SA) funds. Members can withdraw up to 100% of the property price or valuation (whichever is lower) using CPF, subject to the BWL. For second and subsequent properties, total CPF withdrawal is limited to the BWL minus the outstanding CPF amount used for the first property.

Accrued Interest: Must be refunded to CPF upon property sale, calculated at 2.5% per annum compounded yearly. Members aged 55 and above must set aside the prevailing Full Retirement Sum before using CPF for property purchases.

Enhanced CPF Housing Grant (EHG): Up to S$80,000 for first-timer families buying resale HDB flats. Income ceiling: S$9,000 monthly household income. Grant amount decreases as income increases.

Proximity Housing Grant (PHG): S$30,000 for families or S$15,000 for singles buying resale flats to live with or near parents/married children. Must live within 4km of each other or in the same town.

Step-Up CPF Housing Grant: Up to S$15,000 for lower-income families upgrading from smaller to larger resale flats. Income ceiling: S$14,000 monthly household income.

Key Eligibility Criteria: Must be Singapore Citizens, first-timer applicants for most grants, meet income ceilings, occupy the flat for minimum 5 years (Minimum Occupation Period), and not own or dispose of other properties within 30 months before flat purchase. Grants are only for resale HDB flats, not private properties.

Housing Loans from Financial Institutions: Maximum 75% LTV for first housing loan. For second and subsequent loans: 45% LTV if loan tenure exceeds 30 years or extends beyond age 65, otherwise 55% LTV.

HDB Concessionary Loans: Maximum 90% LTV for HDB flats purchased directly from HDB (BTO, SBF). Loan tenure capped at 25 years or up to age 65, whichever results in shorter tenure.

CPF Usage with Bank Loans: When taking bank loans, borrowers can use CPF to pay the cash downpayment portion. Minimum 25% cash/CPF downpayment required for first property (with at least 5% in cash). For second properties, minimum 25% downpayment with at least 25% in cash (no CPF allowed for downpayment).

LTV Impact on Financing: Lower LTV ratios mean higher downpayment requirements, directly affecting buyers' purchasing power and cash flow planning. These cooling measures aim to prevent over-leveraging.

TDSR Threshold: Total monthly debt obligations cannot exceed 55% of gross monthly income. Applies to all property loans from financial institutions (banks, finance companies) since June 2013.

Debts Included in TDSR Calculation: All property loans, car loans, student loans, credit card debt, personal loans, and other credit facilities. Calculate using the higher of (a) 3.5% per annum interest rate or (b) actual loan interest rate, plus 1% buffer.

Income Computation: Based on gross monthly income including fixed allowances, bonuses (averaged over 12 months), and rental income (if applicable). Variable income requires longer track record for assessment.

TDSR vs MSR: Mortgage Servicing Ratio (MSR) at 30% applies only to HDB flats and Executive Condominiums, calculated separately from TDSR. Borrowers must meet both TDSR and MSR requirements when purchasing HDB properties. TDSR is more comprehensive, covering all debts; MSR focuses solely on property loan obligations.

CEA Advertising Requirements: All property advertisements must include the salesperson's registration number and agency name. False, misleading, or deceptive advertising is strictly prohibited under the Estate Agents Act.

Prohibited Marketing Practices: Cannot advertise properties without owner's consent, misrepresent property details (size, tenure, facilities), guarantee rental yields without basis, or use superlatives without substantiation. "Rental guaranteed" claims require documented evidence.

Online Marketing Compliance: Social media posts, property portals, and websites must comply with CEA guidelines. Screenshots of private conversations with clients cannot be shared without consent. Personal data protection rules apply—client information must be kept confidential.

Comparative Marketing: Can compare properties but must ensure accuracy and fairness. Avoid disparaging competitors or their listings. Price representations must be accurate—cannot advertise significantly different prices from actual asking price to generate false leads. All visual representations (photos, floor plans) must be current and accurate.

Interest Rate Types: Fixed rate (locked for initial period, typically 2-5 years), Floating rate (pegged to SORA, SOR, or board rates), and Fixed-then-Floating combinations. SORA (Singapore Overnight Rate Average) has replaced SOR as the standard benchmark.

Lock-in Period: Typically 2-5 years. Early redemption during lock-in incurs penalties, usually 1.5% of outstanding loan amount. Partial prepayment limits may apply.

Key Mortgage Costs: Legal fees (approximately S$2,500-S$3,000), stamp duty on mortgage (0.4% of loan amount or property value, whichever is higher), valuation fees (S$300-S$500), and fire insurance (mandatory for HDB loans).

Refinancing Considerations: Can refinance after lock-in period expires. Compare Effective Interest Rate (EIR) across packages—includes all fees and charges. Refinancing costs include legal fees, clawback of cash rebates from original loan, and new valuation fees. Calculate break-even point before refinancing.

Valuation Methods: Comparison Method (most common for residential properties—compares recent transactions of similar properties), Investment Method (capitalizes rental income using yield rates), Cost Method (land value plus construction costs minus depreciation), and Residual Method (for development sites).

Factors Affecting Valuation: Location, property size (built-up vs. land area), tenure (freehold vs. leasehold), age and condition, floor level, facing direction, proximity to amenities, recent transaction prices of comparable properties, and market conditions.

Professional Valuation Requirements: Banks require professional valuations by approved valuers for loan applications. Valuation reports typically valid for 3 months. If valuation is lower than purchase price, buyers must cover the difference in cash.

Pricing Strategy: Analyze recent transacted prices (not just asking prices) of comparable properties within the same development or nearby. Consider price per square foot (psf) benchmarks. Factor in property-specific attributes that command premiums or discounts.

Buyer's Stamp Duty (BSD): Progressive rates—1% on first S$180,000, 2% on next S$180,000, 3% on next S$640,000, 4% on next S$500,000, 5% on next S$1.5 million, and 6% on remaining amount above S$3 million. Calculated on higher of purchase price or market value.

Additional Buyer's Stamp Duty (ABSD): Singapore Citizens pay 0% (first property), 20% (second), 30% (third and subsequent). Singapore PRs pay 5% (first), 30% (second and subsequent). Foreigners and entities pay 60% for any residential property. Remission available if selling existing property within 6 months of new purchase (for Singapore Citizens only).

Seller's Stamp Duty (SSD): Applies to residential properties sold within 3 years of purchase. Rates: 12% (within first year), 8% (within second year), 4% (within third year). Based on higher of sale price or market value.

Stamp Duty Payment: Must be paid within 14 days of signing Sale & Purchase Agreement or exercising Option to Purchase.

Standard Commission Rates: Typically 2% of transaction price for residential properties (1% from seller, 1% from buyer), though rates are negotiable and not fixed by law. Commercial properties may command different rates based on complexity.

Co-broking Arrangements: When two agencies are involved, commission is typically split 50-50 between representing agents, but actual splits are negotiable. Must be documented in co-broking agreements.

Commission Payment Terms: Usually payable upon completion of transaction (when keys are handed over and full payment received), not at signing of Sale & Purchase Agreement. Payment terms should be clearly stated in estate agency agreements.

GST on Commission: Estate agency services are subject to 9% GST (current rate). Agencies registered for GST must charge and collect GST on commission earned. Salespersons should clarify whether quoted commission rates are GST-inclusive or exclusive.

Practice Tip: The Prepare app offers 145 practice questions specifically on Marketing, CPF & Finance topics, plus comprehensive coverage across all 13 RES exam topics to help you master these numerical thresholds and regulations.