Decoupling Calculator – Calculate cost of decoupling with ease

Decoupling Calculator

Table of Contents

Start using the decoupling calculator to work out the key numbers necessary for decoupling

At any point in time if there are any inputs that you are unclear of, feel free to refer to section below for more insights on how to find the necessary information to key into the calculator.

But if spending the next 30mins working on your own decoupling calculation is not your thing. Drop us a text and we can do it for you.

How to find the necessary information to input into the calculator ?

Property valuation

There are many property valuation tools available online to help you get a grasp of the market value of your property . A simple google search will bring up multiple tools, it would be optimal to cross check the valuation across a few of these tools.

Note. It is important to conduct the decoupling transaction using the property’s market value to ensure the decoupling process remains legit and free from legal complication down the road.

Existing Loan

To check the outstanding for your current property, simply log into your mortgage banking account and check outstanding loan quantum.

Buyer’s and Seller’s share in current property

If there has been no prior arrangement to change the manner of holding for your current property, by default you would be adopting joint tenancy as the manner of holding.For joint tenancy, a 50-50 share holding structure will be adopted.

Loan to value ratio (LTV) (%)

To determine the input for LTV ratio. Assuming this is your only property loan.

LTV would be 75% for loan quantum not exceeding 30 years and LTV would be 55% if loan quantum exceeds 30 years.

Additional Buyer Stamp Duty (%)

You can assume a 0% ABSD if you are a Singaporean citizen and the current property is the only property you are holding on to.

If you are PR or a foreigner, refer to the following ABSD rate table

Profile of BuyerABSD Rates on or after 27 Apr 2023
Singapore Citizen (SC) 
SC buying first residential property0%
SC buying second residential property20%
SC buying third and subsequent residential property30%
Singapore Permanent Residents (SPR) 
SPR buying first residential property5%
SPR buying second residential property30%
SPR buying third and subsequent residential property35%
Foreigner (FR) 
FR buying any residential property60%

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Seller Stamp Duty (%)

Seller stamp duty will be levied, if decoupling is to be executed if you have not held your current property for more than 3 years.

Refer to the following SSD rate table for more info.

Seller Stamp Duty for residential property purchased on and after 11 Mar 2017Duty (%)
Up to 1 year12%
More than 1 year and up to 2 year8%
More than 2 years and up to 3 years4%
More than 3 yearsNo SSD Payable

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CPF used with accrued interest – for spouse selling share

It will be important to note the amount of CPF used and its accrued interest. This will be the amount that needs to be refunded back into spouse CPF account after existing shares in property have been sold.

The CPF and its accrued interest can then be utilised for the purchase of the 2nd property.

But do note the timeline for CPF to flow back into spouse’s CPF account. It normally 3 to 4 weeks for funds to be disbursed back into CPF account.

To check CPF used and accrued interest to be eventually refunded back into selling party’s OA account, refer to the following steps

  • Head over to the following CPF login link
  • Sign in with your singpass
  • Head over to property dashboard and look our for CPF utilised and accured interest incurred

Legal Fee

Decoupling lawyer fees typically ranges from $4,500 to $6,000.

For a list of decoupling lawyers and related legal fees check out the following article.

Objective of the Decoupling Calculator

The goal of the decoupling calculator is to work out the following key financing and cost elements prior to decoupling.

Stamp duties to be incurred in the process of decoupling

  • Buyer stamp duty payable – to be incurred on the value spouse’s share to be bought over.
  • Seller stamp duty payable -to be incurred on the values of spouse’s share if property is sold within 3 years of purchase.
  • Additional buyer stamp duty payable – to be incurred if spouse buying over share is not a Singaporean citizen.

Down payment requirement

  • Cash down payment – 5% mandatory, factored over the market value of spouse share in current property.
  • Cash or CPF downpayment – remaining 20% of downpayment, payable via CPF or Cash

Loan requirement

  • Existing outstanding for current property – to be taken over by spouse buying over share.
  • New loan – additional to be taken up to cover purchase of spouse share.

Proceeds to be received by Spouse selling share.

  • Cash proceed – received from selling of share to spouse
  • CPF refund – amount of CPF spouse utilised on current property plus accrued interest to be refunded into spouse CPF account

For a detailed illustration of cost of decoupling and ways to minimise cost refer the following article.

Quick rehash of the decoupling process

The objective of decoupling is centred around the objective of freeing up one party’s name in a property that is jointly owned. This will allow the party whose name is delinked from the property to be deemed as a first time property owner, allowing him or her to purchase the second property without ABSD.

The process involves one spouse buying over the other spouse’s share in the current property through a process known as part purchase. The process mimics a typical buying and selling process for a private property, with the usual down payment and financing requirement to be worked out.

For more in-depth detail on the decoupling process refer to the following complete guide for decoupling property in Singapore.

A little bit about ourselves

We are team of real estate investor turned full time realtor. Our journey started as property investors finding all ways to purchase our second property without ABSD.

Having completed that journey and enjoying the fruit of running a duo property porfolio. We now specialise in helping like minded investor decouple their property.

Next Steps

With your preliminary calculation done you potentially be looking to take the following next steps

#1 – Confirm your calculation with a second opinion

Having went through the decoupling process with multiple property owners, we know the drill, it is always reassuring to run through the numbers with a second pair of “experienced” eyes.

Drop us a text to confirm your financial calculation

#2 – Know the steps and timeline required for decoupling

#3 – Figure out ways to minimise the cost of decoupling property

#4 – Explore the best property type you should consider as second property

#5 – Find the best lawyers to help you in decoupling

#6 – Avoid common pitfalls in decoupling

#7 – For readers that are non Singapore citizen

More reads, more gains ?

Kudos on making it this far. The fact that you have invested the last 5 mins reading this article. We believe you are a like minded real estate investor looking to beat the rat race by getting more out of your real estate investment.

If so, do check out the following articles.

Author

  • Jue Wen

    Jue Wen is the content marketing lead. This means he spend his waking hours researching and writing all things real estate. He believes life is a hustle and there is no joy in grinding away daily in our little rat races. He believes making wise moves in real estate investment can be a game changer. Aside from writing all things real estate, you can find him in your nearest bouldering gym.

Looking to purchase your second property?

Just fulfilled your MOP status for your executive or BTO or Looking to decouple from your current condomium? Or simple looking to purchase your 2nd investment property? Having assisted over 50 clients on their journey towards purchasing their second property, we have got the expertise to help you avoid unnecessary ABSD, optimise legal cost and clarify your doubts.

Drop us quick Whatsapp message for non obligator questions and answers.

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Jue Wen

Author

Jue Wen is the property analyst and content marketing lead at decoupling expertise.
He specialises in helping clients overcome the complexities involved in owning their second private property in Singapore.
He had over 10 years of experience in real estate investing and have written over 40 detail guides on decoupling and minimising ABSD. He is a licensed real estate consultant and holds a Bachelor degree in Business Management from the Nanyang Technological University.

Kenji

Co-Author

Kenji is the Group Division Director of ERA Realty Network.
He have got over 20 years of experience in real estate and have successfully helped over 50 couples purchased their second property. He specialises in helping client achieve the best approach towards acquiring their ideal investment properties while minimising ABSD.