Buyer Reference · Payments · 2026Progressive Payment Scheme Singapore:
How New Launch Payments Work (2026)
Buy a new launch condo in Singapore and you do not pay for it all at once — the law staggers payment across construction milestones, from a 5% booking fee to a final tranche at legal completion 3–4 years later. This guide sets out the exact statutory schedule, the timeline, how the mortgage disburses stage by stage, where CPF fits, and the stamp duty deadlines that run alongside.
1. What the Progressive Payment Scheme is
The Progressive Payment Scheme (PPS) is the payment structure prescribed for uncompleted private residential property sold by licensed developers, under the Housing Developers (Control and Licensing) Act and the Housing Developers Rules. Payments are tied to certified construction stages: the developer may only collect each tranche when an architect or engineer certifies that the corresponding stage is complete.
The structure protects buyers — money follows verified construction progress, and purchasers' payments are safeguarded through the project account regime — while giving developers financing visibility. It applies to new launch private condos and ECs; it does not apply to completed (resale) property, which is paid for in full at completion.
2. The statutory schedule, stage by stage
| Milestone | Payment | Notes |
|---|---|---|
| Option to Purchase (booking) | 5% | Cash only — secures the unit at the showflat |
| Sale & Purchase Agreement (within 8 weeks) | 15% | Cash and/or CPF OA; stamp duties due within 14 days |
| Completion of foundation | 10% | First stage typically drawing on the bank loan |
| Completion of reinforced concrete framework | 10% | Loan disbursement continues |
| Completion of partition walls | 5% | |
| Completion of roofing / ceiling | 5% | |
| Completion of door/window frames, wiring, plumbing | 5% | |
| Completion of car parks, roads, drains | 5% | |
| Temporary Occupation Permit (TOP) | 25% | Keys collected; unit can be fitted out and tenanted |
| Certificate of Statutory Completion + legal completion | 15% | Typically up to 12 months after TOP |
Statutory schedule under the Housing Developers Rules; stages sum to 100%. Individual projects may reach milestones in slightly different order depending on construction method, but percentages are fixed.
3. The timeline in practice
From booking to full completion typically spans 3–4 years for a mid-sized project: around 2–3 months from Option to S&P signing, roughly 24–36 months of construction to TOP, then up to 12 further months to CSC and legal completion. Larger projects and phased developments can run longer.
The practical consequence: the early years are payment-light. About 20% is committed in the first two months, and the heaviest tranches — 25% at TOP and 15% at CSC — arrive at the end, when the unit is at or near rentable condition.
Two schemes that let buyers defer even more were abolished after earlier speculative cycles: the Deferred Payment Scheme in October 2007 and the Interest Absorption Scheme in September 2009. The progressive schedule above is the standard route for new launches today.
4. How the loan disburses — and what it costs
A new launch mortgage is not drawn in one lump. The bank disburses each stage payment when certified, in a set order of funds: cash first, then CPF Ordinary Account savings, then loan. Interest accrues only on what has been disbursed — so instalments start small at the foundation stage and step up with each milestone.
This also concentrates rate exposure late: the bulk of the loan is drawn in the final stages, at whatever rates prevail then. Most new launch loans are floating-rate (SORA-pegged) during construction, as fixed-rate packages generally apply to disbursed amounts on completed properties. Where SORA and monthly repayments stand now is charted on the Cost of Money Tracker; LTV and TDSR mechanics are covered in the Home Loan guide.
5. The booking fee and your exit points
The 5% booking fee secures the Option to Purchase and must be paid in cash. If the buyer does not proceed to exercise the option, the developer refunds the booking fee less a forfeiture of 25% of it — i.e. 1.25% of the purchase price is lost. After the S&P is signed and stamped, walking away means losing substantially more under the agreement's terms. The decision point, in other words, is front-loaded: the showflat weekend is the cheap moment to change your mind; week nine is not.
6. Stamp duty and CPF alongside the schedule
Buyer's Stamp Duty and any Additional Buyer's Stamp Duty are due within 14 days of the executed agreement — they do not wait for construction milestones. For rates by buyer profile see the ABSD guide and Stamp Duty guide.
CPF Ordinary Account savings can fund stage payments and stamp duties after the cash booking fee, subject to CPF Board rules — including the Valuation Limit and, for leasehold property, lease coverage rules (full CPF usage requires the remaining lease to cover the youngest buyer to age 95). How housing costs relate to incomes over time is tracked by the PropKaki Affordability Index™.
This guide describes the statutory payment structure factually and is not financial advice. Financing outcomes depend on individual circumstances — loan packages, CPF balances, and TDSR headroom differ by buyer. Verify current rules with IRAS, CPF Board and your bank before committing.
Frequently asked questions
What are the Progressive Payment Scheme percentages in Singapore?
The statutory schedule under the Housing Developers Rules is: 5% booking fee (cash) on securing the Option to Purchase; 15% on signing the Sale & Purchase Agreement within 8 weeks; 10% on completion of foundation works; 10% on completion of the reinforced concrete framework; 5% each on completion of partition walls, roofing/ceiling, door and window frames with electrical wiring and plumbing, and car parks, roads and drains; 25% on Temporary Occupation Permit (TOP); and the final 15% on the Certificate of Statutory Completion and legal completion. The stages sum to 100% of the purchase price.
How much cash do I need upfront for a new launch condo?
The 5% booking fee must be paid in cash — it cannot come from CPF or a loan. Beyond that, the minimum cash component of the purchase depends on financing: with a bank loan at the maximum 75% LTV, the 25% downpayment must include at least 5% cash, with the remainder (up to 20%) allowed from the CPF Ordinary Account, subject to CPF rules. Buyers must also budget cash or CPF for Buyer’s Stamp Duty and any ABSD, payable within 14 days of the relevant agreement.
When do mortgage repayments start for a new launch condo?
Repayments begin once the bank makes its first disbursement — typically at the foundation stage, after the buyer’s cash and CPF portions are used up. Because the loan is drawn progressively, early instalments are small and cover interest and principal only on the disbursed amount. Repayments step up at each construction milestone as more of the loan is drawn, reaching the full instalment after the TOP and CSC tranches.
Can I use CPF for progressive payments?
Yes. After the 5% cash booking fee, CPF Ordinary Account savings can be applied toward the downpayment, stage payments, and stamp duties, subject to CPF Board rules including the Valuation Limit and, for older properties, lease-coverage requirements (CPF usage is subject to lease coverage rules — the property’s remaining lease must cover the youngest buyer to age 95 for full CPF usage). CPF is typically applied after cash and before loan disbursements at each stage.
What happens between TOP and CSC?
At TOP the buyer pays the 25% tranche, collects keys, and can begin fitting out or renting the unit. The final 15% is paid at legal completion upon the Certificate of Statutory Completion, which typically follows TOP by up to 12 months. Part of that final tranche functions as a retention against defects: the standard Sale & Purchase Agreement gives the buyer a 12-month defects liability period from notice of vacant possession, during which the developer must rectify notified defects.
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