Progressive Payment Scheme Explained: How You Pay for a New Launch Condo
Under Singapore’s progressive payment scheme you pay 5% at booking and the rest in stages as the building goes up. Full schedule, worked examples at S$1.7m and S$2.67m, cash vs CPF, and when stamp duty is due.
Buying a new launch (an uncompleted private property) in Singapore works differently from buying a resale home. Instead of paying the full price on completion, you pay in stages as the building goes up. This is the progressive payment scheme. It shapes how much cash you need, when your loan kicks in and how much interest you pay in the early years.
This guide sets out the full schedule, then works through two examples at price points relevant to LinkTown Residences (Hougang Central Residences): about S$1.7m for a 2-bedroom and about S$2.67m for a 3-bedroom.
The standard progressive payment scheme schedule
| Stage | % of price | Cumulative |
|---|---|---|
| Option to Purchase (booking fee) | 5% | 5% |
| Sale & Purchase Agreement signed (within ~8 weeks) | 15% | 20% |
| Foundation completed | 10% | 30% |
| Reinforced concrete framework | 10% | 40% |
| Partition walls | 5% | 45% |
| Roofing / ceiling | 5% | 50% |
| Door and window frames, electrical wiring, plumbing | 5% | 55% |
| Car park, roads and drains | 5% | 60% |
| Temporary Occupation Permit (TOP) | 25% | 85% |
| Certificate of Statutory Completion (CSC) | 15% | 100% |
The developer issues a notice as each stage is certified, and you generally have a set period to pay. The construction stages do not come at fixed intervals. Foundation work can take many months, while later stages may come closer together. The two big payments, 25% at TOP and 15% at CSC, come at the end.
Who pays what: you or the bank
Most buyers finance with a bank loan. For a first housing loan, the maximum loan-to-value (LTV) is generally 75% (tenure up to 30 years for private property), which means you fund the first 25% yourself:
- 5% at booking: must be cash. This is the minimum cash portion for a first loan at 75% LTV.
- 15% at the S&P Agreement: cash and/or CPF Ordinary Account.
- The first 5% of the foundation stage: cash and/or CPF.
From the second half of the foundation instalment onwards, the bank pays the developer directly, stage by stage. If you already have an outstanding housing loan, the LTV limit drops to 45% or 35%, and your cash and CPF share rises sharply.
Worked example 1: 2-bedroom at S$1.7m
Based on an indicative 678 sq ft 2-bedroom at about S$2,500 psf. Loan at 75% = S$1,275,000. Your share = S$425,000.
| Stage | % | Amount | Paid by | Loan drawn so far |
|---|---|---|---|---|
| Option to Purchase | 5% | S$85,000 | You (cash) | S$0 |
| S&P Agreement | 15% | S$255,000 | You (cash/CPF) | S$0 |
| Foundation | 10% | S$170,000 | You S$85,000 + bank S$85,000 | S$85,000 |
| RC framework | 10% | S$170,000 | Bank | S$255,000 |
| Partition walls | 5% | S$85,000 | Bank | S$340,000 |
| Roofing / ceiling | 5% | S$85,000 | Bank | S$425,000 |
| Doors, windows, wiring, plumbing | 5% | S$85,000 | Bank | S$510,000 |
| Car park, roads, drains | 5% | S$85,000 | Bank | S$595,000 |
| TOP | 25% | S$425,000 | Bank | S$1,020,000 |
| CSC | 15% | S$255,000 | Bank | S$1,275,000 |
| Total | 100% | S$1,700,000 |
Separately: Buyer’s Stamp Duty of S$54,600, due around the S&P stage.
Worked example 2: 3-bedroom at S$2.67m
Based on an indicative 1,066 sq ft 3-bedroom at about S$2,500 psf. Loan at 75% = S$2,002,500. Your share = S$667,500.
| Stage | % | Amount | Paid by | Loan drawn so far |
|---|---|---|---|---|
| Option to Purchase | 5% | S$133,500 | You (cash) | S$0 |
| S&P Agreement | 15% | S$400,500 | You (cash/CPF) | S$0 |
| Foundation | 10% | S$267,000 | You S$133,500 + bank S$133,500 | S$133,500 |
| RC framework | 10% | S$267,000 | Bank | S$400,500 |
| Partition walls | 5% | S$133,500 | Bank | S$534,000 |
| Roofing / ceiling | 5% | S$133,500 | Bank | S$667,500 |
| Doors, windows, wiring, plumbing | 5% | S$133,500 | Bank | S$801,000 |
| Car park, roads, drains | 5% | S$133,500 | Bank | S$934,500 |
| TOP | 25% | S$667,500 | Bank | S$1,602,000 |
| CSC | 15% | S$400,500 | Bank | S$2,002,500 |
| Total | 100% | S$2,670,000 |
Separately: Buyer’s Stamp Duty of S$103,100, due around the S&P stage.
Prices are illustrations based on indicative sizes from the developers’ Parktown Residence and an analyst-estimated S$2,500 psf. They are not official LinkTown Residences prices.
Cash vs CPF: planning the upfront sum
The first eight weeks are the heaviest for your own funds. In the 2-bedroom example, you need S$85,000 in cash at booking, then S$255,000 plus S$54,600 of BSD at the S&P stage. That is S$394,600 within about two months, before the bank pays anything.
CPF can cover a large part of the 15%, but CPF withdrawals need processing time and are subject to limits linked to the property’s value and your age and remaining lease. Many buyers keep enough cash on hand to cover the S&P payment in case CPF funds are not released in time. Your conveyancing lawyer will coordinate this, so ask early how they handle CPF timing and whether CPF can be applied to the stamp duty.
How staged drawdown affects interest
Because the loan is disbursed in stages, you pay interest only on what has been drawn. To show the effect, assume an illustrative interest rate of 3% a year. This is an assumption for the example only, not a quote. Actual rates depend on the market and your bank.
- After the foundation stage (S$85,000 drawn in the 2-bedroom example), the monthly interest is roughly S$212.50.
- After the car park stage (S$595,000 drawn), roughly S$1,487.50 a month.
- After CSC (full S$1,275,000 drawn), roughly S$3,187.50 a month in interest alone, before principal repayment.
For the 3-bedroom, the equivalent interest figures are about S$333.75, S$2,336.25 and S$5,006.25 a month. Your actual monthly instalment will include principal as well. Test your own numbers in the progressive payment calculator and the loan calculator.
Remember that banks assess affordability up front using the 55% TDSR at a 4% stress-test rate on the full loan, not the lower early instalments.
Stamp duty timing
Stamp duty is not part of the progressive schedule. Buyer’s Stamp Duty is generally payable within 14 days of signing the S&P Agreement or exercising the option. BSD rates are tiered: 1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000, 4% on the next S$500,000, 5% on the next S$1.5m and 6% on the rest.
ABSD, if it applies, is due at the same time and can be very large. For a Singapore Citizen buying a second home, ABSD at 20% would be S$340,000 on S$1.7m or S$534,000 on S$2.67m. Married couples with at least one Singapore Citizen who are buying a second home may get a refund if they sell their first home within IRAS’s time limit (for an uncompleted purchase, generally within six months after TOP or CSC, whichever is earlier). You still pay upfront and claim the refund later. See our BSD and ABSD guide and the stamp duty calculator.
Why the scheme helps HDB upgraders
The progressive schedule gives upgraders time. Most of the price is due only at TOP and CSC, years after booking. That can let you keep living in your flat through construction and plan the sale around the ABSD refund window. It still requires careful planning of cash, CPF, the ABSD outlay and HDB rules such as your minimum occupation period. Our HDB upgrader guide covers the sequence step by step.
Other costs to budget for
- Legal (conveyancing) fees and valuation fees.
- Fire insurance required by the bank, and home insurance.
- Renovation and furnishing after TOP, plus maintenance fees once you collect the keys.
When LinkTown Residences launches, the developer’s actual payment terms will be in the Option to Purchase. To receive the price list and terms first, register your interest below.
This guide is general information, not financial advice. Rules and rates change, so check IRAS, MAS, CPF Board and your banker before committing.
