By The Address desk · Last verified 7 October 2026
When you buy an uncompleted condo from a licensed developer in Singapore, you do not pay the full price on day one. Under the standard progressive payment scheme, you pay a 5% booking fee for the Option to Purchase, top up to 20% when you exercise it, then pay slices of 5% to 10% as the building rises, 25% at the Temporary Occupation Permit (TOP) and the final 15% at completion. Your bank loan is drawn down only as each stage falls due, so interest builds up gradually. A Deferred Payment Scheme (DPS) is different: where a developer offers one, you pay a deposit now and most of the balance later, usually for a higher price.
The schedule is set by law, not by the sales gallery, which is good news. Once you know the rhythm, you can plan your cash, CPF and loan with no surprises.
Quick facts
- Licensed developers must use the standard Option to Purchase and Sale and Purchase Agreement prescribed under the Housing Developers Rules; changes need the Controller of Housing’s approval.
- The booking fee under the normal scheme is 5% of the price, paid when the Option to Purchase is issued.
- The option expires three weeks after the Sale and Purchase Agreement and title documents are delivered to you or your lawyer.
- If you let the option lapse, the developer may keep 25% of the booking fee and refund the rest.
- Each later instalment is normally due within 14 days of notice that a construction stage is done; late payment carries interest.
- From 8 May 2026, new Executive Condominium sites no longer come with a Deferred Payment Scheme option.
The progressive payment schedule, stage by stage
The table shows the normal payment scheme in the standard Sale and Purchase Agreement for an uncompleted home. The percentages are of the purchase price and add up to 100%.
| Stage | Share of price | Running total |
|---|---|---|
| Option to Purchase issued (booking fee) | 5% | 5% |
| Option exercised and S&P signed (balance of down payment) | 15% | 20% |
| Foundation work completed | 10% | 30% |
| Reinforced concrete framework completed | 10% | 40% |
| Partition walls completed | 5% | 45% |
| Roofing or ceiling completed | 5% | 50% |
| Door and window frames, electrical wiring, plastering and plumbing completed | 5% | 55% |
| Car park, roads and drains completed | 5% | 60% |
| Temporary Occupation Permit (TOP) issued | 25% | 85% |
| Completion (after the Certificate of Statutory Completion) | 15% | 100% |
Two practical notes. First, construction stages can come months apart, and TOP for a new launch is often several years after booking, so the big 25% and 15% cheques arrive late. Second, stamp duty does not wait: Buyer’s Stamp Duty, and any Additional Buyer’s Stamp Duty, is due to IRAS within 14 days of signing the agreement, on the full price.
Who pays what: cash, CPF and the bank
Your own money goes in first and the bank comes in last. With a first housing loan at the maximum 75% loan-to-value limit, you fund the first 25% yourself, at least 5% of it in cash. The booking fee is paid in cash; the 15% balance at signing can generally come from cash or your CPF Ordinary Account, subject to CPF’s usage limits. The loan is then released stage by stage, and you pay interest only on what has been disbursed.
Worked example: a $1.5 million new launch
- Booking (5%): $75,000 in cash for the Option to Purchase.
- Signing (15%): $225,000 from cash or CPF. You have now paid $300,000, or 20%.
- Foundation (10%, $150,000): the first $75,000 completes your own 25% share ($375,000 in all); the bank pays the other $75,000.
- Every later stage: paid by the bank from the $1,125,000 loan (75% of $1.5 million), released as each stage is certified.
- Your instalments start after the first disbursement and grow as more of the loan is drawn.
If you have an existing loan, or a longer loan tenure, the limit falls and your own share rises. Run the numbers with your bank before you book, not after.
What is the Deferred Payment Scheme?
A Deferred Payment Scheme is an alternative some developers offer, usually on projects that are completed or close to it. You pay a deposit up front, often around 20%, and the balance later, often a year or more down the road. It suits upgraders who want to sell their current home first, or buyers who need time to arrange finance.
| Point | Normal progressive scheme | Deferred Payment Scheme |
|---|---|---|
| When it applies | Standard for uncompleted homes from licensed developers | Offered at the developer’s discretion, mostly on completed or near-complete projects |
| Up-front payment | 20% at signing | A deposit set by the developer, often about 20% |
| The balance | Paid stage by stage as construction progresses | Paid in one or more large sums at a later agreed date |
| Price | The listed price | Usually higher than the normal-scheme price for the same unit |
| Main risk | Loan instalments start during construction | A large sum falls due later; your income, loan limits or home sale may change by then |
For Executive Condominiums, the Government announced on 8 May 2026 that the DPS would be removed for EC land parcels whose tenders close on or after that date, alongside a 10-year Minimum Occupation Period for those projects. ECs launched from earlier sites may still carry the old terms, so check the sales brochure for the specific project.
What to check before you book
- Get an in-principle loan approval so you know your real limit before paying 5% you might lose a quarter of.
- Ask for the expected TOP and completion dates in the S&P, and plan for the 25% and 15% stages.
- If a DPS is offered, ask for the normal-scheme price too and compare the difference against what you save by waiting.
- Budget stamp duty separately; it is due within 14 days of signing, not at TOP.
- Keep a buffer for legal fees, valuation and furnishing, which the loan does not cover.
The WahLiao Verdict
The progressive scheme is the sensible default for most buyers: the rules are standard, your cash goes in early, and the loan builds up gently while the condo goes up. Treat a Deferred Payment Scheme as a paid service, not a discount. It earns its premium only if you need the time, for example to sell your current home first, and you are confident you can pay the large balance when it falls due. Ask for both prices, write down every date, and you will sleep well right through to key collection.
Questions people ask
Can I get my booking fee back if I change my mind?
Partly. If you do not exercise the option before it expires, the developer may keep 25% of the booking fee and refunds the other 75%. On a $1.5 million unit, that is $18,750 lost.
When do my loan repayments start?
Once the bank makes its first disbursement, usually at one of the early construction stages. The instalment is small at first and rises as more of the loan is released.
Can a developer change the payment schedule?
Not on its own. The S&P is a prescribed standard form, and amendments need the prior approval of the Controller of Housing at URA.
Is a Deferred Payment Scheme cheaper overall?
Usually not. The DPS price is typically higher than the normal-scheme price. Whether that is worth it depends on what the extra time saves you, such as avoiding a bridging loan or a rushed sale.
Sources: Urban Redevelopment Authority, buying a private home from a developer; URA Controller of Housing, option validity and booking fee forfeiture; URA, standard Option to Purchase and S&P; EdgeProp, new sale payment schedule and May 2026 EC changes. The Address explains; it does not advise.
Read next: HDB Loan or Bank Loan: LTV, MSR and TDSR Explained · Buyer’s Stamp Duty and ABSD: What You Pay When You Buy Property in Singapore · Back to The Address
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