Buying a new launch condominium in Singapore means signing before a single brick is laid. Instead of handing over the full purchase price at one go, you pay in stages as the building rises — a system known as the Progressive Payment Scheme (PPS). Every payment is tied to a specific construction milestone certified by the developer's architect, so your cash outflow is spread across three to five years from booking to Temporary Occupation Permit (TOP). Understanding exactly when each instalment falls due, how much it costs, and how your bank loan interacts with each stage is essential before you exercise the Option to Purchase.
This guide covers the standard 2026 PPS milestone schedule, a full worked example on a S$1.2 million new launch, how interest accumulates only on the portion of your loan that has been drawn down, a head-to-head comparison with the Deferred Payment Scheme, and practical tips for managing cash flow over the construction period. For the complete upfront cost picture — including stamp duties and legal fees — see our Complete Condo Purchase Cost Breakdown.
Overview: How the Progressive Payment Scheme Works
The Progressive Payment Scheme is the standard and default payment structure for all new launch private condominiums sold under a Sale and Purchase Agreement (S&P) in Singapore. It is governed by the Housing Developers Rules and the standard S&P Agreement prescribed by the Controller of Housing. Developers cannot unilaterally modify the milestone schedule — every buyer of a new launch unit in 2026 follows the same payment structure unless they specifically opt for a Deferred Payment Scheme at a price premium (discussed below).
Under PPS, payment is divided into a booking fee paid immediately, then a series of instalments linked to construction progress. Each instalment becomes payable within 14 days of the developer's architect certifying that the relevant stage of construction is complete. The certificate is issued to both the developer and the buyer's conveyancing lawyer; your lawyer will notify you when each payment falls due.
The key financial benefit of PPS is that your bank loan is also drawn down progressively — the bank disburses funds only as each milestone is certified. This means you are paying interest only on the amount actually disbursed, not on the full approved loan quantum. In the early stages of a project, when only the booking fee and one or two instalments have been paid, your monthly interest liability is a fraction of what it will be at TOP. This built-in cash flow relief is one of the most underappreciated advantages of buying new launch over resale.
Standard PPS Milestones and Payment Percentages
The milestone schedule prescribed under the Housing Developers Rules divides the purchase price into the following stages. The percentages below apply to the purchase price (not valuation), and each is payable within 14 days of the architect's certification:
| Stage | Milestone | % of Purchase Price | Cumulative % Paid |
|---|---|---|---|
| 1 | Booking fee (upon exercise of OTP) | 5% | 5% |
| 2 | Signing of S&P Agreement (within 8 weeks of booking) | 15% | 20% |
| 3 | Foundation works complete | 10% | 30% |
| 4 | Reinforced concrete framework complete | 10% | 40% |
| 5 | Partition walls complete | 5% | 45% |
| 6 | Roofing / ceiling complete | 5% | 50% |
| 7 | Doors, windows, electrical wiring, and plumbing complete | 5% | 55% |
| 8 | Car park, roads, and drains complete | 5% | 60% |
| 9 | Temporary Occupation Permit (TOP) issued | 25% | 85% |
| 10 | Certificate of Statutory Completion (CSC) issued | 15% | 100% |
A few points deserve emphasis. First, the 5% booking fee is paid in cash — it cannot come from CPF or the bank loan, and it is paid when you exercise the Option to Purchase, before any S&P Agreement is signed. Second, the Stage 2 payment of 15% (bringing the running total to 20%) is due at S&P signing and typically includes the IRAS BSD ratesBuyer's Stamp Duty (BSD), which your conveyancing lawyer will arrange from CPF OA or cash at this point. Third, Stages 3 through 8 (the six construction milestones) collectively account for only 40% of the price but are spread over the longest period — typically 2 to 3 years — giving buyers the most breathing room. The largest single payment after the booking sequence is the 25% at TOP, which is when the bulk of the bank loan is disbursed and your mortgage monthly repayments begin in earnest.
Cash Flow Timeline: What You Actually Pay Each Year
The progressive structure means your cash outflow is heavily front-loaded in the first few months (booking + S&P), then relatively modest during construction, before spiking at TOP and again at CSC. A typical cash flow timeline across a 4-year project looks like this:
| Approximate Period | Milestone(s) | Cumulative % Due | Cash Flow Character |
|---|---|---|---|
| Month 0 – 2 | Booking + S&P signing | 20% | High — initial downpayment phase |
| Year 1 – 2 | Foundation + RC framework | 40% | Moderate — two 10% tranches, months apart |
| Year 2 – 3 | Partitions + roofing + doors/windows + car park | 60% | Lower — four 5% tranches spread over ~12 months |
| Year 3 – 4 | TOP | 85% | High — largest single tranche, loan draw peaks |
| Year 4 – 5 | CSC | 100% | Moderate — final settlement, loan fully drawn |
The gap between Stages 3–8 milestones is typically 4–8 months each. This spacing gives buyers substantial time between payments to accumulate savings, allow CPF OA to rebuild from monthly contributions, or redeploy funds from other investments. By contrast, a resale purchase requires the full 25% downpayment in a single lump sum on completion day — with no comparable breathing room.
Progressive Payment Scheme vs Deferred Payment Scheme
Some developers — typically for high-end or slower-selling projects — offer a Deferred Payment Scheme (DPS) as an alternative. Under DPS, the buyer pays a larger upfront sum (typically 20% at signing) and then defers the remaining 80% to TOP, when the full loan is drawn in one disbursement. DPS was banned during the 2008–2012 period and re-emerged on a selective basis. In 2026 it remains available on select projects but is far less common than PPS.
| Feature | Progressive Payment Scheme (PPS) | Deferred Payment Scheme (DPS) |
|---|---|---|
| Upfront payment | 5% booking + 15% at S&P = 20% total | Typically 20% at S&P signing |
| Payment during construction | 40% in staged tranches | None — entire balance deferred |
| Balance due at TOP | 25% (plus 15% at CSC) | 80% in one payment |
| Loan drawn progressively | Yes — interest on disbursed amount only | No — full loan drawn at TOP |
| Interest during construction | Low and rising — only on disbursed tranches | Zero until TOP |
| Typical price premium | None — standard scheme | 2% to 3% above standard price |
| Cash flow advantage | Staged outflows; loan interest low early on | Zero cash outflow during construction |
| Risk | Interest creep as more tranches are drawn | Large lump sum required at TOP; full loan from day one |
| Best suited for | Most buyers; CPF users; income-earning buyers | Cash-rich buyers; those with large illiquid holdings to monetise before TOP |
The 2–3% DPS price premium is the critical consideration. On a S$1.2 million unit, a 2.5% premium is S$30,000 — a significant amount that you are effectively paying to delay cash outflows during construction. For most salaried buyers in Singapore, PPS is the superior choice: monthly CPF contributions build up the OA balance steadily during construction, effectively pre-funding each milestone payment. Only buyers who have identified that they will have a large liquidity event (property sale, business exit, significant inheritance) before TOP should seriously evaluate DPS at a premium.
Worked Example: S$1.2M New Launch, First-Time SC Buyer
Meet Jing Wei, a 31-year-old Singapore Citizen buying her first private condominium — a new launch unit at S$1,200,000. She has S$180,000 in her CPF OA and S$80,000 in cash savings. She earns S$9,000/month gross, contributing approximately S$1,702/month to her OA from payroll (at the OW ceiling). The bank has approved a 75% LTV loan of S$900,000. Stamp duties: BSD on S$1.2M = S$32,600 (first SC purchase; 0% ABSD). She opts for the standard PPS.
| Stage | Milestone | % Due | S$ Amount | Source | Running CPF Used | Running Loan Drawn |
|---|---|---|---|---|---|---|
| 1 | Booking fee | 5% | S$60,000 | Cash (mandatory) | — | — |
| 2 | S&P signing + BSD | 15% + BSD | S$180,000 + S$32,600 | CPF OA: S$180,000; Cash (BSD): S$32,600 | S$180,000 | — |
| 3 | Foundation complete (~12 months) | 10% | S$120,000 | Loan drawdown | S$180,000 | S$120,000 |
| 4 | RC framework complete (~20 months) | 10% | S$120,000 | Loan drawdown | S$180,000 | S$240,000 |
| 5 | Partition walls (~26 months) | 5% | S$60,000 | Loan drawdown | S$180,000 | S$300,000 |
| 6 | Roofing / ceiling (~30 months) | 5% | S$60,000 | Loan drawdown | S$180,000 | S$360,000 |
| 7 | Doors, windows, electrical (~34 months) | 5% | S$60,000 | Loan drawdown | S$180,000 | S$420,000 |
| 8 | Car park, roads, drains (~38 months) | 5% | S$60,000 | Loan drawdown | S$180,000 | S$480,000 |
| 9 | TOP (~42 months) | 25% | S$300,000 | Loan drawdown: S$300,000 | S$180,000 | S$780,000 |
| 10 | CSC (~54 months) | 15% | S$180,000 | Loan drawdown: S$120,000; CPF OA: S$60,000* | S$240,000 | S$900,000 |
*By CSC (month 54), Jing Wei's OA has been rebuilt through payroll contributions: 54 months × S$1,702 = approximately S$91,900 of new contributions, minus any partial mortgage top-ups she made from CPF during construction. She applies S$60,000 of her rebuilt OA to the CSC payment. The remaining S$120,000 of the CSC instalment is covered by the final loan drawdown, bringing the total loan to the approved S$900,000.
Cash Outflow Summary
| Item | Amount | Source |
|---|---|---|
| Booking fee (Stage 1) | S$60,000 | Cash |
| BSD (at S&P signing) | S$32,600 | Cash (or CPF OA — Jing Wei pays cash to preserve OA) |
| S&P downpayment (Stage 2 — 15%) | S$180,000 | CPF OA |
| Stages 3–8 (construction milestones) | S$360,000 | Bank loan drawdowns |
| TOP (Stage 9 — 25%) | S$300,000 | Bank loan drawdown |
| CSC (Stage 10 — 15%) | S$180,000 | S$120,000 loan + S$60,000 CPF OA (rebuilt) |
| Legal / conveyancing fees (est.) | S$3,500 | Cash |
| Total cash out-of-pocket | ~S$96,100 | Cash |
| Total CPF used | S$240,000 | CPF OA |
| Total bank loan drawn at CSC | S$900,000 | Bank |
Jing Wei's total cash outlay over the 4.5-year construction period is approximately S$96,100 — a modest sum relative to the S$1.2 million purchase price, spread across multiple years. The progressive structure allowed her initial S$80,000 cash savings to cover the booking fee and BSD comfortably, while CPF OA handled the S&P downpayment and eventually contributed to the CSC balance.
Interest During Construction: How Progressive Drawdown Saves You Money
For resale properties, the bank disburses the full approved loan on completion day. From that day forward, you pay interest on the entire loan balance. For a new launch under PPS, the bank disburses progressively — and you pay interest only on the amount actually drawn. This distinction is financially significant.
Continuing Jing Wei's example, assuming a 3.5% p.a. interest rate:
| Period | Loan Drawn (Cumulative) | Approx. Monthly Interest | Notes |
|---|---|---|---|
| Months 1–12 (foundation) | S$0 | S$0 | No loan drawn yet |
| Month 12–20 (after foundation cert) | S$120,000 | ~S$350/month | Only S$120K drawn |
| Month 20–26 (after RC framework) | S$240,000 | ~S$700/month | Two tranches drawn |
| Month 26–38 (partitions, roof, doors/windows) | S$300,000–S$420,000 | ~S$875–S$1,225/month | Progressive increase |
| Month 38–42 (car park to TOP) | S$480,000 | ~S$1,400/month | Pre-TOP phase |
| Post-TOP (full mortgage begins) | S$780,000–S$900,000 | ~S$2,275–S$2,625/month | Full repayment schedule starts |
Across the 42 months before TOP, Jing Wei pays cumulative interest of approximately S$25,000–S$30,000 — well below the S$105,000 she would have paid if the full S$900,000 had been drawn on day one at the same rate. This pre-TOP interest is typically paid monthly in cash (not from CPF), and is a cost that buyers should explicitly budget for. Banks may also offer a "capitalisation" option for pre-TOP interest on some products — where interest accrues and is added to the loan balance rather than being paid monthly — but this increases the total loan quantum and is generally discouraged for buyers with the cash flow to service interest payments directly.
Tips for Managing PPS Cash Flow
1. Reserve Cash Separately for Each Construction Milestone
After the booking and S&P payments, Stages 3–8 are funded by bank loan drawdowns — you typically do not need to write a personal cheque. However, the bank's disbursement goes directly to the developer; your lawyer manages the paperwork. Ensure you are not inadvertently counting on funds that are already earmarked for other purposes when a milestone certificate arrives.
2. Track Your CPF OA Rebuild Rate
From the moment of the S&P downpayment drawdown, your OA balance starts rebuilding from monthly payroll contributions. Know your monthly OA inflow (approximately 23% of wages up to the OW ceiling of S$7,400). Over 3–4 years of construction, a salaried buyer at the ceiling will accumulate S$60,000–S$80,000 in fresh OA contributions — material for the CSC payment or for commencing mortgage servicing from CPF post-TOP.
3. Budget for Pre-TOP Interest as a Cash Expense
Many first-time buyers are caught off guard by the monthly bank interest that begins when the first construction milestone loan drawdown is made. Budget S$350–S$1,500/month for pre-TOP interest depending on the project's construction pace, and treat it as a fixed cash cost alongside rental (if you are renting during construction).
4. Avoid Over-Committing CPF at S&P Signing
The S&P downpayment (15% at Stage 2) plus BSD is the largest single CPF withdrawal you will make during the construction period. Resist the temptation to also draw CPF for legal fees or other ancillary costs at this point — preserving OA balance keeps the accrued interest base lower and ensures you have a buffer for unexpected needs. Every dollar left in CPF earns a guaranteed 2.5% p.a.
5. Synchronise Your Housing Plans With the TOP Timeline
If you are currently renting, your rental lease expiry should ideally align with the expected TOP date. A 3-month buffer between TOP and lease end gives you time to complete the defect inspection process, renovate, and move in without double-paying rent and mortgage. Build the estimated TOP window into your tenancy renewal decisions from booking onwards. See our guide on Defect Liability Period Rights for what to do in the weeks after TOP.
6. Model DPS Against PPS Before Committing
If a developer offers DPS at a 2–3% premium, run the numbers. For a S$1.2M unit, 2.5% = S$30,000. That is the cost of deferring the construction-phase payments. Compare it to the pre-TOP interest you would otherwise pay under PPS (approximately S$25,000–S$30,000 in Jing Wei's example). The premium often exceeds the interest saving, particularly for buyers who have CPF and income to service pre-TOP interest comfortably. DPS only outperforms for buyers who genuinely cannot fund the construction-phase drawdowns from existing cash and CPF.
Frequently Asked Questions
What happens if a construction milestone is delayed?
If the developer fails to obtain the architect's certification for a milestone within the contractual timeframe, they are in breach of the S&P Agreement and liable to pay you late completion interest at 10% per annum on the amounts you have paid, for each day of delay. This is an important buyer protection baked into the standard S&P Agreement. Track the contractual milestone deadlines — they are listed explicitly in the agreement — and engage your lawyer immediately if a deadline is missed. Delays of several months are not uncommon on large projects; significant delays of over a year can warrant considering an outright rescission of the agreement under specific clauses.
Can I pay more than the required amount at any milestone to reduce my loan?
Yes. You can make partial prepayments toward your loan at any time, subject to your bank's lock-in period terms. Some fixed-rate packages impose prepayment penalties (typically 1.5% of the prepaid amount) during the lock-in period, which is usually 2 to 3 years. For floating-rate packages, prepayment is generally penalty-free after the lock-in. However, because the bank only disburses funds to the developer according to the certified milestone schedule, "paying ahead" of a milestone is not possible with the developer — it simply means reducing your loan balance at a milestone payment date. Check with your banker before making any prepayment decision.
When does the full mortgage repayment schedule begin?
Full principal-and-interest repayment begins after TOP, when the largest tranche of the loan (25% at TOP) is drawn. Before TOP, you are paying interest-only on the progressively disbursed tranches — there is no principal reduction during the construction phase. Once TOP is issued and the 25% instalment is disbursed, your bank converts the loan to a full amortising repayment schedule. Monthly instalments thereafter cover both principal and interest over the remaining loan tenure. The 15% at CSC is a further drawdown that increases the outstanding loan balance and slightly adjusts the monthly instalment amount.
Is the 5% booking fee refundable if I change my mind?
If you exercise the Option to Purchase and then choose not to sign the S&P Agreement within the option period (typically 3 weeks), the developer is entitled to forfeit 25% of the booking fee — meaning you lose 1.25% of the purchase price. If you sign the S&P Agreement and subsequently default or rescind, the forfeiture provisions are more significant (typically 20% of the purchase price). The 5% booking fee is not freely refundable after OTP exercise; treat it as a committed deposit. Only the abortive legal costs scenario prior to OTP exercise gives you full protection — once you sign the OTP, you are financially committed.
How does BSD fit into the PPS schedule?
BSD is due within 14 days of signing the S&P Agreement — effectively at Stage 2 of the PPS. For a S$1.2M new launch, BSD is S$32,600. It is paid to IRAS (not the developer), and can be sourced from your CPF OA or cash. Most buyers co-ordinate BSD payment through their conveyancing lawyer at the same time as the Stage 2 downpayment. If you have the cash, paying BSD in cash rather than CPF keeps your OA balance higher for later milestones and reduces your total CPF accrued interest liability. For the full BSD calculation, use our Stamp Duty Calculator.
What is the difference between TOP and CSC, and why does it matter for payments?
The Temporary Occupation Permit (TOP) is issued by the Building and Construction Authority (BCA) once the building has been inspected and found structurally safe for occupation. TOP allows you to take possession of and move into your unit. The Certificate of Statutory Completion (CSC) follows later — typically 6 to 18 months after TOP — once all outstanding works, landscaping, amenities, and administrative requirements are finalised and inspected. Under PPS, 25% of the purchase price is due at TOP and 15% at CSC. This means even after you move in at TOP, you still owe 15% of the purchase price — an important cash-flow consideration. The CSC payment does not affect your right to occupy the unit, but it must be settled in full to complete the legal title transfer.