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Progressive Payment Scheme


What is Progressive Payment Scheme?

Purchasing a new launch property in Singapore involves a progressive payment scheme, where buyers make payments at different stages of the construction process. This payment structure ensures that the developer receives the necessary funds to complete the project while providing buyers with a manageable payment plan. In this guide, we will explore the details of progressive payment and the timeline associated with purchasing a new launch property.

Progressive Payment & Timeline Table

Here is an overview of the progressive payment scheme:

Progress Payment Schedule
Initial Payment
Stage & Payable Fees (%) Timeline Mode of Payment
Booking of Unit: Option to Purchase (5%) Day 1 Cash Only
Engage a Solicitor
& Mortgage Banker
Delivery of Sale & Purchase Agreement
Next 2 Weeks Cash / CPF
Exercise Sale & Purchase (15%) Within 3 Weeks Cash / CPF
BSD / ABSD Within 14 Days Cash / CPF
Legal Fees: $2500 ~ $4000 Cash / CPF
Progressive Payment Based On Construction Stage
Stage 1: Foundation (10%) Est. 6 ~ 9 months from launch Cash / CPF / Loan
Stage 2: Unit Concrete Framework (10%) Est. 6 ~ 9 months Cash / CPF / Loan
Stage 3: Brick Walls (5%) Est. 3 ~ 6 months Cash / CPF / Loan
Stage 4: Ceiling/Roofing (5%) Est. 3 ~ 6 months Cash / CPF / Loan
Stage 5: Door/Window/Plumbing/Wiring (5%) Est. 3 ~ 6 months Cash / CPF / Loan
Stage 6: Carparks/Roads/Drains (5%) Est. 3 ~ 6 months Cash / CPF / Loan
Stage 7: TOP (25%) Next 1 year Cash / CPF / Loan
Stage 8: Cert. of Completion (15%) Up to 27 years or
your Loan Tenure
Cash / CPF / Loan

See also: Progressive Payment Calculator, Buyer’s Stamp Duty, Additional Buyer’s Stamp Duty, Stamp Duty Calculator

Understanding Progressive Payment for New Launch Properties

Progressive payment consists of two main components: the initial payment and the progressive payment based on construction stages.

Initial Payment

The initial payment includes the booking of the unit, often known as the Option to Purchase (OTP). This payment typically amounts to 5% of the property’s purchase price and is payable in cash only. After the initial booking, buyers engage a solicitor and a mortgage banker, which can be paid using cash or CPF funds. You may have a quick access an indicative loan amount using our financial tool, Affordability Calculator or engage a mortgage banker for a more through assessment or with In-Principle Approval (IPA).

Progressive Payment Based on Construction Stages

The progressive payment structure is designed to align with the construction progress of the property. The payment percentages and corresponding stages are as follows:

Stage 1: Foundation (10%)
Stage 2: Unit Concrete Framework (10%)
Stage 3: Brick Walls (5%)
Stage 4: Ceiling/Roofing (5%)
Stage 5: Door/Window/Plumbing/Wiring (5%)
Stage 6: Carparks/Roads/Drains (5%)
Stage 7: TOP (Temporary Occupation Permit) (25%)
Stage 8: Certificate of Completion (15%)

The developer may request the next payment based on the construction progress, taking into account factors such as construction speed and stages. However, delays can occur due to various reasons such as adverse weather conditions, material shortages, a high-risk dengue environment, or a shortage of manpower. A recent example of such a delay is the Covid-19 lockdown, which resulted in the temporary suspension of construction activities.

Timeline of New Launch Property Payments

Understanding the timeline of payments is crucial for buyers to plan their finances effectively.

  • Initial Payment Timeline
    The initial payment is typically made within the first few weeks of purchasing a new launch property. The booking of the unit, or Option to Purchase, is made on Day 1, and the engagement of a solicitor and mortgage banker occurs within the next two weeks.
  • Progressive Payment Timeline
    The progressive payment timeline is estimated based on the construction stages of the property. The duration for each stage can vary, but typically ranges from 3 to 9 months. The last two stages, TOP and Certificate of Completion, have longer timelines, with the latter potentially extending up to 27 years or the loan tenure.

Modes of Payment

Buyers have different options for making payments at each stage of the progressive payment schedule.

  • Cash
    Cash payments involve using personal funds for the payment. It is a common mode of payment for the initial payment and can also be used throughout the progressive payment stages.
  • CPF (Central Provident Fund)
    CPF funds, a social security savings scheme in Singapore, can be utilized for certain payments. However, there are restrictions on the use of CPF funds, such as limitations on the payment of land-related costs. CPF can be used for both the initial payment and progressive payment stages, subject to CPF Board guidelines.
  • Bank Loan
    Buyers can also make payments using a loan from a financial institution. Loans are often used in conjunction with cash or CPF funds to fulfill the payment requirements. Loan options should be explored with banks or mortgage bankers.


When purchasing a property, it is crucial to understand the sequence of payment modes and avoid mixing or jumping between different modes. Home buyers should be aware that the recommended sequence of payment is Cash > CPF > Bank Loan. Therefore, it is essential for home buyers to thoroughly plan their finances, considering factors such as whether to utilize more cash or CPF funds, before committing to a purchase. By carefully strategizing their financial resources, buyers can ensure a smooth and well-organized payment process throughout the property acquisition journey.

This comprehensive guide provides an overview of progressive payment and the timeline associated with purchasing a new launch property in Singapore. It is crucial for buyers to understand these details to plan their finances effectively and ensure a smooth transaction. Always consult with the developer, financial institutions, and legal professionals for accurate and up-to-date information regarding specific properties and payment arrangements.

Frequently Asked Questions (FAQs)

Progressive payment works by dividing the total purchase price into multiple stages based on the construction progress. As each stage is completed, buyers make payments according to the agreed-upon percentages.

A: Yes, you can use your CPF funds for progressive payment, subject to certain limitations and guidelines set by the CPF Board. CPF funds can be utilized for specific components of the payment, such as the down payment and subsequent stages of the progressive payment schedule.

However, it’s important to note that there are restrictions on the use of CPF funds for land-related costs. These costs may include the Buyer’s Stamp Duty (BSD), Additional Buyer’s Stamp Duty (ABSD), and legal fees. Therefore, it is advisable to allocate sufficient cash reserves for these expenses.

Furthermore, CPF members are required to set aside the Full Retirement Sum (FRS) in their CPF accounts, as mandated by the CPF Board. The FRS is intended to provide for retirement needs, and it is important to ensure that adequate CPF funds are retained for this purpose. It’s advisable to check with the CPF Board and seek professional advice to understand the specific limitations and guidelines regarding the usage of CPF funds for progressive payment.

By understanding the CPF rules and limitations, you can effectively plan your financing strategy and determine the most suitable allocation of funds, whether it’s utilizing CPF, cash, or a combination of both, for the progressive payment of your property.

It is important to communicate with the developer or relevant parties if you anticipate difficulties in making a payment. They may provide options or assistance to help you manage the situation.

The payment schedule is generally predetermined and based on the construction progress. However, in certain cases, developers may consider requests for slight adjustments to accommodate buyers’ needs.

If the project experiences delays, the payment schedule may be adjusted accordingly. The developer should provide updates and revised timelines to ensure transparency and alignment with the payment structure.

While it is possible to make early payments, it is essential to check with the developer and understand any penalties or administrative processes involved in settling the outstanding amount before the stipulated timeline.

After the Certificate of Completion stage, the property is considered ready for occupancy. At this point, buyers may proceed with the legal processes for handover and ownership transfer, including the signing of relevant documents and settling any outstanding payments.

Disclaimer: The information provided on this website is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. We strongly recommend that you verify all the information with the direct official sources before any sale, rent and purchase of any property. Any reliance you place on such information is therefore strictly at your own risk. We do not assume any responsibility or liability for any errors or omissions in the content of this website or for any action taken by users based on information provided on this website.

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