Unlike a resale property — where the full purchase price is paid at completion — new launch payments follow a Progressive Payment Scheme (PPS) tied to construction milestones.
How The Progressive Payment Scheme Works
On booking day: 5% of the purchase price in cash. Within 8 weeks: a further 20% (of which 15% can be paid using CPF or the bank loan). These two tranches totalling 25% constitute the downpayment. Subsequent tranches are released as construction milestones are certified: foundation completion (10%), reinforced concrete framework (10%), brick walls (5%), ceiling (5%), electrical work (5%), and so on. The final 15% is payable on the issuance of the Temporary Occupation Permit (TOP).
Why This Matters For Planning
The progressive payment structure significantly reduces the immediate cash outflow compared to a resale purchase. Your bank loan begins disbursing progressively — monthly repayments start small and increase as more of the loan is drawn down. Your full mortgage repayment commitment only kicks in at TOP — giving you time to wind down rental commitments and adjust your monthly budget before full repayment begins.