Standard BUC progressive payment schedule.
Payment by stage
Why a new launch costs you slowly, not all at once
When you buy a completed home, you find the full down payment and the bank disburses the whole loan on completion. A property bought directly from a developer while it is still being built works differently. You pay in tranches that track construction milestones, and the bank draws down your loan to match each tranche. This is the Progressive Payment Scheme, and it is the standard arrangement for a Building Under Construction private property in Singapore. The practical upshot is gentler: in the early years you are only servicing interest on the small slice of the loan that has actually been released, not the full amount.
This tool lays out the standard schedule against your purchase price so you can see exactly what falls due at each stage. It assumes the typical building-under-construction structure. An already-completed resale property does not use this schedule at all, and an executive condominium or HDB flat follows its own payment rules.
The schedule on a $1.5 million unit
Take a $1.5 million purchase. The booking fee is 5 percent, you pay another 15 percent when you sign the Sale and Purchase Agreement within roughly eight weeks, and from there the payments arrive as the developer’s architect certifies each stage of construction.
| Stage | Share | Amount |
|---|---|---|
| Booking (option fee) | 5% | $75,000 |
| Signing the S and P agreement | 15% | $225,000 |
| Foundation work | 10% | $150,000 |
| Reinforced concrete framework | 10% | $150,000 |
| Four construction stages | 20% | $300,000 |
| Temporary Occupation Permit | 25% | $375,000 |
| Certificate of Statutory Completion | 15% | $225,000 |
The single largest payment is the 25 percent due at Temporary Occupation Permit, the point at which you can actually collect the keys and move in. The chart traces the cumulative percentage of the price paid as the build progresses from booking through to legal completion.
What the schedule does to your monthly repayment
The schedule is not just a payment calendar, it shapes your cashflow for years. Because the bank only releases loan funds as each stage is reached, your monthly instalment ramps up in step with disbursement rather than landing fully formed on day one. In the first year or two, when perhaps 20 to 40 percent of the price has been drawn, your repayment can be a fraction of the eventual figure. By the time the unit hits Temporary Occupation Permit and roughly 80 percent has been released, you are close to the full monthly commitment. Buyers who budget off the final instalment from the start often find the early years far more comfortable than expected, which is useful breathing room if you are still paying rent elsewhere while you wait for the keys.
A word of caution that catches first-time new-launch buyers. Your stamp duties are not in this schedule and they do not wait for construction. Buyer’s Stamp Duty, and Additional Buyer’s Stamp Duty if it applies to your profile, both fall due shortly after you sign, on top of the 20 percent you have paid by then. Set that cash aside before you commit, because it is a large bill arriving early.
Is the percentage at each stage the same for every project?
The framework is standardised, but the exact split across the middle construction stages can vary slightly between developments depending on how the architect groups the works. The headline figures are reliable: 5 percent at booking, 15 percent at signing, 25 percent at Temporary Occupation Permit, and 15 percent at the Certificate of Statutory Completion. The 35 percent in between is released across the structural and finishing stages. Always check the precise schedule in your own Sale and Purchase Agreement.
Can I use CPF for the progressive payments?
Yes, your CPF Ordinary Account savings can be applied to the down payment portions and to servicing the loan as it is drawn down, subject to the usual CPF housing withdrawal rules and valuation limits. Many buyers use cash for the initial booking fee and bring CPF in for later stages. The interplay with the loan-to-value limit and your bank’s disbursement timing is worth mapping out with your conveyancing lawyer before the first payment.