Answer
Progressive Payment Schedule (PPS) — New Launch Condos
Buying a new launch? You don't pay the full price at once. Here's the exact cash flow timeline — what you pay, when you pay it, and how the bank loan draws down.
Answer: Under PPS, you pay 5% at booking, then 15% at S&P signing (total 20% down payment). The remaining 80% is paid progressively as the condo is built: 10% at foundation, 10% at RC framework, four 5% payments at construction milestones, 25% at TOP, and 15% at CSC. Your bank loan disburses in stages — you only pay interest on the amount drawn, starting at ~$200–$900/month and rising to the full mortgage of ~$5,600/month at TOP (on a $1.5M condo at 3.5%).
PPS Milestones — Percentage Breakdown
This schedule is mandated by Singapore's Housing Developers (Control and Licensing) Act. Every new launch developer must follow it.
| Milestone | % of Price | Cumulative | Typical Timeline |
|---|---|---|---|
| Booking fee (OTP exercise) | 5% | 5% | Day of booking |
| S&P Agreement | 15% | 20% | Within 8 weeks |
| Foundation completed | 10% | 30% | ~6–12 months |
| Reinforced concrete (RC) framework | 10% | 40% | ~12–18 months |
| Partition walls | 5% | 45% | ~18–24 months |
| Ceiling / roofing | 5% | 50% | ~20–26 months |
| Electrical wiring / plumbing | 5% | 55% | ~22–28 months |
| Car park, roads, drains | 5% | 60% | ~24–30 months |
| TOP (Temporary Occupation Permit) | 25% | 85% | ~30–42 months |
| CSC (Legal Completion) | 15% | 100% | ~42–48 months |
Timelines are typical estimates. Large or complex developments may take longer.
Cash Flow Timeline — $1.5M Condo Example
Here's what you actually pay out of pocket month by month. Assumes 75% LTV bank loan ($1,125,000), 5% cash + 20% CPF down payment, 3.5% interest.
| When | What You Pay | Amount | Source |
|---|---|---|---|
| Day 1 | Booking fee (5%) | $75,000 | Cash (cheque) |
| Week 8 | S&P signing (15%) | $225,000 | CPF OA |
| Week 8 | BSD stamp duty | $44,600 | Cash or CPF |
| Week 8 | Legal fees | $3,000–$5,000 | Cash |
| Month 6–12 | Foundation (10%) | $150,000 | CPF + bank loan |
| Monthly interest starts | ~$219/mo | Cash or CPF | |
| Month 12–18 | RC framework (10%) | $150,000 | Bank loan |
| Monthly interest grows | ~$656/mo | Cash or CPF | |
| Month 18–30 | 4 stages at 5% each | $75,000 each | Bank loan |
| Monthly interest climbs | $875–$1,531/mo | Cash or CPF | |
| Month 30–42 | TOP (25%) | $375,000 | Bank loan |
| Full mortgage begins | ~$5,630/mo | Cash + CPF | |
| Month 42–48 | CSC (15%) | $225,000 | Bank loan |
Interest-only amounts assume 3.5% p.a. on cumulative bank loan drawn. Full mortgage = principal + interest on $1,125,000 over 25 years at 3.5%.
Total Upfront Cash Needed
Before the bank loan kicks in, this is the minimum cash you need at different condo prices (SC first property, 75% LTV):
| Item | $1M Condo | $1.5M Condo | $2M Condo |
|---|---|---|---|
| 5% cash (booking) | $50,000 | $75,000 | $100,000 |
| BSD stamp duty | $24,600 | $44,600 | $69,600 |
| Legal fees | $3,000 | $4,000 | $5,000 |
| Minimum cash needed | $77,600 | $123,600 | $174,600 |
| CPF OA needed (20%) | $200,000 | $300,000 | $400,000 |
Excludes ABSD (0% for SC first property). PR first property adds 5% ABSD. SC second property adds 20% ABSD.
Total Interest During Construction
You pay interest-only during construction (typically 3–4 years). Here's the approximate total interest cost before your full mortgage kicks in:
| Condo Price | Loan (75% LTV) | Total Construction Interest* | Avg Monthly During Build |
|---|---|---|---|
| $1,000,000 | $750,000 | ~$35,000–$45,000 | ~$800–$1,100 |
| $1,500,000 | $1,125,000 | ~$52,000–$68,000 | ~$1,200–$1,700 |
| $2,000,000 | $1,500,000 | ~$70,000–$90,000 | ~$1,600–$2,200 |
*Assumes 3.5% p.a., 36–42 month construction period. Range depends on construction speed and drawdown timing.
Key Takeaways
- →Cash burden is front-loaded — the biggest cash outlay happens in the first 2 months (booking + S&P + stamp duty + legal)
- →Monthly costs start small — interest-only payments during construction are a fraction of the full mortgage
- →Full mortgage hits at TOP — plan your budget for the jump from ~$1,500/mo to ~$5,600/mo (on $1.5M)
- →Construction interest adds up — budget $35,000–$90,000 in total interest during the 3–4 year build
- →CPF OA is your friend — it covers most of the 20% down payment and can pay interest-only during construction
Run the numbers for your new launch
Calculate your exact monthly mortgage, stamp duty, and total cash needed.
FAQ
What's the progressive payment schedule for a new launch condo?
The progressive payment schedule (PPS) is the legally mandated payment structure for all new launch condos in Singapore. You pay 5% at booking, 15% at Sale & Purchase (total 20%), then 10% at foundation, 10% at RC framework, four 5% payments during construction stages, 25% at TOP, and 15% at CSC. The bank loan disburses progressively — you pay interest only on the amount drawn down.
How much cash do I need upfront for PPS?
Minimum 5% of the purchase price in cash for the booking fee. The remaining 20% of the down payment (S&P + part of foundation) can come from CPF OA. On a $1.5M condo, that is $75,000 cash minimum plus $225,000 from CPF, for a total 20% down payment of $300,000. Stamp duty ($44,600 BSD on $1.5M) is due separately within 14 days of S&P.
When does the bank loan start disbursing?
The bank loan kicks in after your 25% down payment (cash + CPF) is fully used up. For a 75% LTV loan, the bank starts drawing down from the 26th percent onwards. This typically happens partway through the foundation stage (30% cumulative). From that point, the bank pays each milestone and you pay monthly interest on the amount drawn.
Do I pay principal and interest during construction?
During construction, you typically pay interest only on the amount the bank has disbursed so far. Principal + interest (full mortgage payments) usually start at TOP when most of the loan has been drawn down. Some banks may require partial principal payments during construction — check your loan agreement.
What if I cannot make a milestone payment?
If you fail to make a progressive payment when due, the developer will issue a notice. You typically have 14 days to pay. If you still fail to pay, the developer can terminate the Sale & Purchase Agreement and you forfeit up to 20% of the purchase price. Make sure your CPF and bank loan are arranged before booking.
Can I switch from PPS to DPS after booking?
No. You must choose your payment scheme at the point of booking and it cannot be changed afterwards. DPS (Deferred Payment Scheme) is rarely offered in 2026 anyway. If offered, DPS comes with a 2-3% price premium but defers 80% of payments to TOP.
Related
- Progressive Payment Schedule (Detailed) — full milestone breakdown
- Down Payment for First Condo — 5% cash + 20% CPF
- New Launch Buying Process — showflat to keys
- Under-Construction Payment — what you pay during build
- Mortgage Calculator — monthly payments for any loan
Last updated Feb 2026. Payment schedule per Housing Developers (Control and Licensing) Act. Interest rates are indicative at 3.5%. Construction timelines vary by project. This is general information, not financial advice.