Answer
What Is the Progressive Payment Scheme?
Buying a new launch condo? You don't pay everything upfront. Here's how the payment schedule works.
Answer: The Progressive Payment Scheme (PPS) means you pay for your new launch condo in stages as it's being built — not all at once. You start with a 20% down payment (5% booking + 15% at S&P signing), then pay 5–10% at each construction milestone. Your bank loan is drawn down progressively, so you only pay interest on the amount disbursed, not the full loan. This is the standard payment method for all new launches in Singapore.
Typical Progressive Payment Schedule
Each milestone triggers a payment. The exact schedule may vary slightly by developer, but this is the standard breakdown:
| Stage | % of Price | Cumulative |
|---|---|---|
| Booking fee (on exercise of OTP) | 5% | 5% |
| Signing of S&P Agreement | 15% | 20% |
| Foundation work completed | 10% | 30% |
| Reinforced concrete framework | 10% | 40% |
| Partition walls | 5% | 45% |
| Ceiling / roofing | 5% | 50% |
| Electrical wiring / plumbing | 5% | 55% |
| Car park, roads, drains | 5% | 60% |
| TOP (Temporary Occupation Permit) | 25% | 85% |
| CSC (Certificate of Statutory Completion) | 15% | 100% |
Schedule per Housing Developers (Control and Licensing) Act. Actual milestones may vary slightly by project.
What It Looks Like: $1.5M Condo Example
| Stage | Amount | Total Paid |
|---|---|---|
| Booking fee (5%) | $75,000 | $75,000 |
| S&P signing (15%) | $225,000 | $300,000 |
| Foundation (10%) | $150,000 | $450,000 |
| Reinforced concrete (10%) | $150,000 | $600,000 |
| Walls → Car park (4 × 5%) | $75,000 each | $900,000 |
| TOP (25%) | $375,000 | $1,275,000 |
| CSC (15%) | $225,000 | $1,500,000 |
How Loan Drawdown Works Under PPS
1. You pay the 25% down payment first
For a 75% LTV loan, you pay the first 25% out of pocket (5% cash minimum + CPF). The bank loan kicks in from the 26th percent onwards — meaning the bank starts drawing down at the foundation stage.
2. Interest on amount drawn only
You don't pay interest on the full loan amount from day one. If the bank has disbursed $300K of your $1.125M loan, you pay interest only on $300K. This means your monthly payments start small and grow as more is drawn down.
3. Full repayment starts at TOP
Once the property gets TOP and the full loan is disbursed, your regular mortgage payments begin in full. This is when your monthly payment reaches its final amount.
PPS vs Deferred Payment Scheme (DPS)
| Feature | Progressive (PPS) | Deferred (DPS) |
|---|---|---|
| When you pay | In stages during construction | 20% upfront, 80% at TOP |
| Price premium | Standard price | 2–3% higher |
| Interest during construction | On amount drawn (grows gradually) | None until TOP |
| Availability | Always available | Not always offered by developers |
| Best for | Most buyers — lower total cost | Buyers who need time to sell existing property |
DPS is rarely offered these days. Most new launches use PPS only.
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FAQ
What is the Progressive Payment Scheme?
The Progressive Payment Scheme (PPS) is the standard payment method for new launch condos in Singapore. Instead of paying the full purchase price upfront, you pay in stages as the development reaches construction milestones — from foundation to completion.
How much do I pay at each stage?
The typical schedule is: 5% booking fee + 15% on signing S&P (total 20%), then progressive payments of 10% at foundation, 10% at reinforced concrete, 5% at walls, 5% at ceiling, 5% at roofing, 5% at windows and doors, 5% at car park and roads, 25% at TOP, and 15% at CSC (legal completion).
Do I pay interest on the full loan amount from day one?
No. Under PPS, your bank draws down the loan progressively — you only pay interest on the amount drawn so far. For example, if the bank has drawn down $300K of a $1M loan, you pay interest only on the $300K. This keeps your monthly payments lower during construction.
What is the Deferred Payment Scheme (DPS)?
The Deferred Payment Scheme allows you to defer most of the payment until the property receives its Temporary Occupation Permit (TOP). You pay 20% upfront and the remaining 80% only at TOP. However, DPS typically comes with a 2–3% price premium and is not always available.
Can I use CPF for progressive payments?
Yes. You can use CPF OA funds for the progressive payments, subject to the CPF withdrawal limits (Valuation Limit and Additional Withdrawal Limit). Your CPF will be drawn down progressively alongside the bank loan to meet each payment milestone.
Related
- Mortgage Calculator — estimate your monthly payments
- Cash Needed to Buy a Condo — full breakdown of upfront costs
- What Is an OTP? — the first step before progressive payments
- Stamp Duty Calculator
- Down Payment for First Condo
Last updated Feb 2026. Payment schedule per Housing Developers (Control and Licensing) Act. This is informational, not financial or legal advice.