New Launch Condo Progressive Payment Schedule in Singapore: From 20% to TOP

Once you have exercised the Sale and Purchase Agreement and completed the initial 20% payment, buying a new launch condominium enters a very different phase. You are no longer working towards one short contractual deadline; instead, future payments follow the physical construction of the development.

As the project progresses from foundation work to structural framework, walls, roofing and eventually Temporary Occupation Permit, the developer issues progressive payment calls for prescribed portions of the purchase price. If you are financing the property with a housing loan, the bank also begins releasing the approved loan progressively rather than paying the entire loan upfront.

This guide continues from our post-booking guide covering the OTP, Sale and Purchase Agreement and initial 20% payment. It explains what happens during construction, how each progressive payment stage works and why your mortgage commitment generally increases as more of your housing loan is drawn down.

What Is the Progressive Payment Scheme?

When you buy a condominium that is still under construction from a licensed housing developer, you do not normally pay the entire purchase price at once. Instead, the Sale and Purchase Agreement provides for instalments to be paid as specified stages of construction are completed.

Before a construction-stage payment is called, a Qualified Person engaged by the developer, such as the project architect or professional engineer, certifies that the relevant milestone has been completed. The developer then issues the appropriate notice and supporting certification to the purchaser or the purchaser’s lawyer.

For the prescribed construction stages, payment is generally required within 14 days after the relevant notice is received. The important point is that the payment date depends on when construction reaches the certified milestone rather than on an estimated calendar date shown in a sales presentation.

Stage 1: The Initial 20% Has Already Been Paid

Before progressive construction payments begin, the prescribed payment schedule has already brought the purchase to 20% of the price. For the common situation where a 5% booking fee was paid, the subsequent balance payment would ordinarily bring the cumulative amount paid to 20%.

This 20% is the starting point for the construction phase. It is important to distinguish the percentage of the purchase price that the developer has called from the amount of your bank loan that may eventually finance the property.

If you have not yet reviewed how the booking fee, OTP, Sale and Purchase Agreement and initial payment work, read what happens after booking a new launch condo before continuing with the construction stages below.

Stage 2: Foundation Work Completed — 10%

The next prescribed milestone is the completion of the foundation work, including the relevant pile-cap stage. Once the required certification and notice are issued, another 10% of the purchase price becomes payable.

This brings the cumulative purchase-price payment from 20% to 30%. For buyers using bank financing, this can also be the stage around which the first portion of the housing loan begins to be disbursed, depending on the loan amount, required downpayment and the buyer’s particular financing arrangements.

Do not assume that the entire 10% foundation payment automatically comes from the bank. Your own cash and CPF contribution requirements have to be satisfied first according to the loan-to-value limits and the structure of your transaction.

Stage 3: Reinforced Concrete Framework Completed — 10%

The next 10% is called when the prescribed reinforced concrete framework stage has been completed. By this point, the physical structure of the development is becoming substantially more visible, although the units are still far from ready for occupation.

After this payment, the cumulative purchase price paid reaches 40%. Where a housing loan is already being progressively disbursed, another portion of the approved facility may now be released to meet the payment call.

This is also when many buyers begin to notice their monthly mortgage commitment increasing. The reason is straightforward: more of the housing loan has now been drawn and is therefore beginning to incur interest and repayment obligations under the chosen loan package.

Stage 4: Partition Walls Completed — 5%

Another 5% becomes payable when the partition walls of the unit reach the prescribed completion stage. The cumulative amount paid then reaches 45% of the purchase price.

Although 5% sounds smaller than the earlier 10% milestones, the absolute amount can still be substantial. On a S$2 million property, every 5% payment stage represents S$100,000 of the purchase price.

Whether that S$100,000 comes mainly from your housing loan, CPF savings, cash or a combination depends on how your financing has been structured and how much of the approved loan has already been released.

Stage 5: Roofing or Ceiling Stage Completed — 5%

The next prescribed payment is another 5% when the applicable roofing or ceiling construction stage has been completed. After this milestone, cumulative payments reach 50% of the purchase price.

At this point, half of the contractual purchase price has been called even though the development may still appear some distance from completion. Buyers should therefore avoid thinking of TOP as the point when most financial obligations suddenly begin.

The financial commitment has been building progressively throughout construction, just as the physical development has.

Stage 6: Doors, Windows, Wiring, Plastering and Plumbing — 5%

The next 5% stage relates to a group of internal works prescribed in the payment schedule. This includes the relevant door or door-frame and window-frame stage together with electrical wiring, internal plastering and plumbing.

Once this payment is made, the cumulative amount reaches 55% of the purchase price. The development is now moving beyond its major structural components and increasingly towards the internal systems and finishes needed for eventual occupation.

This stage is another reminder that the payment schedule is based on certified construction progress, not on whether the unit looks visually complete to someone observing the project from outside.

Stage 7: Car Park, Roads and Drains Completed — 5%

A further 5% becomes payable when the prescribed car park, roads and drains serving the housing project have been completed. The cumulative payment then reaches 60% of the purchase price.

This stage shifts some of the focus from the individual unit and building to the wider development infrastructure. A condominium cannot function simply because the apartment itself is structurally complete; the supporting access, drainage and common infrastructure must also be ready.

After this milestone, the next major contractual payment is considerably larger: the 25% stage associated with TOP or the relevant vacant-possession requirements.

Stage 8: TOP and the 25% Payment Stage

The next prescribed tranche is 25% of the purchase price once the relevant TOP or CSC documentation and the required completion notices for the building and supporting infrastructure have been provided. In the typical new launch journey, buyers commonly associate this major payment with the TOP and vacant-possession stage.

This is a significant jump compared with the preceding 5% construction milestones. If all the earlier prescribed stages have been reached, this 25% payment brings the cumulative purchase-price amount from 60% to 85%.

TOP stands for Temporary Occupation Permit. Broadly, it indicates that the development has reached the stage where occupation can be permitted, although TOP is not the same thing as the final Certificate of Statutory Completion or legal completion of the property transaction.

TOP is also the stage buyers naturally associate with key collection, inspection of the completed unit and the start of the defects-liability process. Those issues deserve their own detailed guide, so Article 4 in this series will deal specifically with TOP, key collection, defects, CSC and the final completion stage.

What About the Final 15%?

After the 25% TOP-stage payment, 85% of the purchase price has been accounted for under the standard payment schedule. The remaining 15% falls under the contractual completion provisions.

It is tempting to describe this simply as “15% payable at CSC”, but the actual prescribed mechanics are more nuanced. Depending on the relationship between the Completion Date, Final Payment Date and the issue of CSC, portions of the final monies may be paid to the developer or held by the Singapore Academy of Law as stakeholder before being released according to the Sale and Purchase Agreement.

For cash-flow planning, buyers should therefore recognise the remaining 15% as the completion balance rather than assuming that the entire amount necessarily changes hands in one simple transaction on the day CSC is issued. We will explain these mechanics in the next article together with TOP and legal completion.

The Full Payment Schedule at a Glance

The percentages below show how the contractual purchase price accumulates as construction progresses. They do not represent a guaranteed timeline in months or years because the actual payment calls depend on certified project progress.

How Does the Bank Loan Work During Construction?

One of the most important concepts for new launch buyers is that the bank generally does not release the entire approved housing loan on the day you purchase the property. For a building-under-construction property, the loan is progressively disbursed as payment calls arise and the applicable conditions for drawdown are satisfied.

That means an approved S$1.5 million housing loan does not necessarily mean S$1.5 million starts accruing interest immediately. Interest and repayment obligations begin as portions of the loan are actually released.

As construction progresses and additional loan amounts are drawn, the outstanding loan balance increases. Your monthly repayment can therefore increase progressively during construction rather than jumping immediately to the eventual full-loan instalment.

Different banks and loan packages can handle repayments during construction differently. Some loans provide for progressive principal-and-interest instalments based on the amount drawn, while other arrangements may involve servicing interest during part of the construction period before moving to full instalments later.

Your bank’s Letter of Offer and property loan fact sheet should therefore be treated as the authoritative source for your particular mortgage. Do not assume that another buyer in the same development will necessarily have the same monthly repayment pattern.

A Simple S$2 Million Example

Consider a hypothetical S$2 million new launch unit. The figures below illustrate the contractual payment percentages only and are not intended to represent the exact cash, CPF or loan contribution for a particular buyer.

• Initial 20%: S$400,000 — cumulative S$400,000
• Foundation 10%: S$200,000 — cumulative S$600,000
• Concrete framework 10%: S$200,000 — cumulative S$800,000
• Partition walls 5%: S$100,000 — cumulative S$900,000
• Roofing / ceiling 5%: S$100,000 — cumulative S$1,000,000
• Internal works 5%: S$100,000 — cumulative S$1,100,000
• External works 5%: S$100,000 — cumulative S$1,200,000
• TOP stage 25%: S$500,000 — cumulative S$1,700,000
• Completion balance 15%: S$300,000 — cumulative S$2,000,000

The example demonstrates why the later TOP stage matters so much for financing. A 25% payment on a S$2 million property represents S$500,000 of the contractual purchase price, although much of that amount may be met by the remaining housing-loan facility depending on the buyer’s financing structure.

The actual amount you personally need from cash or CPF at each stage depends on your approved loan, applicable loan-to-value limit, CPF usage and amounts already contributed. Use percentages as a payment roadmap, not as a substitute for your individual financing schedule.

How a 75% Housing Loan Changes the Picture

For an individual with no outstanding housing loan who satisfies the applicable tenure and age conditions, the current maximum bank housing-loan LTV can be 75%. That means the buyer still needs to fund at least 25% of the property price from the required combination of cash and other permitted resources such as CPF.

Because the contractual initial payment reaches only 20% before construction progresses, part of the next progress call may still need to complete the buyer’s required equity contribution before the bank funds the remaining purchase price. The actual drawdown sequence should be confirmed with your banker and lawyer because it depends on your approved LTV and transaction structure.

Buyers with existing housing loans, longer loan tenures or loans extending beyond the applicable age threshold may face lower LTV limits and therefore need substantially more of their own funds. Progressive payment does not change the underlying financing rules.

Can CPF Be Used for Progressive Payments?

CPF Ordinary Account savings can be used for eligible private residential property purchases, including permitted downpayment and housing-loan payments, subject to the applicable CPF housing rules and withdrawal limits. If CPF is part of your financing strategy, the necessary legal and CPF arrangements should already have been established during the post-booking stage.

What matters during construction is ensuring that your projected CPF balance is sufficient when a payment or mortgage obligation falls due. CPF savings continue to change as contributions enter the account and withdrawals are made, so a balance visible today may not be the same balance available at a future construction milestone.

It is also worth remembering that CPF is retirement savings. Using more CPF for housing can reduce the amount left earning interest for retirement, so the decision between using CPF and cash should form part of your broader financial planning rather than simply being treated as a way to minimise immediate cash outflow.

Why the Timing of Progress Payments Can Surprise Buyers

A common planning mistake is to assume that each construction stage will occur at regular six-month intervals. Real construction does not necessarily progress that neatly.

Two payment milestones can potentially occur closer together than expected, while another stage may take considerably longer. Construction delays can also push later payment calls and TOP further into the future.

For this reason, buyers should plan from a liquidity perspective rather than relying on a speculative calendar. You need to know where the next payment will come from whenever the certified call arrives.

What Happens When a Progress Payment Is Called?

When a prescribed construction milestone has been certified, the relevant documentation is issued and the payment process begins. If you have appointed a conveyancing lawyer and taken a bank loan, your lawyer and bank will generally be involved in coordinating the necessary loan and CPF disbursements.

You should still read every progress-payment notice rather than assuming everything will happen automatically. Check the stage being certified, the amount being called, the payment deadline and whether any additional cash or CPF action is required from you.

If your bank disburses another portion of the housing loan, you should also expect a corresponding update to your mortgage repayment. Banks commonly issue advice showing the amount released and the resulting instalment or repayment obligation.

Do Not Ignore a Progressive Payment Deadline

The payment deadlines in the Sale and Purchase Agreement are contractual obligations, not optional requests. Late payment can result in interest being charged according to the formula provided in the agreement.

If purchase-price monies and the applicable interest remain unpaid beyond the contractual period, the consequences can become significantly more serious. Under the prescribed Sale and Purchase Agreement framework, the developer may ultimately have rights to treat the agreement as repudiated and take the contractual steps necessary to annul the purchase.

Use the Progressive Payment Calculator Before You Buy

The percentages are easier to understand when they are converted into actual dollar amounts for the property you are considering. Our New Launch Progressive Payment Calculator allows you to model the different stages based on your intended purchase price and financing assumptions.

This can be useful even before booking because it shifts the conversation away from simply asking whether you can afford the initial 5% booking fee. A better question is whether your cash, CPF and income can comfortably support the entire journey from booking through construction and eventual full mortgage repayment.

The calculator is a planning tool rather than a substitute for the actual payment notices, loan documents or advice from your lawyer and bank. Your contractual documents and approved financing arrangements always take precedence.

What Happens When the Project Reaches TOP?

TOP marks a major transition in the buyer journey. The development has moved from a building-under-construction purchase towards a completed home that can be prepared for occupation, and the corresponding 25% contractual payment stage is significantly larger than the preceding construction calls.

This is also when buyers begin dealing with matters that have little to do with concrete frameworks and progress payments: notice of vacant possession, key collection, defects inspection, maintenance contributions, renovation preparation and eventually final completion.

The remaining 15% also needs to be understood properly because its stakeholder and release mechanics are more nuanced than simply describing it as “the CSC payment”. Article 4 will continue from this point and explain what buyers should expect from TOP through key collection, defects and final completion.

Final Thoughts

The progressive payment scheme makes a building-under-construction purchase fundamentally different from buying a completed property. Instead of financing the entire balance immediately, the purchase price and housing loan are gradually drawn as the physical development progresses.

The structure can make the early mortgage commitment feel relatively manageable, but buyers should not confuse lower early repayments with a lower eventual financial obligation. Every construction milestone moves the purchase closer to the full property price and increases the portion of the housing loan that has been drawn.

The most useful way to prepare is therefore to look beyond the next payment. Understand the full payment schedule, know your cash and CPF position, understand how your bank loan will be disbursed and maintain sufficient liquidity for payment calls that may not arrive according to an evenly spaced calendar.

By the time TOP approaches, you should already know how the remaining financing will work. That allows you to focus on the next exciting stage of the journey: collecting the keys and preparing the new property for occupation.

This article is intended as a general guide and does not constitute legal, financial or lending advice. Payment schedules, loan arrangements and individual circumstances can differ, so buyers should rely on their Sale and Purchase Agreement, bank documentation and advice from the relevant professionals for their particular transaction.