You signed the OTP. The booking fee cleared. Now what?
If you're buying a new launch condo in Singapore, you're on the Progressive Payment Scheme — and most buyer guides bury the actual numbers under four paragraphs of filler. Here's the math, the timeline, and where the cash actually goes.
What the Progressive Payment Scheme Actually Is
PPS is mandatory for every under-construction private residential property in Singapore. It's governed by the Housing Developers Rules, and it means you pay the purchase price in stages, tied to construction milestones. You're not servicing the full mortgage from day one — only on the amounts progressively drawn down. This is the single biggest cash flow advantage of buying new launch over resale.
The schedule:
- OTP exercised — 5% in cash (no CPF here)
- S&P agreement (within 8 weeks of OTP) — 15% in cash or CPF
- Foundation work — 10%
- Reinforced concrete frame — 10%
- Partition walls — 5%
- Roofing — 5%
- Windows, doors, external plastering — 5%
- Car park, roads, drains — 5%
- Temporary Occupation Permit (TOP) — 25% (this is the big one)
- Certificate of Statutory Completion (CSC, 12-18 months after TOP) — final 15%
That's 100% over roughly 3-5 years. You don't pay the full mortgage until TOP.
When Stamp Duty Is Due — This Catches People
Buyer's Stamp Duty (BSD) is due within 14 days of the OTP date. Not the TOP date. Not the S&P signing. Fourteen days from OTP.
On a $2M purchase, BSD is $69,600. On a $3M purchase, $119,600. For new launch condos, BSD can be paid directly from your CPF Ordinary Account — your conveyancing lawyer handles this with the CPF Board. Always have sufficient CPF balance, or cash as backup, before the 14-day window hits.
If you're buying a second property as a Singapore citizen, add 20% ABSD — $400,000 on a $2M purchase, due on the same 14-day timeline. For new launch condos, ABSD can also be paid from CPF OA. Married SC couples (at least one SC spouse) can apply for ABSD remission by selling their first property within 6 months of TOP or CSC.
BUC Loans: Floating Rate Only, No Exceptions
Your mortgage during construction is a BUC (Building Under Construction) loan. Two things most buyers don't realise: banks only disburse the loan in tranches matching the PPS milestones, and fixed rates are not available for BUC loans. You're on a floating rate pegged to SORA until TOP.
As of May 2026, the best BUC floating rates sit around 1.27% p.a. (3M SORA at ~1.05% + 0.22% bank spread). That's dramatically lower than the 3.7%+ SORA peak in early 2024. Your interest costs during construction are cheap right now — but SORA can move, and you're locked into floating for the entire construction period.
What You Actually Pay During Construction
A $2M purchase (typical 2BR in the RCR):
- Purchase price: $2,000,000
- Loan at 75% LTV: $1,500,000
- Downpayment: $500,000 (5% cash booking + 20% cash/CPF at S&P)
- BSD: $69,600 (payable from CPF OA for new launches — your lawyer arranges this)
- Minimum cash required: ~$100,000 (booking fee only; BSD can come from CPF)
During construction, you're only paying interest on the drawn-down portion. At the foundation stage, ~$150,000 is drawn — that's ~$159/month in interest. By the time the roof goes on, ~$600,000 drawn — ~$635/month. It's only at TOP, when the full $1.5M is drawn, that your monthly mortgage jumps to ~$5,853/month.
That's the real advantage of PPS: you get 3-4 years of cheap carrying costs before the full mortgage kicks in.
CPF Accrued Interest: A Silent Cost
CPF used for your property earns 2.5% p.a. accrued interest that must be returned to your CPF account when you sell. Use $300,000 of CPF over a 5-year holding period and you'll owe ~$39,380 back to CPF on top of the principal. That's money coming straight out of your sale proceeds. Factor it into your exit math.
The Deferred Payment Scheme Is Dead
DPS — where you deferred all payments until TOP — was abolished for private condos in 2007. As of May 2026, it's also been removed for Executive Condominiums. PPS is the only game in town.
Need help modelling what a specific project actually costs you? Every Ground Floor assessment calculates your actual PPS cash flow based on the project's pricing and your financial profile.