What is Progressive Payment Scheme?
Buying a new launch property in Singapore can be both thrilling and perplexing. One crucial aspect that often perplexes potential buyers is the progressive payment scheme. Understanding this payment structure is essential to navigate the complex journey of acquiring a new property. In this guide, we will delve into the intricacies of progressive payments and unravel the timeline involved in purchasing a new launch property.
Breaking down the term, progressive payments refer to a phased payment system where buyers make payments at different stages of the construction process. This structured approach ensures that funds are allocated as needed for various milestones, offering financial stability to both developers and buyers.
Progressive Payment & Timeline Table
Here is an overview of the progressive payment scheme:
| Initial Payment | ||
| Stage & Payable Fees (%) | Timeline | Mode of Payment |
|---|---|---|
| Booking of Unit: Option to Purchase (5%) | Day 1 | Cash Only |
| Engage a Solicitor & Mortgage Banker Delivery of Sale & Purchase Agreement | Next 2 Weeks | Cash / CPF |
| Exercise Sale & Purchase (15%) | Within 3 Weeks | Cash / CPF |
| BSD / ABSD | Within 14 Days | Cash / CPF |
| Legal Fees: $2500 ~ $4000 | Cash / CPF | |
| Progressive Payment Based On Construction Stage | ||
| Stage 1: Foundation (10%) | Est. 6 ~ 9 months from launch | Cash / CPF / Loan |
| Stage 2: Unit Concrete Framework (10%) | Est. 6 ~ 9 months | Cash / CPF / Loan |
| Stage 3: Brick Walls (5%) | Est. 3 ~ 6 months | Cash / CPF / Loan |
| Stage 4: Ceiling/Roofing (5%) | Est. 3 ~ 6 months | Cash / CPF / Loan |
| Stage 5: Door/Window/Plumbing/Wiring (5%) | Est. 3 ~ 6 months | Cash / CPF / Loan |
| Stage 6: Carparks/Roads/Drains (5%) | Est. 3 ~ 6 months | Cash / CPF / Loan |
| Stage 7: TOP (25%) | Next 1 year | Cash / CPF / Loan |
| Stage 8: Cert. of Completion (15%) | Up to 27 years or your Loan Tenure | Cash / CPF / Loan |
