Buying under construction: the payment schedule, stage by stage
A new-launch purchase is not one cheque. It is ten, released against construction milestones over three to five years — and it changes what you need in cash.
When you buy a completed resale property, you pay for it and you get the keys. When you buy a unit that has not been built yet — TMW Maxwell on Tras Street, for example, expected to complete in 2028 — you pay in stages, against construction milestones, under the Progressive Payment Scheme. Every new launch in Singapore works this way. It is not the developer’s policy; it is the statutory structure.
The stages
- Option to Purchase granted — 5%
- Signing of the Sale & Purchase Agreement — 15% (20% cumulative)
- Completion of foundation work — 10%
- Completion of the reinforced concrete framework — 10%
- Completion of brick walls — 5%
- Completion of roofing and ceiling — 5%
- Electrical wiring, internal plastering, plumbing, door and window frames — 5%
- Car park, roads and drains serving the project — 5%
- Temporary Occupation Permit (TOP) — 25%
- Certificate of Statutory Completion (CSC) — 15%
Two things fall out of that list immediately. The first is that a quarter of the price is due at TOP, which is when you can actually move in. The second is that the final 15% comes at CSC, typically a year or so after that.
What this does to your cash flow
Your loan is disbursed progressively, not in one lump. That means you are servicing interest only on what has been drawn down so far, and your monthly repayment steps up over the construction period rather than starting at full size. For a buyer who is still selling another property, or whose income is rising, this is a genuine advantage and it is the main reason people choose new launches over resale.
The order in which funds are applied at each stage is fixed: cash first, then CPF Ordinary Account, then the bank loan.
What to check before you commit
Whether you can carry the stepped-up repayment at the far end of the schedule, not just the first one. Whether your CPF Ordinary Account balance survives the early stages. And what happens to your timeline if the project completes later than projected — the payments follow the construction, so a delay moves your money, and it moves your keys.
Bring me the unit you are considering and I will map the schedule against your own numbers before you sign anything.
Percentages are the standard statutory schedule for private residential property under construction. Exact staging can vary with the project and the sale and purchase agreement — read yours.