🏠 Property · Buying & Selling Process · Sub-Silo 5 · Tool #2

Progressive Payment Calculator Singapore 2026
Full BUC Milestone Schedule — Cash vs CPF vs Bank Loan, Construction Interest & Total Cost

Generate the complete Building Under Construction (BUC) progressive payment schedule for your Singapore new launch private property purchase. The standard NPS (Normal Progressive Payment Scheme) ties 10 payments to construction milestones — from the 5% option fee (cash only) to the 25% TOP payment and final 15% at legal completion. This calculator shows every milestone amount in S$, who pays it (you in cash, CPF OA, or your bank), the estimated construction interest accruing at each stage, and your total cost of ownership including lifetime mortgage interest.

✓ All 10 BUC Milestones ✓ Cash vs CPF vs Bank Split ✓ Construction Interest by Stage ✓ Monthly After TOP ✓ Total Ownership Cost
Option Fee5% Cash Only
S&P Balance15% Cash/CPF
Big TOP Hit25% of Price
Const. InterestPaid During Build
LTV75% or 55%
📈 Progressive Payment Inputs
S$

LTV determines how much the bank lends vs your own funds. For a first private property with no outstanding HDB loan: max 75% LTV (25% down). If you still have an HDB loan: 55% LTV (45% down).

S$

The 5% option fee is cash only (CPF not allowed). CPF can fund the remaining 15% of the down payment (for 25% LTV scenario). Enter S$0 if not using CPF for the down payment.

% p.a.
years

Standard Singapore new launch: 3–4 years to TOP. Legal completion follows 3–6 months after TOP. The milestone schedule is scaled proportionally to your expected TOP.

📈 Payment Schedule
📈

Enter your purchase price, LTV, CPF available, mortgage rate, and expected TOP month to generate the full BUC payment schedule with amounts, funding sources, and construction interest.

Payment by Milestone — Cash / CPF / Bank / Interest

Singapore BUC Progressive Payment Scheme 2026 — All 10 Milestones, Who Pays & Construction Interest

The Normal Progressive Payment Scheme (NPS) ties payments to 10 verifiable construction milestones, certified by a qualified architect. When the developer obtains each milestone certification, they issue a Notice of Payment to the buyer — triggering either a cash/CPF payment (for the first two stages) or a bank loan drawdown. The bank then pays the developer directly for milestone stages 3–10 on your behalf — and you pay the bank interest on the progressively increasing outstanding balance during construction.

The 10 BUC Payment Milestones — Standard NPS Schedule

#Milestone%PayerApprox. Timing
1Option Exercise (Booking)5%Cash onlyDay 1
2Sign S&P Agreement15%Cash / CPF~2 months
3Foundation Completed10%Bank loan~8 months
4Reinforced Concrete Framework10%Bank loan~14 months
5Brick Walls Completed5%Bank loan~20 months
6Roofing / Ceiling Completed5%Bank loan~24 months
7Doors, Windows & Fittings5%Bank loan~28 months
8Carpark, Drains & Roads5%Bank loan~32 months
9TOP (Occupation Permit)25%Bank loan~36 months
10Legal Completion (CSC)15%Bank loan~39 months

Down Payment Rules: The 5% Cash Trap

ComponentAmountCan Use CPF?Timing
Option fee (Booking)5% of priceNo — cash onlyImmediately at booking
Balance DP (S&P signing)15% (for 75% LTV)Yes — CPF OA~2 months after option
For 2nd property (45% down): 25% cash + 20% cash/CPF after option

How This Progressive Payment Calculator Works

Step 1 — Enter Price, LTV and CPF

Enter your purchase price and select the applicable LTV (75% for a first private property, 55% if you have an existing HDB loan, 45% for a second property). Enter CPF OA funds available for the 15% down payment balance. The calculator allocates CPF to the S&P milestone (stage 2) and cash to the option fee (stage 1).

Step 2 — Set Mortgage Rate and Expected TOP

Enter the mortgage rate (or your In-Principle Approval rate) and loan tenure. Select the expected months to TOP (typical: 36 months). The milestone timings scale proportionally to your TOP estimate — a 48-month project stretches each stage accordingly.

Step 3 — Review Full Schedule and Totals

The full 10-milestone table shows every payment amount, funding source (cash/CPF/bank), and estimated construction interest at each stage. The stacked bar chart visualises the payment composition across all milestones. The summary shows total cash, CPF, bank drawdowns, construction interest, and total cost of ownership.

3 Real Singapore BUC Examples — First-Timer 75% LTV, Second Property & HDB Upgrader

S$1.5M, 75% LTV, No HDB

Loan (75%)S$1,125,000
5% option (cash)S$75,000
15% S&P (CPF/cash)S$225,000
Construction interest~S$65,000
Monthly (TOP, 3.5%, 25yr)S$5,629
Total ownership cost~S$2.35M

S$2M, 45% LTV (2nd Property)

Loan (45%)S$900,000
5% option (cash)S$100,000
50% balance DPS$1,000,000
Construction interest~S$42,000
Monthly (TOP)S$4,503
Cash intensiveS$1.1M own funds

S$1.2M, 55% LTV (HDB Upgrader)

Loan (55%)S$660,000
5% option (cash)S$60,000
40% balance DPS$480,000
CPF from HDB proceedsAvailable after HDB sale
Construction interest~S$38,000
Monthly (TOP)S$3,303

3 Expert Tips — Prepare the 5% Cash, Budget for Construction Interest & TOP Surprise

1

The 5% Option Fee Must Be Cold Hard Cash — Set It Aside Before Viewing

Many first-time new launch buyers are caught off-guard: the 5% option exercise fee is entirely cash — no CPF, no bank loan. On a S$1.5M property, this is S$75,000 due within days of exercising the OTP. You cannot finance this amount after viewing — the OTP must be exercised typically within 3 weeks of the initial 1% booking fee. Prepare your full 5% cash before any showflat visit if you are serious about buying. If your cash is in fixed deposits or SSBs, check the withdrawal timeline: SSBs take 1 month to mature after redemption request. Failure to pay the 5% within the OTP window means forfeiting your 1% booking fee.

2

Budget for Construction Interest — It Is A Real Monthly Cost for 3–5 Years

New launch buyers often focus on the monthly instalment after TOP and forget the construction interest during the 3–5 year build period. On a S$1.125M loan at 3.5% with progressive drawdowns, construction interest is approximately S$65,000 over 36 months — S$1,800/month on average. This is a real monthly cash outflow while you are likely still paying rent or an HDB mortgage simultaneously. Budget: (1) your current housing cost; (2) construction interest (rising monthly as more loan is drawn); (3) the 5% option + 15% DP already paid. Only after TOP does the construction interest stop and the regular monthly instalment begin.

3

The 25% TOP Hit Is the Largest Single Payment — Plan 18 Months Ahead

Stage 9 (TOP) is the single largest milestone payment at 25% of the purchase price. On a S$1.5M property, this is S$375,000 drawn by your bank in one disbursement — triggering the full mortgage and monthly instalments. This is also the month your construction interest period ends and regular instalments begin. Many upgraders plan to sell their current HDB or condo to fund the next stages — start tracking your current property’s MOP and the new launch’s expected TOP 18–24 months in advance. If you need proceeds from your current property sale, the sale must complete before or at the same time as TOP — otherwise you need bridging finance.

16 FAQs — Singapore Progressive Payment BUC 2026, Milestones, Construction Interest & LTV

What is the BUC progressive payment scheme?+
The Building Under Construction (BUC) or Normal Progressive Payment Scheme (NPS) is the standard payment schedule for new launch private property in Singapore. Payment is made in 10 tranches tied to verifiable construction milestones, certified by a licensed architect. For each milestone reached, the developer issues a Payment Notice to the buyer. The first two stages (option and S&P) are paid from the buyer’s own funds (cash + CPF). Stages 3–10 are paid by the bank through progressive loan drawdowns — the buyer pays the bank interest on the outstanding balance during construction.
Why can’t I use CPF for the 5% option fee?+
CPF Board rules prohibit the use of CPF OA for the initial option exercise fee. The CPF Board’s policy is that CPF can only be used for property payments once a Sale & Purchase Agreement is signed. The option (booking) stage predates the S&P Agreement — so CPF cannot be used. Additionally, the CPF Board requires certain administrative steps (property valuation, HDB checks) before approving CPF usage, which takes time. The minimum cash required at any new launch in Singapore is therefore 5% of the purchase price, regardless of your CPF balance.
What happens if the developer misses a construction milestone?+
Under Singapore’s Housing Developers (Control and Licensing) Act, developers must complete construction within the Timeline for Delivery of Vacant Possession stated in the S&P Agreement (typically 36 months from the date of S&P, with a 12-month extension possible). If the developer fails to deliver TOP within this period, buyers are entitled to liquidated damages at 10% per annum of the purchase price for each day of delay beyond the agreed date. This compensation accrues automatically — buyers do not need to sue. Developers take this very seriously as penalties can be substantial.
What is the difference between TOP and CSC (Legal Completion)?+
TOP (Temporary Occupation Permit): issued by the Building and Construction Authority (BCA) when the building is structurally complete and safe for occupation. At TOP, buyers can collect their keys and move in. The 25% TOP payment triggers. CSC (Certificate of Statutory Completion): the final certificate confirming the building fully complies with all statutory requirements (fire safety, structural, utilities). Issued 3–12 months after TOP. The 15% legal completion payment triggers at CSC. You can occupy your unit between TOP and CSC — CSC is mainly an administrative milestone for the final payment.
What is construction interest and how much is it?+
Construction interest is the mortgage interest paid to the bank on each progressive loan drawdown during the construction period (stages 3–10). As each milestone is reached, the bank pays the developer and the outstanding loan balance increases. Interest accrues on the cumulative outstanding balance. Unlike the post-TOP instalment (which repays both principal and interest), construction-period interest is interest-only on the drawn amount. Total construction interest on a S$1.125M loan (75% of S$1.5M) at 3.5% over 36 months is approximately S$60,000–S$70,000 — a real cost that adds to the total property price.
What LTV applies for my first new launch private property?+
For a Singapore Citizen or PR buying their first private property (no outstanding home loans): 75% LTV (maximum) — meaning a minimum 25% down payment. For a first private property while still having an outstanding HDB loan: 55% LTV (45% down). For a second property (one outstanding residential mortgage): 45% LTV (55% down). For a third or subsequent property: 35% LTV (65% down). These rules are set by MAS under the Total Debt Servicing Ratio (TDSR) framework. The LTV dramatically affects how much own funds you need — a second property at 45% LTV requires nearly double the cash of a first property at 75% LTV.
Can I use my CPF OA to fund all of the 15% S&P balance?+
Yes — the 15% S&P balance can be funded entirely from CPF OA, provided you have sufficient CPF and the property meets CPF usage rules. CPF usage for private property is subject to the Valuation Limit (up to the purchase price or valuation, whichever is lower) and CPF Withdrawal Limit (up to 120% of valuation for 99-year leasehold; up to 100% for leasehold below 60 years). For most standard new launches, CPF can fully cover the 15% S&P portion. Note: if you have previously used CPF for another property (e.g., an HDB), any CPF refunded from the HDB sale can be reused for the new property’s down payment.
What if I want to sell during construction (sub-sale)?+
Selling a BUC property before TOP (called a sub-sale) is allowed in Singapore. The new buyer takes over your obligations under the S&P Agreement — including all future milestone payments and the outstanding loan. Key considerations: (1) SSD applies based on your holding period from the original purchase date (sub-sales within 3 years incur SSD at 4%–12%); (2) your bank loan must be discharged and the new buyer arranges new financing; (3) legal costs for the sub-sale are higher than a resale; (4) the sub-sale price may be above or below your purchase price depending on market conditions and construction progress. Sub-sale activity is tracked by URA as part of new sale statistics.
What is a Housing Developer’s Licence (HDL) and why does it matter?+
All private residential developers in Singapore must hold a Housing Developer’s Licence issued by the Controller of Housing (COH). This licence ensures: (1) buyers’ payments are held in a project account (separate from developer’s operating funds); (2) the project account can only be disbursed for construction costs; (3) developers must complete projects within stipulated timelines or pay liquidated damages. Before signing the S&P, confirm the developer holds a valid HDL for the specific project. This is one of the protections that makes Singapore new launch buying relatively safe compared to overseas property purchases where similar safeguards may not exist.
How does TDSR affect my new launch purchase?+
TDSR (Total Debt Servicing Ratio) limits the total monthly debt obligations (all loans) to 55% of gross monthly income. For new launch purchases, TDSR is assessed on the full monthly instalment after TOP — not the lower construction interest payment. This means you qualify based on the post-TOP mortgage payment, even though you only pay construction interest during construction. If you are simultaneously servicing an HDB mortgage during construction, both the HDB instalment and the estimated new launch TOP instalment are counted in TDSR. This can significantly tighten eligibility — factor in the 3–5 year construction period where you pay both.
What documents do I receive at each milestone?+
At each construction milestone, the developer issues a Notice of Payment (also called a Stage Payment Notice) addressed to your bank (and copied to you). The Notice: (1) certifies the milestone is completed (architect’s certificate attached); (2) requests payment of the specified percentage; (3) gives a payment due date (typically within 14 days of notice). Your bank receives this automatically (you have assigned your loan to cover these payments) and disburses accordingly. You do not need to do anything for bank-funded stages — the bank processes it automatically. You will receive the bank’s disbursement advice confirming each payment.
Can I switch from fixed to floating rate during construction?+
Yes — you can switch mortgage rate packages during the construction period (before loan is fully drawn). Many buyers lock in a rate at booking (In-Principle Approval) but the actual Loan Offer is issued closer to drawdown. During the construction period, if interest rates drop significantly, you can refinance to a new bank (though this involves new legal costs and the new bank issues a fresh loan offer). Some banks offer rate lock guarantees (fix your rate for the full construction period at a small premium). This protects against rate rises during the 3–5 year build. With SORA rates volatile in 2024–2026, rate lock is worth considering.
What is the 1% booking fee vs the 5% option fee?+
At many new launch showflats, the initial “expression of interest” or “booking” at the launch event requires a 1% booking cheque — this secures your unit during the launch ballot and gives you time to arrange financing. Typically 3 weeks after the launch, you exercise the formal OTP by paying the remaining 4% (bringing the total to 5%). The 1% booking fee is part of the 5% option fee — they are not separate. If you decide not to proceed after paying the 1% but before exercising the full OTP, you forfeit the 1%. Once you exercise the OTP (pay the full 5%), you have a binding contract to complete within the stipulated period.
What happens at legal completion (CSC stage)?+
Legal completion (triggered by the Certificate of Statutory Completion) is the final stage of the BUC purchase. At this stage: (1) the developer’s title to the land is transferred to the strata title of individual owners; (2) the bank pays the final 15% balance; (3) the individual strata certificate of title is issued; (4) the MCST (Management Corporation Strata Title) is formally formed. At CSC, you become the full legal owner (strata title holder). Between TOP and CSC (3–12 months), you are in occupation but the developer still holds the head title. CSC also marks the beginning of the developer’s defects liability period — typically 12 months during which you can submit defect claims.
Can I rent out my new launch unit before TOP?+
No. You cannot rent out the unit before TOP because you cannot physically access or deliver the unit to a tenant before construction completes and TOP is issued. After TOP (when keys are collected), you can start renting immediately for private condos — there is no MOP for private property. For Executive Condominiums (ECs): the 5-year MOP applies, meaning you cannot rent the entire unit for the first 5 years (you can rent individual rooms). For private condos, rental income can start from the month you collect keys at TOP. Some investors factor in the rental income from TOP as part of their return calculation.
Is a new launch BUC purchase safer than resale?+
New launch purchases under the BUC scheme have strong legal protections: (1) developer must hold HDL; (2) buyer payments go into a project account; (3) liquidated damages if developer misses deadlines; (4) Housing Developers Rules regulate the entire process. Resale is simpler (inspect first, complete in 3–4 months) but has no LD protection. The main BUC risk: construction delays, design changes, and the 3–5 year wait during which your life circumstances (income, family size, HDB situation) may change significantly. Resale risk: property may have defects (inspect carefully), seller may withdraw (OTP is binding but disputes happen). Overall, the legal framework for new launches in Singapore is robust by international standards.
Legal Disclaimer & Editorial Transparency. BUC payment milestones and percentages per Singapore Housing Developers (Control and Licensing) Act. Standard NPS: 5% option (cash only) + 15% S&P (cash/CPF) + 10% foundation + 10% RCF + 5% walls + 5% roof + 5% fittings + 5% roads + 25% TOP + 15% CSC. LTV: 75% (1st, no outstanding loan), 55% (1st, with HDB loan), 45% (2nd property), 35% (3rd+). Construction interest estimated as interest on cumulative drawdown at each stage — actual interest depends on drawdown timing and bank’s rate. CPF OA can fund 15% S&P portion (not the 5% option fee). All milestone timings approximate. Verify with your developer and lawyer. Not financial or legal advice. Operated by MAFHH INTERNATIONAL LTD.