The stage-by-stage payment schedule for a property under construction, how the bank disburses against it, and how the monthly instalment builds.
The principle
A property bought under construction is paid for in instalments tied to construction milestones rather than in a single payment at completion. Each stage releases a fixed percentage of the purchase price to the developer.
The schedule
The standard schedule for private residential property runs: 5% on the Option to Purchase; 15% on signing the Sale and Purchase Agreement within eight weeks; 10% on completion of foundation; 10% on the reinforced concrete framework; 5% each on brick walls, ceiling and roofing, wiring and plastering, and roads and drainage; 25% on issuance of the Temporary Occupation Permit; and the final 15% at the Certificate of Statutory Completion.
How the bank disburses
The buyer funds the first portion. The bank starts disbursing only once the cumulative stage percentage exceeds the downpayment, and each subsequent milestone draws the incremental amount.
Because the loan is drawn progressively, the monthly instalment builds through construction rather than starting at the full amount. Interest accrues only on what has actually been drawn.
The cash component
The 5% booking fee must be paid in cash. The minimum cash requirement overall is tiered with the Loan-to-Value limit: 5% on a first housing loan, and 25% where one or more housing loans are already being serviced. CPF cannot cover that minimum cash portion.
Stamp duty and legal fees are paid in cash first, and may be reimbursed from the CPF Ordinary Account afterwards where the balance allows.
Why it matters for budgeting
The staged structure means the peak cash requirement sits at the front, around booking and exercise, rather than at handover. Understanding where that peak falls is the practical value of modelling the schedule before committing.
The progressive payment calculator sets out the upfront funds, the draw at each milestone and the instalment as it builds. The payment scheme page covers the schedule for Impressions at Dairy Farm.