Typical timeline and payment schedule for purchasing a new launch property in Singapore and the benefits in terms of interest saving

Stage 1: Before Monthly Loan Repayments

1. Booking and Obtaining Option to Purchase (OTP):

• Pay a 5% booking fee in cash to secure the OTP

• Engage a solicitor and select a mortgage loan
  

1. Exercising OTP and Signing Sales & Purchase Agreement (S&PA):

• Exercise the OTP within 3 weeks of receiving the S&PA

• If OTP expires, 25% of booking fee is forfeited
  

1. Downpayment and Stamp Duties:

• Pay 15% downpayment (cash or CPF) within 8 weeks of OTP date

• Pay Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD) within 2 weeks of signing S&PA
  

Stage 2: Start of Monthly Loan Repayments

1. Progressive Payments Aligned with Construction Milestones:

• Pay 5-10% of purchase price at each construction milestone (foundation, reinforced concrete, walls, roofing, etc.)

• Payments are made either in cash, CPF, or through bank loan disbursements

• Developer may call for multiple stages of payments at once if you purchase later in the project timeline
  

1. Final Payments:

• 25% upon Temporary Occupation Permit (TOP)

• 15% upon Certificate of Statutory Completion (CSC)
  

When purchasing a new launch property, buyers often benefit from a progressive payment scheme, which means they pay for the property in stages as it is being built. This can result in paying less interest compared to buying a resale property, where the entire loan amount is typically disbursed at once, and interest payments start immediately.

In a progressive payment scheme, the initial payments are usually smaller and increase as construction progresses. This can lead to significant interest savings, especially during the early stages of construction when the outstanding loan balance is lower. Additionally, new launch properties may offer early bird discounts or other incentives that can further reduce the overall cost.

However, it’s important to consider all factors, including the total cost of ownership, potential rental income, and market conditions, before making a decision.

For expert real estate advice, contact Kaeden Ong at +65 9048 0660. Tap into his extensive knowledge and experience to meet your property needs.