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Buying a new launch condo in Singapore involves a specific sequence of legal and financial steps — from the Option to Purchase to the Sale & Purchase Agreement, through the progressive payment schedule tied to construction milestones. Understanding each payment stage, the deadlines involved, and how CPF and bank loans interact with the timeline is essential for any buyer. This guide walks through every step of the new launch payment process for 2026.
Step 1: Booking Fee and Option to Purchase (OTP)
The first step in buying a new launch condo is exercising the Option to Purchase (OTP). The developer issues the OTP upon payment of the booking fee — typically 5% of the purchase price in cash. This is non-refundable if you do not proceed to sign the Sale & Purchase Agreement. Once you receive the OTP, you have up to 3 weeks (21 days) to decide whether to exercise the option by signing the S&P. During this period, your lawyer reviews the S&P, you arrange your bank loan (if applicable), and you confirm your CPF withdrawal amounts.
Step 2: Signing the Sale & Purchase Agreement (S&P)
Upon signing the S&P, you pay an additional 15% of the purchase price — bringing the total downpayment (if using a bank loan with 75% LTV) to 20%. This 15% can be paid via CPF OA and/or cash. The S&P is a legally binding contract between you and the developer. From the S&P signing date, the progressive payment schedule begins. Your lawyer will handle the S&P execution and stamp duty payment — Buyer’s Stamp Duty (BSD) is due within 14 days of exercising the OTP or 30 days of completing the property, whichever is earlier. ABSD is also due at this stage if applicable.
Normal Progressive Payment Scheme (NPPS) Explained
Under the Normal Progressive Payment Scheme (NPPS) — the default for new launches — payments are made in tranches tied to construction milestones certified by a licensed architect. The standard NPPS schedule:
- On OTP: 5% cash (booking fee)
- On S&P: 15% (CPF/cash)
- Foundation: 10%
- Reinforced Concrete Framework: 10%
- Brick Walls: 5%
- Ceiling/Roofing: 5%
- Electrical Wiring/Plumbing: 5%
- Car Park: 5%
- Temporary Occupation Permit (TOP): 25%
- Certificate of Statutory Completion (CSC): 15%
Total: 100%. At each stage, the developer issues a payment notice and you have 14 days to make the payment from the date of the architect’s certification notice.
Deferred Payment Scheme (DPS)
Some developers offer a Deferred Payment Scheme (DPS) where 80% of the payment is deferred until TOP. Under DPS, you pay 20% at S&P (5% booking + 15%) and the remaining 80% at TOP — when you take the bank loan. DPS is beneficial for buyers who: (1) need time to accumulate funds before taking a large mortgage; (2) are selling an existing property and need the proceeds before committing to large payments; or (3) prefer to minimise loan interest during the construction period. DPS properties typically command a small premium (2–3%) over NPPS equivalents to compensate the developer for deferred cashflow.
How Bank Loans Are Disbursed for New Launches
For new launches under NPPS, the bank loan is disbursed in tranches matching each construction milestone payment. This means your mortgage interest charges accumulate progressively — initially on a small base (foundation payment disbursed), increasing at each milestone. Total interest paid over the construction period (typically 3–5 years) is significantly lower than if you had taken a full lump-sum mortgage from day one. Banks typically offer an “Interest Absorption Scheme” (IAS) or standard progressive disbursement — confirm with your mortgage broker which structure applies to your chosen development.
CPF Usage in New Launch Progressive Payments
CPF OA can be used to fund new launch payments subject to: (1) the CPF Withdrawal Limit (WL) — typically the property’s Valuation Limit; (2) the property’s remaining lease must be at least 20 years; (3) total CPF used (across all properties) cannot exceed your OA balance. For new launches, CPF OA is applied at each milestone payment — your CPF board account is linked to your conveyancing lawyer’s client account. The CPF contribution continues while your loan is drawn down, building up a balance that can offset future milestone payments. A consultant can model your specific CPF utilisation for each payment stage.
What Happens If You Can’t Pay at a Milestone?
Missing a milestone payment deadline (14 days from notification) triggers a default notice. The developer is entitled to charge interest on overdue amounts (typically 10–12% per annum) and ultimately to rescind the contract if payment remains unpaid. To avoid this: (1) ensure your bank loan facility is in place well before TOP; (2) maintain sufficient CPF OA balance; (3) if selling an existing property to fund the purchase, time the sale proceeds to arrive before the TOP payment is due. If you anticipate payment difficulty, contact the developer immediately — most will accommodate short extensions rather than rescind and re-sell.
