The Progressive Payment Scheme (PPS) is one of the most valuable but least-understood features of buying a Singapore new-launch condo. It’s why new launches can be gentler on cash flow than resale — if you know how to use it.
What Is the Progressive Payment Scheme?
Instead of paying for the entire property upfront on completion, PPS spreads the purchase price across construction milestones. You pay more as each stage is built — and you only service interest on the disbursed portion of your mortgage at each stage.
The Milestone Breakdown
| Stage | Cumulative Price | Trigger |
|---|---|---|
| OTP Booking | 5% | Booking fee (cash) |
| Exercise OTP / S&P | 20% | Within 8 weeks |
| Foundation Work | 30% | Piling completed |
| Reinforced Concrete Framework | 40% | Superstructure up to roof |
| Brick Walls | 45% | Brickwork complete |
| Roofing / Ceiling | 50% | Roof and ceiling complete |
| Electrical, Plumbing, Internal Walls | 55% | M&E complete |
| Car Parks, Drains, Roads | 60% | External infrastructure |
| Temporary Occupation Permit (TOP) | 85% | Ready for occupation |
| Certificate of Statutory Completion (CSC) | 100% | 12 months after TOP |
How Your Mortgage Behaves
Your bank disburses the loan in line with each milestone. In the early years, your monthly repayment is small because the loan outstanding is small. As more of the loan disburses, your payment scales up.
Example: $2M Unit, 75% Loan, 3.5% Interest, 30-year tenure
- Year 1 (foundation stage): Disbursed ~$600K. Monthly repayment ~$2,700.
- Year 2 (superstructure): Disbursed ~$1.1M. Monthly repayment ~$4,900.
- Year 3 (TOP): Disbursed $1.5M. Monthly repayment ~$6,700.
Why This Matters for Cash Flow
You can buy a property today but have the servicing burden ramp up over 3 years — by which time you may have had a bonus cycle, a promotion or rental income stabilising. For dual-income households planning career moves, this is a significant de-risking feature.
Deferred Payment Scheme (DPS) — Don’t Confuse
DPS is a rarer arrangement where you pay a small initial sum then defer the balance until TOP. It typically comes with a higher selling price. Most current new launches — including The Hill @ One-North — run standard PPS.
What to Budget Upfront
- 5% booking fee (cash).
- 15% on OTP exercise (CPF + cash).
- Full Buyer’s Stamp Duty and ABSD (cash or CPF).
- Legal fees (~S$2,500).
Common Mistakes
- Forgetting that the loan disbursement increases monthly payment over time.
- Locking in a fixed-rate loan too early, missing better rates at TOP.
- Not stress-testing affordability at year 3, only year 1.
See our detailed payment scheme page for the exact milestone schedule on The Hill @ One-North, or book an appointment to walk through your cash flow.