Construction Loan Progressive Payment Explained: Bank Rate Comparison Guide | Homejourney
Construction loan progressive payment in Singapore ties bank disbursements to new launch construction milestones, with rates from top banks like DBS (3.25% p.a.), OCBC (3.30%), and UOB (3.28%) as of January 2026.[1] Homejourney's bank rates tool lets you compare these instantly for construction loan Singapore options, ensuring you secure the best deal safely.
This cluster dives into progressive payment scheme mechanics, bank comparisons, and actionable steps, linking back to our pillar Construction Loan Progressive Payment Explained: Homejourney Guide for full coverage. At Homejourney, we prioritize your safety with verified data and transparent tools.
What is Progressive Payment Scheme in Construction Loans?
The progressive payment scheme (PPS) structures BUC property loan payments for uncompleted private properties like condos and ECs, mandating 5-10% installments per milestone from booking to CSC.[1][2] URA requires this to protect buyers, spreading developer payment over 3-4 years versus full upfront for resales.[1]
Buyers pay 20-25% upfront (5% booking cash + 15-20% S&P via cash/CPF, plus BSD).[1][2] Banks then fund the rest progressively: e.g., 75% LTV starts at foundation.[1][3] Interest-only payments begin on first disbursement, switching to principal+interest at TOP.[1]
Normal PPS (common) pays every 3-6 months from stage 4; deferred shifts bulk to TOP/CSC (rarer).[1][2] MAS TDSR (60% debt cap) applies from first payout.[1]
Typical PPS Schedule
| Stage | % of Price | Payment Type | Timeline |
|---|---|---|---|
| Booking | 5% | Cash | Immediate |
| S&P (8-9 weeks) | 15-20% | Cash/CPF (+BSD) | Within 9 weeks |
| Foundation | 5-10% | Cash/CPF/Loan | 3-6 months |
| Concrete Framework | 10% | Cash/CPF/Loan | 1 year |
| Brick Walls | 5% | Cash/CPF/Loan | 1.5 years |
| Ceiling/Roofing | 5% | Cash/CPF/Loan | 1.75 years |
| Doors/Windows/Plumbing | 5% | Cash/CPF/Loan | 2 years |
| External Works | 5% | Cash/CPF/Loan | 2.25 years |
| TOP | 25% | Cash/CPF/Loan | 3 years |
| CSC | 5-15% | Cash/CPF/Loan | 3.5-4 years |
Example: S$1.5M condo at 75% LTV (S$1.125M loan). Foundation (7.5%, S$112.5k) disbursed → ~S$328/month at 3.5% interest-only.[1]
How Construction Loans Work with Progressive Payments
Banks disburse after developer notifies lawyers of milestones, verified by quantity surveyors.[1][3] For high LTV (75%), first payout at foundation; lower LTV (60%) at partitions.[1] CPF funds non-loan parts post-approval.[1]
Benefits: Cash flow ease (low early payments), potential appreciation (e.g., S$200k pre-TOP gain), developer accountability.[1][4][5] Risks: Delays extend timeline, rate hikes (track via SORA), ABSD for investors (17-60%).[1] Always compute via Homejourney's mortgage calculator.
Singapore Bank Rate Comparison for Construction Loans (Jan 2026)
Compare new launch financing rates from Homejourney partners. Rates are SORA-based (3M SORA ~3.00% + spread), interest-only initially.[1] Use Homejourney bank-rates for live updates.
| Bank | Effective Rate (p.a.) | Lock-in | Best For |
|---|---|---|---|
| DBS | 3.25% (SORA + 0.25%) | 2 yrs | First-timers, fast approval |
| OCBC | 3.30% (SORA + 0.30%) | 2-3 yrs | Flexible refinancing |
| UOB | 3.28% (SORA + 0.28%) | 2 yrs | Investors, promo rates |
| HSBC | 3.35% (SORA + 0.35%) | 3 yrs | High-net-worth |
| Standard Chartered | 3.40% (SORA + 0.40%) | 2 yrs | Expats |
| Maybank | 3.45% (Board -1.55%) | 3 yrs | Competitive fixed |
| CIMB | 3.38% (SORA + 0.38%) | 2 yrs | Low fees |
| RHB | 3.50% (SORA + 0.50%) | 2 yrs | EC buyers |
| Public Bank | 3.42% (SORA + 0.42%) | 3 yrs | Long tenure |
| Hong Leong | 3.37% (SORA + 0.37%) | 2 yrs | Digital process |
| Citibank | 3.32% (SORA + 0.32%) | 2 yrs | Promo cashback |
The chart below shows recent interest rate trends in Singapore:
As seen, SORA stabilized at ~3.00% post-2025 hikes—time fixed rates if locking in.[1] DBS leads for speed; OCBC for flexibility. Compare all on Homejourney.
Actionable Steps: Secure Best Construction Loan Rates
- Calculate affordability: Use Homejourney calculator with purchase price, LTV, income (TDSR-compliant).[1]
- Compare rates: Visit bank-rates for real-time DBS vs UOB etc.[1]
- Apply multi-bank: Submit once via Singpass on Homejourney—get offers from all partners fast, less paperwork.[1]
- Time application: Pre-S&P for approval letter; use CPF post.[1]
- Monitor progress: Track via lawyer; refinance pre-TOP if rates drop.[1]
Insider tip: For new launches like those in Projects Directory , pair with Homejourney property search to match budget. Disclaimer: Rates fluctuate; not financial advice—consult Homejourney brokers.
FAQ: Construction Loan Progressive Payment
Q: When do monthly repayments start for progressive payment loans?
A: From first bank disbursement (e.g., foundation for 75% LTV), interest-only ~3.2-3.5% p.a.[1][3]
Q: Can I use CPF for progressive payments?
A: Yes, for non-loan portions after loan approval letter; full at TOP/CSC.[1]
Q: What's the difference between normal and deferred PPS?
A: Normal pays per milestone; deferred loads 25%+ at TOP/CSC—check developer S&P.[1][2]
Q: How to compare bank rates for BUC loans?
A: Use Homejourney's tool for DBS, OCBC, UOB spreads over SORA.[1]
Q: What if construction delays?
A: Payments shift to actual progress; installments unchanged on disbursed amount.[1][3]
Ready for Construction Loan Progressive Payment Explained: Bank Rate Comparison Guide? Start safely on Homejourney bank-rates—compare, calculate, apply. Explore projects at Projects and link to our pillar for more: Construction Loan Progressive Payment Explained: Homejourney Guide . Your trusted partner for secure property journeys.
