Construction Loan Progressive Payment Explained: Benefits of Applying via Homejourney
A construction loan progressive payment in Singapore is a structured financing plan for new launch properties where banks disburse loan funds to developers in stages matching construction milestones, allowing buyers to pay progressively rather than upfront.
Homejourney simplifies this process with multi-bank applications, Singpass integration, and real-time rate comparisons from DBS, OCBC, UOB, HSBC, and more, prioritizing your safety and trust in property financing[1][2][3].
What is a Progressive Payment Scheme?
The progressive payment scheme aligns your payments with the property's construction progress for BUC properties (Buildings Under Construction) like new launch condos and Executive Condominiums (ECs). Buyers pay 5-10% of the purchase price at key stages, such as foundation completion or Temporary Occupation Permit (TOP), verified by the developer[1][4].
This scheme starts with a 5% booking fee in cash, followed by 15% downpayment within 8 weeks of the Option to Purchase. Banks then handle loan portions from foundation onwards if your Loan-to-Value (LTV) ratio qualifies, typically up to 75% for first-time buyers under MAS rules[1][2].
Payments must be made within 14 days of developer notice to avoid penalties, ensuring transparency and buyer protection[1].
Standard Progressive Payment Schedule in Singapore
Here's a typical breakdown for a new launch condo or EC under the progressive payment scheme[1][2]:
| Stage | Payment (% of Purchase Price) | Payment Method |
|---|---|---|
| Booking Fee | 5% | Cash |
| Sign S&P Agreement (within 8 weeks) | 15% | Cash or CPF |
| Foundation Completion | 5-10% | Cash/CPF or Loan |
| Reinforced Concrete Framework | 10% | Cash/CPF or Loan |
| Partition Walls | 5% | Cash/CPF or Loan |
| Roofing/Ceiling | 5% | Cash/CPF or Loan |
| Windows/Plumbing/Electrical | 5% | Cash/CPF or Loan |
| Car Park/Drains | 5% | Cash/CPF or Loan |
| TOP | 25% | Cash/CPF or Loan |
| CSC | 15% | Cash/CPF or Loan |
Monthly installments begin after the first bank disbursement, based on your LTV. For a 75% construction loan Singapore, this starts at foundation; for 60%, at partition walls[1].
Key Benefits of Construction Loan Progressive Payments
Progressive payment schemes offer cash flow management by spreading costs over 2-4 years of construction, with lower initial installments rising gradually[1][5]. If delays occur, payments and repayments pause until milestones are met, protecting buyers[1].
- Lower early repayments free up funds for investments or emergencies.
- Aligns costs with property value appreciation as construction advances.
- For late buyers (e.g., 12 months post-launch), multiple stages may be called at once, but banks adjust disbursements accordingly[1].
Homejourney enhances these benefits with secure, verified processes, ensuring you get the best new launch financing without hassle.
How to Apply for a Construction Loan Progressive Payment
Follow these actionable steps for developer payment financing:
- Check Eligibility: Use Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator to assess TDSR and borrowing powerConstruction Loan Progressive Payment Explained: Bank Rate Comparison Guide | Ho... .
- Gather Documents: NRIC, income proof (last 3 payslips), CPF statements, Option to Purchase. Singpass auto-fills via Homejourney.
- Apply via Homejourney: Submit one form at https://www.homejourney.sg/bank-rates – sent to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and more.
- Compare Offers: Track status and side-by-side rates on the platform.
- Accept & Disburse: Bank disburses at milestones; start repayments post-first payout.
Processing takes 1-3 weeks; approval odds rise with strong credit and 30% downpayment[3].
Why Apply via Homejourney? Exclusive Benefits
Homejourney prioritizes user safety with verified bank partners and transparent tracking, skipping one-by-one applications. Key advantages:
- Singpass integration auto-fills income/CPF data instantly for faster approvals.
- Multi-bank submission: One app reaches 10+ banks like RHB, Public Bank, Hong Leong.
- Real-time offers comparison to secure lowest SORA-based rates.
- Status tracking and broker support for construction loan Singapore queries.
Unlike manual processes, Homejourney builds trust through feedback-driven improvements and secure data handling, perfect for BUC property loans[3]. Link to projects at Projects Directory for new launches.
Pro Tips for Progressive Payment Success
Insider advice from Singapore's market:
- Time applications early post-Option to lock rates before SORA fluctuations.
- Avoid delays: Prepare CPF top-ups for early stages.
- For ECs, note no HDB loans – banks only[2].
- Budget 1-2% extra for legal fees/ABSD.
- Monitor via https://www.homejourney.sg/bank-rates for best developer payment deals.
Disclaimer: This is general guidance; consult Homejourney brokers or financial advisors for personalized advice. Rates subject to MAS regulations and bank policies as of 2026.
FAQ: Construction Loan Progressive Payments
Q: When do monthly repayments start?
A: After first bank disbursement, e.g., foundation for 75% LTV[1].
Q: Can I use CPF for all stages?
A: Yes from downpayment onwards, subject to OA availability and withdrawal limits[1].
Q: What if construction delays?
A: Payments/repayments pause until milestone certification[1][5].
Q: How does Homejourney make applying easier?
A: One-click multi-bank apps via Singpass at https://www.homejourney.sg/bank-ratesConstruction Loan Progressive Payment Explained: Homejourney FAQs .
Q: Is this for condos only?
A: Applies to new launches, ECs, and BUC private properties[2][4].
Ready for secure construction loan progressive payment? Start with Homejourney's tools at https://www.homejourney.sg/bank-rates and explore properties at https://www.homejourney.sg/search. For full pillar coverage, see Construction Loan Progressive Payment Explained: Homejourney Guide .
