EC Progressive Payment Scheme: Your Complete FAQ Guide
The EC progressive payment scheme is the standard financing structure for new Executive Condominiums in Singapore, allowing you to spread payments across construction milestones rather than paying upfront. Understanding how this scheme works—from payment stages to loan disbursement timing—is critical for managing your cash flow and making informed financing decisions. At Homejourney, we prioritize your financial safety and confidence, which is why we've compiled the most frequently asked questions about EC payment schemes to help you navigate this process with clarity and trust.
This guide focuses specifically on the Normal Progressive Payment Scheme (NPS), the most common option for EC purchases. If you're exploring all EC financing options comprehensively, we recommend reviewing our EC Progressive Payment Scheme Financing Tips: Homejourney Guide 2026 for deeper insights into payment structures and strategic planning.
How Does the EC Progressive Payment Scheme Work?
The progressive payment scheme aligns your payments with the developer's construction progress. Rather than paying the full purchase price upfront, you make staged payments as the developer completes specific building milestones. This approach protects you by ensuring payments correspond to tangible construction progress, while also allowing you to manage cash flow more effectively throughout the development period.
Payments typically begin with a booking fee and continue through foundation work, structural completion, finishing stages, and final handover. Each stage triggers a payment obligation, and your bank disburses loan funds at corresponding milestones. This means your monthly mortgage installments don't begin until your bank makes its first disbursement, which depends on your loan-to-value (LTV) ratio.
What Are the Typical Payment Stages?
A standard EC progressive payment schedule includes these stages:
- Booking (5%): Due upon unit booking
- Sale & Purchase Agreement (15%): Due within 8-9 weeks of booking
- Foundation Work (10%): Upon completion
- Reinforced Concrete Framework (10%): Upon completion
- Partition Walls (5%): Upon completion
- Roofing & Woodwork (5%): Upon completion
- Car Park, Roads & Drains (5%): Upon completion
- Temporary Occupation Permit/TOP (25%): Upon issuance
- Certificate of Statutory Completion/CSC (15%): Upon issuance
The total adds up to 100% of your purchase price. However, these percentages can vary slightly between developers, so always verify the exact breakdown in your Sales & Purchase Agreement before committing.
When Does My Bank Loan Disburse?
Your bank's first loan disbursement depends entirely on your approved loan-to-value (LTV) ratio. If you secure a 75% loan, the bank typically disburses at the foundation stage. With a 60% loan, disbursement occurs at the partition walls stage. This timing is critical because your monthly mortgage installments only begin after the bank's first disbursement.
For example, if your 75% loan disburses at foundation (10% of total price), you'll start paying monthly installments from that point forward. The remaining 25% (your downpayment) must be paid from your own cash or CPF throughout the construction period, before the bank disburses its portion.
To calculate your exact disbursement timeline and monthly payments, use Homejourney's mortgage eligibility calculator at Bank Rates , which factors in your LTV ratio and shows when payments begin.
What If I Purchase After Construction Has Started?
If you buy an EC after the initial launch—say 12 months later when construction is already underway—the developer will typically call for multiple payment stages simultaneously after you sign the Sales & Purchase Agreement. For instance, if the reinforced concrete framework is already complete, you might need to pay both the foundation stage (10%) and reinforced concrete framework stage (10%) immediately upon signing.
This "catch-up" payment can represent a significant cash outflow, so factor this into your affordability assessment. Always request a detailed payment schedule from the developer before committing, showing exactly which stages have been completed and what you'll owe upon signing.
How Much Time Do I Have to Make Each Payment?
You must make each progressive payment within 14 days of receiving the developer's payment notice. Missing this deadline can result in additional charges or penalties, so it's essential to maintain clear communication with your legal representative and ensure funds are available when payment calls arrive.
Your legal representative will notify you when the developer signals completion of each stage. Coordinate with your bank to ensure loan disbursement timing aligns with these payment deadlines, preventing cash flow gaps.
What Additional Costs Should I Budget For?
Beyond the progressive payments, budget for these additional costs:
- Stamp Duty (BSD): Payable upon signing the Sales & Purchase Agreement, calculated on the purchase price
- Legal Fees: Typically $1,500-$3,000 for conveyancing services
- Valuation Fee: Required by your bank, usually $300-$600
- Home Insurance: Mandatory for mortgage holders, approximately 0.3-0.5% of loan amount annually
- Property Tax: Annual tax payable to the government
These costs are separate from your progressive payments. Stamp duty is particularly significant—for a $500,000 EC, you might pay $9,600 in stamp duty alone. Factor these into your total financing plan.
Can I Use CPF for Progressive Payments?
Yes, you can use CPF for most progressive payments (except the initial 5% booking fee, which must be cash). Specifically:
- Initial downpayment (15%): Cash or CPF
- Subsequent stages: Cash, CPF, or loan funds
- Stamp duty and legal fees: Cash or CPF
Using CPF reduces your immediate cash requirements, but remember that CPF withdrawals are limited to your available OA (Ordinary Account) balance. Coordinate with your CPF board to ensure sufficient funds are available when payment deadlines arrive. Your bank and legal representative can guide you through the CPF withdrawal process.
How Does Interest Accrue During Construction?
This is crucial: mortgage interest begins accruing immediately after each progressive payment, not just after TOP or handover. If your bank disburses $300,000 at the foundation stage, you'll start paying interest on that amount from that date forward, even though construction continues for another 2-3 years.
This is a key difference from the Deferred Payment Scheme, where you defer 80% of payments until TOP, potentially reducing interim interest costs. When comparing payment schemes, factor in the total interest you'll pay across the entire construction period—it's often substantial and can influence your financing decision.
To compare interest costs across different loan scenarios, check current rates from major Singapore banks on Homejourney's Bank Rates page, where you can see offerings from DBS, OCBC, UOB, HSBC, Standard Chartered, and other lenders.
What Happens If Construction Is Delayed?
A key advantage of the progressive payment scheme is that payment timelines adjust if construction delays occur. The developer communicates revised completion dates, and your payment schedule shifts accordingly. This protects you from paying for stages that haven't been completed.
However, construction delays can extend your construction loan period, meaning you'll pay interest for longer. If a project originally scheduled for 3-year completion extends to 4 years, you'll pay an additional year of interest. This is why it's important to review the developer's track record and construction timeline carefully before purchasing.
Should I Choose Progressive Payment or Deferred Payment?
This depends on your financial situation:
Choose Progressive Payment Scheme if:
- You have stable income and can manage monthly installments during construction
- You want potentially lower total purchase price (PPS units are often priced lower than DPS)
- You prefer predictable, gradual payment obligations
- You're comfortable with interest accruing from the first disbursement
Choose Deferred Payment Scheme if:
- You want to minimize interim interest costs during construction
- You prefer deferring 80% of payments until TOP (typically 2-3 years later)
- You have lower immediate cash flow but expect stronger financial position at TOP
- You want to avoid continuous payment obligations during construction
For a detailed comparison and personalized recommendation based on your financial profile, apply via Homejourney's Bank Rates page to connect with our mortgage brokers, who provide guidance tailored to your circumstances.
How Can I Calculate My Exact Progressive Payments?
To calculate your progressive payment obligations:
- Confirm the exact purchase price and payment percentages from your Sales & Purchase Agreement
- Calculate your downpayment (typically 20-25% of purchase price)
- Determine your approved LTV ratio with your bank
- Identify when your bank will disburse at each stage based on your LTV
- Calculate monthly installments from each disbursement date using your interest rate
- Add stamp duty, legal fees, and other costs to your total cash requirements
Homejourney's mortgage eligibility calculator simplifies this process—enter your purchase price, LTV, and interest rate, and it generates your complete payment schedule showing exactly what you'll owe at each stage and when monthly payments begin.
What If I Can't Make a Payment on Time?
Missing a progressive payment deadline can trigger penalties and potentially breach your Sales & Purchase Agreement. In severe cases, the developer could forfeit your booking fee and terminate the sale. Always prioritize these payments and communicate with your bank well in advance if cash flow issues arise.
If you anticipate difficulty, discuss options with your legal representative immediately—some developers may grant short extensions, though this is not guaranteed. Prevention is far better than remediation, so ensure your financing is solid before committing.
Frequently Asked Questions
Q: Can I refinance my EC loan after TOP?
Yes, many buyers refinance after TOP to secure better rates or adjust their loan terms. At that point, you transition from a construction loan to a standard residential mortgage, often at more favorable rates. Homejourney makes refinancing simpler with our multi-bank comparison—compare refinancing offers from DBS, OCBC, UOB, HSBC, Standard Chartered, and others on our Bank Rates page to find the best terms.
Q: What's the difference between "Notice of Vacant Possession" and "Certificate of Statutory Completion"?
Notice of Vacant Possession (NVP) signals the developer's readiness to hand over the unit, typically triggering a 25% payment. Certificate of Statutory Completion (CSC) is the official government certification that the building meets all regulations, triggering the final 15% payment. CSC typically comes 1-2 months after NVP. Both are critical milestones in your payment schedule.
Q: How does my TDSR ratio affect my progressive payment timing?
Your Total Debt Service Ratio (TDSR) determines your maximum loan amount, which influences your LTV ratio and thus your bank's disbursement schedule. A lower TDSR might mean a lower LTV (say 60% instead of 75%), pushing your first disbursement to a later construction stage. This extends your cash requirements during early construction phases. Review your TDSR carefully when assessing affordability—apply via Homejourney to see how different scenarios affect your borrowing power.
Q: Should I lock in a fixed interest rate now or wait for variable rates?
This depends on market conditions and your risk tolerance. Fixed rates provide certainty—your monthly payment never changes. Variable rates (typically SORA-based) fluctuate with market conditions, offering potential savings if rates fall but risk if rates rise. Review current rate offerings from major banks on Homejourney's Bank Rates page to compare fixed vs. variable options and make an informed decision based on current market conditions.
Q: Can I pay off my construction loan early without penalties?
Most banks allow early repayment of construction loans without penalties, but verify this in your loan agreement. After TOP, when you refinance to a standard mortgage, early repayment terms may differ—some fixed-rate mortgages include prepayment penalties. Always clarify these terms with your bank before committing.
Making Your EC Financing Decision with Confidence
The EC progressive payment scheme offers flexibility and consumer protection by aligning payments with construction progress. However, success requires careful planning, accurate cash flow projections, and understanding exactly when each payment is due and how your mortgage interest accrues.
At Homejourney, we're committed to helping you make confident financing decisions. Our platform prioritizes your safety and trust by providing transparent information, verified data, and tools to compare options across all major Singapore banks. Use our Bank Rates page to compare current rates, calculate your exact mortgage obligations, and apply to multiple banks with one submission—our Singpass/MyInfo integration auto-fills your application in seconds, with income and employment data verified instantly.
