Payment Scheme For EC

When come to payment scheme for EC, It has two types of payment scheme as following:

1. Normal Payment Scheme (also known as Progressive Payment Scheme)

A Normal Payment Scheme will needs the buyer start paying the instalment once the bank kick start to pay the developer according to schedule of works been done. In Singapore a developer will take around thirty months to completion the project from ground zero.  Upon TOP, normally it will take another twelve to have legal completion. Therefore, the initial instalment will start from just few hundred dollars and at the end of the project, the instalment can go as high as few thousand dollars.

Progressive Payment Scheme drawdown chart:

 
Stage Percentage
 Upon the grant of Option to Purchase  5% (Booking Fee)
 Upon signing of the Sale & Purchase Agreement or within 9 weeks from the Option date 15%
 Completion of foundation work 10%
 Completion of reinforced concrete framework 10%
 Completion of brick walls 5%
 Completion of roofing /ceiling 5%
 Completion of electrical wiring, internal plastering, plumbing & installation of door & window frames 5%
 Completion of car park, roads & drains serving the housing project 5%
 Notice of Vacant Possession (TOP) 25%
 On Legal Completion Date 15%

Compare and check for different payment scheme for your property here

2. Deferred Payment Scheme (DPS)

A Deferred Payment Scheme is basically enable the buyer to defer the 80% payment unit the project going to TOP. However, the developer is required to seek approval from Controller of Housing before allow to offer any form of deferred payment scheme to purchasers.

There is no serving of loan during before TOP, unlike Progressive Payment Scheme, buyer has to make loan repayment base on the project progress. Nevertheless the purchase price for DPS is usually 2% – 4% higher compare to Progressive Payment Scheme.

For example, a property price of $1m under Progressive Payment Scheme will cost around $1.02m to $1.04m under Deferred Payment Scheme.

However DPS give second timer’s buyer better ability to managing their finances, due to in most o the case they are still serving their existing HDB loan.

Buyers who opt for DPS just need to pay the initial 20% downpayment,  3% Stamp Duty fee and some miscellaneous cost like legal fee etc during the first 9 weeks, then they can concentrate on their exiting loan only.

Deferred Payment Scheme drawdown chart:

 
Stage Percentage
 Upon the grant of Option to Purchase  5% (Booking Fee)
 Upon signing of the Sale & Purchase Agreement or within 9 weeks from the Option date 15%
 Notice of Vacant Possession (TOP) 65%
 On Completion Date 15%

Compare and check for different payment scheme for your property here

3. Maximum Loan Financing 

Executive Condo’s  buyers will have to obtain loans from banks or financial institutions as HDB does not provide housing loans for the purchase of EC. The ceiling for bank loans is as follows:

Date of Booking (EC) Loan Ceiling
 Date of booking on or after 20 February  2010  80% of purchase price

 

 

 

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