Home Loans

What You Need To Know About The Progressive Payment Scheme




Under the standard Sale & Purchase Agreement, purchasers are required to make instalment payments of the purchase price, typically referred to as progress payments, as and when the developer completes the different stages of construction of the housing project. All instalment payments up to the issue of Temporary Occupation Permit are to be paid into the Project Account which the developer is required to maintain with a bank or financial institution.

Fast Facts:

Standard Payment Scheme refers to the payment schedule set out in the standard Sale & Purchase Agreement.

Deferred Payment Scheme is a payment scheme whereby developers allow purchasers to defer the due date for the progress payments under the standard payment scheme to a later date.

Besides the progress payments, other payments which a purchaser is required to make under the Sale & Purchase Agreement include property tax and maintenance charges.

On 26 Oct 2007, the Government withdrew the deferred payment scheme, i.e. applications from developers to offer deferred payment scheme for new housing projects will not be approved. However, developers who have already obtained the Controller’s approval to offer a deferred payment scheme may continue to offer it to purchasers after 26 Oct 2007. Purchasers are advised to check with the developers on the payment scheme being offered.

There are various combinations of deferred payment scheme, 2 examples of such schemes are as follows.

Other Payments
Besides the purchase price, there are other payments which a purchaser is required to make under the Sale & Purchase Agreement, such as the following:

  • All property tax levied in respect of the unit after the purchaser receives from the developer the Notice of Vacant Possession.
  • If the unit is in a strata-titled housing project, maintenance charges for the maintenance of the common property and the provision of cleaning and other services from the date the purchaser actually takes possession of the unit or the 15th day after the purchaser receives the Notice of Vacant Possession in respect of the unit, whichever is the earlier.

Keep updated with all the news!



We help people maximise their money through the provision of powerful tools and awesome content, by empowering them to make smarter financial decisions.