Most buyers misread the shape of the spending. Roughly 25% of the price, plus stamp duty, leaves your pocket in the first eight weeks. That is before a single brick is laid. After that the bank takes over. It releases your loan in slices as the building rises. Your monthly instalment starts at a few hundred dollars. It only reaches full size at legal completion, three to four years later.
What example are these numbers based on?
Every figure in this guide comes from one scenario, so the numbers add up as you read. Change the price and everything scales with it. Change the loan terms and the instalments move. The mechanics stay the same.
Worked example — assumptions
- Purchase price (3-bedroom new launch)$2,400,000
- Buyer profileNo existing housing loan, 0% ABSD
- Loan-to-Value (LTV)75% — $1,800,000 loan
- Loan tenure30 years
- Interest rate assumed1.6% p.a.
- Buyer's Stamp Duty (BSD)$89,600
- Legal fee (est.)$3,000
The 1.6% rate is an illustration. It matches floating packages available in mid-2026. The cheapest first-year packages we track start at 1.35%. Our current mortgage rates table shows what banks are quoting now. One warning: the bank works out how much it will lend you at a 4% test rate, whatever your package charges. Our TDSR guide explains why.
What do you pay in the first eight weeks?
This is the heavy phase, and all of it lands early. In our $2.4 million example it comes to $572,600. The sequence below follows the standard timeline in the Housing Developers Rules, the law that governs how developers may collect money for a building still under construction.
Option to Purchase (OTP) — 5% in cash
You book the unit and pay a 5% option fee. That is $120,000 here. This part is cash only. You cannot use CPF for the option fee on a new launch.
Sale & Purchase Agreement delivered
The developer's solicitors deliver the S&P Agreement, usually within 14 days of the OTP.
Exercise the S&P Agreement
You sign and return the agreement. From this point the purchase is legally binding on both sides.
Buyer's Stamp Duty — $89,600
Buyer's Stamp Duty is the tax on buying property. It is due within 14 days of signing. On $2.4 million the tiered sum comes to $89,600, or roughly 3.7% of the price. On a unit still being built you pay it in cash first, then claim it back from CPF. Any Additional Buyer's Stamp Duty falls due at the same time. Legal fees of about $3,000 usually land in the same window. Our stamp duty calculator works out both taxes tier by tier.
Balance downpayment — 15%
The rest of the 25% downpayment falls due: $360,000. You may pay it from your CPF Ordinary Account, in cash, or with a mix of both. That completes the sale stage.
Add it up: $120,000 cash, plus $360,000 from CPF or cash, plus $89,600 of stamp duty, plus $3,000 of legal fees. That is $572,600 inside two months. This, not the monthly instalment, is the real test of whether you can afford a new launch.
When does the bank loan start paying?
From the foundation stage on, each payment is triggered when the developer certifies that a building milestone is done. At 75% Loan-to-Value, your last 5% of own money goes in at the foundation stage. Everything after that comes from the bank. Each release lifts your monthly instalment another step.
| Stage | Indicative timing | % | Amount | Your outlay (cash/CPF) | Loan disbursed | Instalment after stage |
|---|---|---|---|---|---|---|
| Option fee (OTP) | Day 0 | 5% | $120,000 | $120,000 cash | — | — |
| Balance downpayment | 8 wks from OTP | 15% | $360,000 | $360,000 | — | — |
| Foundation | 6–9 mths | 10% | $240,000 | $120,000 | $120,000 | $420 |
| Reinforced concrete framework | +6–9 mths | 10% | $240,000 | — | $240,000 | $1,260 |
| Partition walls | +3–6 mths | 5% | $120,000 | — | $120,000 | $1,680 |
| Roofing / ceiling | +3–6 mths | 5% | $120,000 | — | $120,000 | $2,100 |
| Doors, windows & plumbing | +3–6 mths | 5% | $120,000 | — | $120,000 | $2,520 |
| Car park, roads & drains | +3–6 mths | 5% | $120,000 | — | $120,000 | $2,939 |
| TOP — keys collected | +9–12 mths | 25% | $600,000 | — | $600,000 | $5,039 |
| CSC — legal completion | +12 mths | 15% | $360,000 | — | $360,000 | $6,299 |
Two things in this table matter. First, the instalment climbs slowly. For most of the build you pay between $420 and about $2,939 a month. That is real breathing room if you are renting meanwhile, or still paying for another home. Second, the big jumps come late. Keys collection alone releases 25% of the price. It lifts the instalment from about $2,939 to $5,039 overnight. Legal completion then takes it to the full $6,299. Budget for that final figure, not the quiet middle years.
How much must be cash, and how much can be CPF?
Total outlay before full loan takeover — $2.4M example
- Option fee — cash only$120,000
- Balance downpayment — CPF OA / cash$360,000
- Foundation stage top-up — CPF OA / cash$120,000
- Buyer's Stamp Duty$89,600
- Legal fee (est.)$3,000
- Total buyer outlay$692,600
- Financed by loan thereafter$1,800,000
Plan around the $692,600 total. That is about 28.9% of the purchase price. Only the $120,000 option fee has to be cash. The rest can come from your CPF Ordinary Account, within CPF limits. Even buyers who use every dollar of CPF still need real cash. You need it for the option fee, for legal costs, for a renovation deposit, and for any months where the instalment overlaps with rent.
What happens at TOP and CSC?
TOP stands for Temporary Occupation Permit. It is the milestone buyers celebrate. You collect keys, check the unit for defects, and can start renovating. It is also the steepest financial step, releasing 25% of the price. CSC stands for Certificate of Statutory Completion. It usually follows about 12 months later, when the last 15% is paid and the project is legally finished. From CSC your instalment sits at its full, permanent level.
So what should you budget for?
Treat this as three separate budget tests. One: have $50,000 of cash per million ready before booking day, with stamp duty and legal fees close behind. Two: have 25% of the price in cash and CPF within eight weeks. Three: check your household budget against the final instalment, not the quiet construction-phase figure. It roughly doubles between mid-build and legal completion, and it is worth testing at the 4% rate the bank uses rather than the rate you pay. Buyers who clear all three rarely get caught out. Buyers who anchor on the $420 foundation instalment often do.
Still weighing up whether a new launch is right at all? Our new launch versus resale guide sets both routes side by side at the same budget, over four years.
Upgrading from an HDB flat? The timing questions matter most there. When to sell, where the money goes, what budget it unlocks. Our companion guide covers them: Selling your HDB to buy a new launch.
The short version
What to remember
- Cash needed on booking day, per $1M of price$50,000, no CPF allowed
- Total due in the first eight weeks ($2.4M unit)$572,600
- Total from your own pocket before the loan takes over$692,600, or 28.9%
- Cost of walking away after booking1.25% of the price, $30,000 here
- First instalment, at the foundation stageAbout $420 a month
- Instalment once fully drawn, at legal completion$6,299 a month
- Time from booking to legal completionRoughly 3 to 4 years
So what should you do with this? Work backwards from the eight-week number, not the monthly one. Check that you can put $572,600 together on a $2.4 million unit, with $120,000 of it in cash, then check that your household can carry $6,299 a month once the loan is fully drawn. If both hold, the quiet middle years take care of themselves. Our progressive payment calculator runs this schedule on your own price and rate, and the affordability calculator tells you the ceiling your income supports.
Frequently asked questions
What is the progressive payment scheme?
It is the standard way you pay for a home still being built, set out in the Housing Developers Rules. You pay in stages tied to building milestones, not all at once. The stages are 5% on booking, 15% at sale completion, 5% to 10% at each of six construction stages, 25% when keys are ready, and 15% at legal completion.
How much cash do I need upfront?
The 5% option fee must be cash. The next 15%, the stamp duty and the stage payments can generally come from your CPF Ordinary Account. On a $2.4 million unit, expect about $572,600 in the first eight weeks. Of that, $120,000 has to be cash.
When do monthly instalments start?
They start when the bank first releases money, usually at the foundation stage, 6 to 9 months in. They begin small, about $420 in our example. They then step up at every milestone until the loan is fully drawn at legal completion.
What if I book a unit and then change my mind?
The developer keeps 1.25% of the purchase price and returns the other 3.75% of your option fee. On $2.4 million, that costs you $30,000.
Can I use CPF for a new launch?
Yes, for everything except the 5% option fee, within CPF usage limits. That covers the rest of the downpayment, the stamp duty (paid in cash first, then reimbursed), any stage payments the loan does not cover, and your monthly instalments.
When is stamp duty due, and where does $89,600 come from?
It is due within 14 days of signing the sale agreement. The tiers are 1% on the first $180,000, 2% on the next $180,000, 3% on the next $640,000, 4% on the next $500,000, 5% on the next $1.5 million and 6% above $3 million. On $2.4 million that is $1,800 + $3,600 + $19,200 + $20,000 + $45,000, which comes to $89,600.
What is the difference between TOP and CSC?
TOP is when you collect keys and can move in. 25% of the price falls due then. CSC is final legal completion, roughly a year later. The last 15% is paid then, and your loan is fully drawn.
Will I pay rent and instalments at the same time?
Yes, if you sell your current home first and rent while you wait for keys. The stage structure keeps that overlap manageable, though. In our example the instalment stays below about $3,000 for most of the build.
Do I pay Additional Buyer's Stamp Duty on a new launch?
That depends on your residency and how many homes you already own. It has nothing to do with the property being a new launch. A Singapore citizen with no other home pays 0%. Owning another home triggers the tax. Married couples with at least one citizen can claim it back if they sell their first home within the allowed window.
Update history
- Plain-English rewrite for first-read clarity. Added a "short version" summary and links to the progressive payment and stamp duty calculators. No figures, stages or rules changed.
- Guide published. Worked example at $2,400,000, 75% LTV, 30-year tenure, 1.6% p.a. illustrative rate; BSD computed under prevailing tiered rates.
Methodology & sources. Stage percentages and sequencing follow the standard progressive payment scheme under the Housing Developers (Control & Licensing) Act and Housing Developers Rules. Stamp duty computed from IRAS published BSD rates. Instalment estimates computed on cumulative disbursed loan amounts at the stated illustrative rate.
Disclaimer. Figures are illustrative estimates for education, not financial, legal or property advice. Actual timelines vary by project and construction method; actual costs depend on your loan package, CPF position and tax profile. Verify against your S&P Agreement, IRAS and your bank, and seek professional advice for your own situation.
Talk it through with an advisor
Our research tells you what the data says. If you want to work through what it means for your own situation — budget, ABSD position, timing an HDB sale, or comparing launches against resale options — you can request a one-to-one consultation.
- No obligation. The first conversation is about your goals.
- Affordability and stamp duty worked out on your actual numbers.
- Launch and tender alerts for the projects you shortlist.
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