EC Deferred Payment Schedule
When you purchase a New Launch EC in Singapore, there are two payment schemes for you to choose, either the EC Deferred Payment Scheme or the EC Normal Progressive Payment Scheme. When you opt for the EC Deferred Payment Scheme, there is no housing loan repayment during the construction period. You only make instalment payments after you have gotten the Temporary Occupation Permit (TOP).
When it comes to buying a New Launch EC, the only option that EC buyers have is to apply for a bank loan. For a bank loan, EC buyers will need to prepare a bigger downpayment, which is at least 25% in cash or CPF OA savings (minimum cash outlay of 5%).
For EC Deferred Payment Scheme (75% Loan-to-Value), EC Buyers need to put down 20 per cent downpayment. The remaining 65 per cent is payable only when the developer issues the Notice of Temporary Occupation Permit (TOP). Or in simple terms, until the Executive condo is ready for occupation and you get to pick up your keys. The bank will disburse the 1st loan upon the calling of the payment, and EC buyers will then start the monthly housing loan repayment.
The key advantage of EC Buyers opt for the Deferred Payment Scheme is, they do not need to manage two housing loans concurrently. It offers those with existing loan repayment some flexibility in managing their finances. However, the New Launch EC purchase price on EC Deferred Payment Scheme is usually priced at 2 to 3% higher compared to the one on Normal Progressive Payment Scheme.
Another point to take note is, Mortgage Servicing Ratio (MSR) applies to EC purchase – The monthly housing loan repayments cannot exceed 30% of EC buyers’ incomes. This rule will affect the eligible bank loan amount for the EC buyers.
You may refer to the following table, to find out more about the Executive Condo (EC) Timeline (different stages, the percentage of the payment and the payment mode for each stage).
New Launch Executive Condo (EC) Timeline
|Stage||%||Description||When to Get Ready||Payment Mode|
|1st||5%||Booking & Obtaining Option To Purchase||Day 1||Cash|
|Payment of Resale Levy
|Buyer to engage solicitor (~ $3000)
Buyer to select the Mortgage Loan (Stamp fee ~$500)
Buyer to submit documents to HDB
|ASAP||Cash or CPF OA|
|Buyer’s Stamp Duty||Within two weeks upon signing S&P||Cash or CPF OA|
|15%||Downpayment||Within nine weeks from Date of Option||Cash or CPF OA|
|2nd||5%||Completion of Foundation Work
|Cash or CPF OA|
|Completion of Reinforced Concrete
|Completion of Brick Wall
|Completion of Ceiling / Roofing
|Completion of Doors & Windows Frames are in position, the Electrical Wiring & Plumbing & Internal Plastering
|Completion of Car Park, Roads and Drains
|Obtaining Temporary Occupation Permit (TOP)
|3rd||15%||Upon Production of the Certificate of Statutory Completion (CSC)
Frequently Asked Questions (FAQ)
- HDB loans are not applicable for New Launch EC purchase. When it comes to buying a New Launch EC, the only option that EC buyers have is to apply for a bank loan.
- For the New Launch EC purchase, the 25% downpayment, the minimum cash outlay is 5%. The remaining 20% can be paid by cash or from EC buyers’ CPF Ordinary Account (OA).
- For purchase of an Executive Condo that is still under construction, legal and stamp fees can be paid directly from EC buyers’ CPF Ordinary Account (OA).
- EC buyers can utilise their CPF Ordinary Account (OA) savings to service the monthly payments of the bank loan instalments.
- Upon the selling of the EC, you will need to return the CPF monies used back to your CPF Ordinary Account (OA), with the 2.5% interest rate.