New Launch EC Deferred Payment Scheme

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).