New Launch Condo Payment Schedule: A Worked $1.8m Calculation

A new launch condo payment schedule spreads the purchase price across construction, but it does not reduce the price or the eventual mortgage. Buyers need enough cash and CPF for the first 25%, stamp duties and fees, then enough income for a loan that grows each time the developer completes a milestone.

We use a $1.8 million Singapore condo to calculate the initial funds, progressive loan and full monthly payment. Replace each assumption with your bank’s approval and your lawyer’s completion statement before buying.

Set the loan assumptions before calculating payments

The worked example assumes:

• one Singapore Citizen buying a first residential property
• no outstanding housing loan
• purchase price and bank valuation of $1.8 million
• a 75% bank loan of $1.35 million
• a 30-year tenure that does not extend past age 65
• enough CPF Ordinary Account (OA) savings to use where permitted
• no Additional Buyer’s Stamp Duty (ABSD)

The 75% Loan-to-Value (LTV) limit is a ceiling, not an approval. A bank applies its credit assessment and the Total Debt Servicing Ratio (TDSR), which limits total monthly debt payments to 55% of gross monthly income. Banks assess residential loans using the higher of a 4% interest-rate floor or the applicable rate after any promotional period.

An existing housing loan changes the calculation. Under the property loan limits announced by the Government, the maximum LTV can fall to 45% with one outstanding housing loan and 35% with two or more. A tenure above 30 years, or one extending past age 65, reduces these limits further.

Get an In-Principle Approval before selecting a unit. Our TDSR and MSR guide explains how the bank turns income, debt and tenure into a loan ceiling.

Calculate the first 25% and stamp duty

A bank loan covering 75% leaves a 25% downpayment. CPF Board requires at least 5% of the lower of price or valuation in cash for a private property. Eligible CPF OA savings or cash can fund the remaining 20%, subject to CPF housing rules.

For the $1.8 million example:

Item	Calculation	Amount
Minimum cash downpayment	$1,800,000 × 5%	$90,000
Remaining downpayment, cash or CPF	$1,800,000 × 20%	$360,000
Total 25% downpayment	$1,800,000 × 25%	$450,000
Maximum 75% loan	$1,800,000 × 75%	$1,350,000

The first 5%, or $90,000, is the cash booking fee. The next 15%, or $270,000, brings the paid amount to 20% within eight weeks of the Option date. At the foundation stage, the buyer funds another 5%, or $90,000, before the loan covers the rest of the price.

Buyer’s Stamp Duty (BSD) sits outside the 25%:

Price band	Rate	Duty
First $180,000	1%	$1,800
Next $180,000	2%	$3,600
Next $640,000	3%	$19,200
Next $500,000	4%	$20,000
Remaining $300,000	5%	$15,000
Total BSD		$59,600

The buyer therefore needs $509,600 in cash and usable CPF for the downpayment and BSD, before legal costs and reserves. At least $90,000 must be cash under the assumptions. Timing can increase the cash needed because CPF cannot pay a booking fee and may not reach the lawyer by each deadline.

Check the current amount with the IRAS stamp duty calculator and ask the conveyancing lawyer when CPF can be released.

Add ABSD as an upfront amount

ABSD depends on citizenship, property count and all joint buyers. It applies to the higher of price or market value.

A Singapore Citizen buying the $1.8 million condo as a second residential property pays 20%, or $360,000. That lifts the calculated downpayment and stamp duties from $509,600 to $869,600, before legal costs. A possible refund after selling the first home does not fund an amount due at purchase.

Our ABSD remission guide covers the joint-purchase rules and six-month sale deadlines. Use the general ABSD guide if the purchase involves a Permanent Resident, foreigner or mixed-citizenship couple.

Apply the prescribed progressive payment schedule

The standard contract under the Housing Developers Rules ties each instalment to a certified construction stage. Your Sale and Purchase Agreement controls the legal demand, including how the last 15% goes to the developer and the Singapore Academy of Law as stakeholder.

Stage	Payment	Amount on $1.8m	Cumulative paid
Booking fee	5%	$90,000	5%
Balance to the 20% mark	15%	$270,000	20%
Foundation	10%	$180,000	30%
Reinforced concrete framework	10%	$180,000	40%
Partition walls	5%	$90,000	45%
Roofing or ceiling	5%	$90,000	50%
Door/window frames, wiring, plastering and plumbing	5%	$90,000	55%
Car park, roads and drains	5%	$90,000	60%
TOP and prescribed completion notices	25%	$450,000	85%
Final completion provisions	15%	$270,000	100%

Temporary Occupation Permit (TOP) lets buyers occupy the development. The last 15% has stakeholder and completion mechanics, so treat the table as a cash-flow model and let your lawyer calendar the contractual notices.

The developer can complete milestones faster or slower than a sales estimate. Keep the next equity payment liquid rather than assuming a fixed month. The new launch buying process covers the legal sequence from booking to keys.

Model the loan balance and monthly payment at every stage

The buyer contributes the first 25% in this illustration. The bank starts disbursing during the foundation demand and releases the remaining loan as the developer certifies later work.

The monthly figures below use a standard amortising-loan formula at 4% over 30 years. They hold the tenure constant to show the effect of each tranche. Your bank will use the package rate, remaining tenure and its own repayment method, so its notices will differ.

Stage after payment	Loan disbursed at stage	Cumulative loan	Illustrative monthly payment
Foundation	$90,000	$90,000	$430
Concrete framework	$180,000	$270,000	$1,289
Partition walls	$90,000	$360,000	$1,719
Roofing or ceiling	$90,000	$450,000	$2,148
Frames and services	$90,000	$540,000	$2,578
Car park, roads and drains	$90,000	$630,000	$3,008
TOP	$450,000	$1,080,000	$5,156
Final tranche	$270,000	$1,350,000	$6,445

The TOP demand creates the largest jump: about $2,148 a month in this model, before maintenance fees, property tax and insurance. Budget against the $6,445 full-loan payment from booking day. The lower payments during construction are temporary.

At $6,445 a month and no other debt, the 55% TDSR boundary implies gross monthly income of about $11,719. A car instalment or another mortgage adds to the numerator, while the bank may accept only part of variable income. Passing this regulatory test does not prove that the household can live with the payment.

Stress-test the completed-home budget

Run the full $1.35 million loan at several rates and keep the 30-year tenure constant:

Interest rate	Approximate monthly payment
3%	$5,692
4%	$6,445
5%	$7,247

These figures exclude condo maintenance, property tax, insurance, repairs and renovation. TOP also starts the six-month ABSD sale clock for eligible upgraders who bought the condo before completion. A household may face a higher mortgage, key collection costs and an existing-home sale at the same time.

Keep a cash reserve after the final downpayment. CPF OA savings can service the mortgage, but using the full balance removes a buffer and increases the CPF principal plus accrued interest that must return to the account on sale. Our CPF property guide explains those limits and refunds.

Build your own new launch calculation

Use five lines for a first pass:

1. Maximum loan: lower of the bank-approved amount and applicable LTV percentage multiplied by the lower of price or valuation.
2. Downpayment: purchase price minus loan, split into mandatory cash and eligible cash/CPF.
3. Duties: current BSD plus ABSD based on the highest joint-buyer profile.
4. Completion reserve: quoted legal costs, renovation, moving costs and a cash buffer.
5. Full monthly cost: completed-loan payment plus maintenance, tax, insurance and household commitments.

Then map the money to dates. An asset that arrives after a demand cannot pay that demand. This catches the common upgrader problem: enough net sale proceeds on paper, but no access to them when the developer calls the next instalment.

Choose the unit price that works under the full payment and a higher rate, not the gentle mortgage shown during construction. A current In-Principle Approval, CPF plan and stage-by-stage cash ledger should exist before the 5% booking fee leaves your account.

Sources: Singapore Statutes Online, Housing Developers Rules, CPF Board, private-property downpayment rules, IRAS, Buyer’s Stamp Duty, Ministry of Finance, TDSR and property loan measures.