1. What Is the Deferred Payment Scheme (DPS)?
Under Deferred Payment Scheme, you postpone the bulk of your payment and loan drawdown until the project is nearly complete. You do not need to make bank loan repayments during construction. You only start paying the loan after you get your Temporary Occupation Permit (TOP).
After you pay the initial 5% booking fee in cash, you will pay another 15% of your down payment. This payment is due when you sign the Sale & Purchase (S&P) Agreement. You must sign this agreement within 8 weeks after you exercise your Option to Purchase.
If you want to use CPF money for this 15% payment, you must first get financing from a bank. Only then can your CPF application be considered.
2. DPS Payment Schedule for ECs
| Stage | PPS (% of Purchase Price) | DPS (% of Purchase Price) | When to Pay |
| Option to Purchase (OTP) | 5% | 5% | Day 1 (OTP) |
| Sale & Purchase Agreement (S&P) | 15% | 15% | Within 8–9 weeks of OTP |
| Construction Milestones (Foundation, RC, etc.) | 40% (in stages of 10%, 10%,5%,5%,5%,5%) | — | N/A (deferred) |
| Temporary Occupation Permit (TOP) | 25% | 65% | Upon TOP issuance |
| Certificate of Statutory Completion (CSC) | 15% | 15% | Upon CSC |
| Total | 100% | 100% |
- DPS buyers pay only 20% upfront (OTP + S&P). They split the remaining 80% into 65% at TOP and 15% at CSC.
- Under PPS, you pay 40% progressively throughout construction, then 25% at TOP and 15% at CSC.
3. Why Choose Deferred Payment Scheme?
Cash‑Flow Flexibility
- No simultaneous mortgages: If you have an existing home loan, DPS allows you to delay the new EC loan. This way, you won’t have to manage two mortgage payments at the same time.
Simplified Financing
- Single large payment: Your bank loan (up to 75% LTV) is given in 2 parts at TOP and CSC. This can make it easier to manage your debt and calculate interest.
4. Drawbacks of Deferred Payment Scheme
Higher Sticker Price
- Developers typically price DPS units 2–3% above the PPS price to cover their financing costs during construction.
Larger Cash Outlay at TOP
- You need to prepare a 65% lump sum (though this can include CPF) when TOP arrives, which may strain your cash or CPF liquidity.
5. How to Decide
| Consideration | DPS | PPS |
| Existing Mortgage Obligations | Ideal—defer new loan until TOP | May struggle to service two loans simultaneously |
| Cash/CPF Liquidity at TOP | Must have or plan for a 65% payment | Smaller TOP payment (25%) but ongoing payouts |
| Tolerance for Higher Purchase Price | Accept 2–3% premium for flexibility | Benefit from lower PPS price |
| Preference for Staggered Payments | No—it’s all or nothing at TOP/CSC | Yes—small, predictable instalments through build |
Bottom Line
If you need maximum cash‑flow flexibility during construction (e.g., you’re still servicing another mortgage), DPS can be a lifesaver—but be ready for a higher overall price and a hefty payment at TOP. Otherwise, the Progressive Payment Scheme (PPS) lets you smooth out your cash outlay across the construction period and pay a lower launch price.
Ready to choose? Let me know if you’d like help comparing loan packages or estimating your CPF/cash requirements under either scheme! Speak to IQrate Mortgage Specialist should you require any financing assistance.