Deferred Payment Scheme (DPS) for New Launch EC

The EC Deferred Payment Scheme was introduced in 2018 to help buyers manage their finances while fulfilling the eligibility criteria for ECs.

How does a deferred payment scheme work for EC?

It is essentially a financial arrangement tailored to the needs of potential EC buyers. The DPS is a beacon of hope , particularly for HDB homeowners waiting the proceeds from their flats. Instead of being held back by immediate cash requirements, the DPS offers a breather, allowing buyers to commit to an EC while managing their cash flow more comfortably.

DPS allows buyers to manage their finances better as they do not have to pay the total amount upfront.

Are there any restrictions on the purchase of EC financed with DPS?

There are no restrictions. However, the buyers need to ensure they have he financial means to pay the remaining 80% of the purchase price at the end of the deferred period.

Process for purchasing EC using DPS

The process for purchasing an EC using DPS is similar to that of using Normal Payment Scheme (NPS).

Buyers pay a booking fee and submit an OTP to the developer. Once the OTP is granted, the buyer must pay the initial 20% down payment - a composition of 5% in cash and the flexibility to use either 15% cash or CPF for the remainder.

Understanding the EC Deferred Payment Scheme

DPS changes the loan repayment scheme as the full payment is deferred.

As mentioned above, with the 20% down payment ( composition of 5% in cash and 15% in cash or CPF ) , the pivotal advantage comes next as the remaining 65% payment will be deferred till the Notice of Temporary Occupation Permit ( TOP ) issuance. This means, this delay of payment will last until the new EC home is ready to collect the key, and the last 15% payment of the new EC is payable upon the new EC obtaining the Certificate of Statutory Completion ( CSC ).

For potential EC homeowners, the EC Deferred Payment Scheme is increasingly getting popular as it is becoming particularly enticing for current HDB Flat owners or upgraders who have yet to sell their HDB flats. Choosing the deferred scheme means they are relieved of the burden of managing two simultaneous mortgage loans. The DPS is a game changer as it offers the buyers a breather , a reprieve from loan repayments during the EC construction phase.

Stages of EC Deferred Payment Scheme

Stage of Construction Completion % of Purchase Price

1. Booking of Unit 5% Cash

2. Upon signing S&P Agreement or within 8 weeks from date of Option 15% Cash or CPF

3. Completion of foundation work

4. Completion of reinforced concrete framework -

5. Completion of partition walls -

6. Completion of roofing -

7. Completion of door frames, window frames, electricity -

wiring, internal plastering and plumbing work

8. Completion of car park , drains and roads serving the -

housing project

9. Obtained Temporary Occupation Permit ( TOP ) 5% Cash or CPF

60% Cash or CPF or Loan

10. Obtained Certificate of Statutory Completion 15% Cash or CPF or Loan

( CSC )

Below is an explanation of the payment breakdown and monthly instalment at each completion stage for EC Deferred Payment Scheme.

In Summary, the EC Deferred Payment Scheme ( DPS ) offers a unique opportunity for potential buyers in Singapore to navigate the property landscape with greater financial flexibility. Primarily to cater to HDB Flat owners awaiting sales and first-time buyers seeking varied payment options. The DPS make purchasing an EC more manageable and less financially strenuous especially for first-time home buyers or those who need more time to secure financing.