How is a new launch loan different from a resale loan?

A resale loan disburses in full on completion, so you pay one level instalment from day one. A new launch is funded under the Progressive Payment Scheme: 5% on booking, 15% on exercising the S&P, then staged calls as the building goes up. Where CSC comes before legal completion (the usual order), the last 15% is 13% at CSC and 2% on legal completion. Your own funds are used first; the bank then disburses stage by stage, so interest is charged only on the amount drawn.

Why does the monthly instalment increase during construction?

Because the bank only charges interest on what it has actually disbursed. Early on little or nothing is drawn, so the payment is small; each stage adds to the outstanding balance and the bank re-amortises it over the remaining tenure. In the usual order the final draws are 13% at CSC and 2% on legal completion, after which you are paying the full peak instalment.

How much interest do I pay while the project is still being built?

Far less than on a comparable resale loan, because the balance builds up gradually rather than starting at the full amount. The schedule isolates the interest accrued from the first disbursement until the loan is fully drawn. For modelling only, the unknown legal-completion draw is grouped into the CSC planning month; it is not a forecast completion date.

When does the loan tenure clock start?

From the first disbursement, not from the date you book the unit. The maturity date is fixed at that point, so each later drawdown is amortised over the remaining tenure to still finish on time — which is exactly why the instalment ramps up. This schedule counts its months from first disbursement for the same reason.

Amortisation Table · New Launch

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The instalment that climbs as your launch is built

A new-launch loan draws down by construction stage, so your monthly payment ramps up to its peak — then amortises down. The full schedule, stage by stage and month by month.

The purchase

Purchase price

Loan-to-value (LTV)

Up to 75% for a first private home loan; lower if you have other home loans.Interest rate

Your package rate. Bank loans reprice — rerun this when yours does.Loan tenure

yrs

Up to 35 years.

Planning the cash side too?

The New Launch Payment Plan maps each stage's cash, CPF and loan split with the timeline dates.

Open the payment plan

Enter the purchase price to build the schedule.

How the schedule is computed

The Progressive Payment Scheme fixes the stage percentages under the Housing Developers Rules: 5% on booking, 15% on exercising the S&P, then 10% at foundation, 10% at reinforced concrete, 5% each for partition walls, ceiling, doors/windows/wiring and car park/roads/drains and 25% at TOP. Where CSC is issued before legal completion (the usual order), the final 15% is split: 13% at CSC (8% to the developer and 5% held by the Singapore Academy of Law as stakeholder), then 2% on legal completion. Your downpayment (price minus loan, with the 5% booking always in cash) is consumed first; the bank then disburses the loan against the later stages.

Interest accrues only on the drawn balance with monthly rests. At each drawdown the new balance is re-amortised over the remaining tenure so the loan still clears at maturity — which is what makes the instalment step up stage by stage and peak once it is fully drawn. From there it behaves like a normal reducing-balance loan. For the cash, CPF and timeline side of the same purchase, use the New Launch Payment Plan; for the lump-sum resale equivalent, see the resale amortisation table.

Stage timings are industry-typical estimates from OTP. Legal completion depends on the Notice to Complete, so the table labels it “After CSC” and groups its 2% draw into the CSC planning month for amortisation only. This is not a forecast completion date.

Frequently asked questions

How is a new launch loan different from a resale loan?: A resale loan disburses in full on completion, so you pay one level instalment from day one. A new launch is funded under the Progressive Payment Scheme: 5% on booking, 15% on exercising the S&P, then staged calls as the building goes up. Where CSC comes before legal completion (the usual order), the last 15% is 13% at CSC and 2% on legal completion. Your own funds are used first; the bank then disburses stage by stage, so interest is charged only on the amount drawn.
Why does the monthly instalment increase during construction?: Because the bank only charges interest on what it has actually disbursed. Early on little or nothing is drawn, so the payment is small; each stage adds to the outstanding balance and the bank re-amortises it over the remaining tenure. In the usual order the final draws are 13% at CSC and 2% on legal completion, after which you are paying the full peak instalment.
How much interest do I pay while the project is still being built?: Far less than on a comparable resale loan, because the balance builds up gradually rather than starting at the full amount. The schedule isolates the interest accrued from the first disbursement until the loan is fully drawn. For modelling only, the unknown legal-completion draw is grouped into the CSC planning month; it is not a forecast completion date.
When does the loan tenure clock start?: From the first disbursement, not from the date you book the unit. The maturity date is fixed at that point, so each later drawdown is amortised over the remaining tenure to still finish on time — which is exactly why the instalment ramps up. This schedule counts its months from first disbursement for the same reason.

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Disclaimer

The tools on this page provide estimates for general reference only and do not constitute financial, legal, tax, or investment advice. Calculations are based on prevailing MAS, IRAS, HDB, and CPF rules and rates at the time of publication, which may change without notice. Actual figures — including loan eligibility, interest rates, stamp duties, and CPF usage — depend on your specific circumstances and the final assessment of banks, IRAS, and other relevant authorities. TRIBE makes no warranty as to the accuracy or completeness of any output and accepts no liability for decisions made in reliance on these tools. Please verify all figures with the relevant institutions or a qualified professional before committing to any transaction.