What is Normal Payment Scheme?
This is the Normal Payment Scheme (NPS), and commonly also known as Progressive Payment Scheme, allows buyers to service their loan via monthly installments progressively stage by stage during the construction of the new launch project.
How does this NPS work?
Broadly speaking, the NPS enables buyers to pay for a property progressively in accordance to the stage of construction. In this scheme, should the construction gets delayed, the payment deadlines of the respective stage(s) will also rescheduled accordingly.
When is Payment Due?
As soon as a particular stage of construction is completed, the developers will send a notice to the buyer’s law firm to notify them know that the buyers need to make the progress payment for that stage. Depending on their financing arrangements, the buyers will make the required payment in cash/cpf, or via their bank loan.
When must Payment be Paid?
The requested payment will have to reach the developer within 14 days of receipt of the notice from the developer, failing which late payment charges will apply.
How much is Payment?
Do keep in mind that developers would request for payment for more than one stage of construction at the same time. In this instance, the buyers will be required to make more than one stage of progressive payments.
In addition, if the buyers opt to buy a property that has already begun construction, the buyer would be required to pay the respective stages of progressive payments at once upon signing the sales and purchase agreement.
|Stage||Payment Under NPS (% of Purchase Price)|
|Upon the grant of Option to Purchase||5% (Booking Fee)|
|Upon signing of the Sale & Purchase Agreement or within 8 weeks from the Option date||20% Less Booking Fee|
|Completion of foundation work||10%|
|Completion of reinforced concrete framework of unit||10%|
|Completion of partition walls of unit||5%|
|Completion of roofing/ceiling of unit||5%|
|Completion of door sub-frames/ door frames, window frames, electrical wiring, internal plastering and plumbing of unit||5%|
|Completion of car park, roads and drains serving the housing project||5%|
|Notice of Vacant Possession (TOP)||5%|
|On Completion Date||5%|