What is the Deferred Payment Scheme (DPS)?
A Deferred Payment Scheme refers to a payment arrangement offered by many developer where the buyer forks out only a certain percentage (usually 20% to of the purchase price) as a down payment and reserves the unit.
After the initial payment, the next payment is deferred. Depending on the developer’s rules, the next payment may come two or more years later. There is no need to pay anything for a specified period of time (typically the next two or three years). This means the Executive Condo buyer could pay the downpayment and then have some time to save up for the remaining payment.
Here’s how a deferred payment for a condo works:
- You pay to secure the Option to Purchase (5% of the purchase price);
- Exercise the OTP and sign the S&P Agreement (15% of the purchase price) within eight weeks;
- Pay nothing – no home loan instalment, no property stamp duties and so forth – till your unit TOP
So, instead of the usual 25% downpayment, your initial outlay is much lower.
ABSD For HDB Upgraders?
HDB upgraders buying a new EC unit do not need to fork out the large ABSD payment upfront, they could also live in their existing flat and are required to sell their flat six months after their new EC receives TOP
HDB CPF Housing Grant?
Under the CPF Housing Grant Scheme, you may be eligible to receive a housing subsidy of up to $30,000 when you buy an Executive Condominium (EC) unit from a property developer.
Executive Condo (EC) Eligibility Conditions
| Family Nucleus | You will need to qualify for the EC under one of these eligibility schemes: – Public Scheme – Fiancé/Fiancée Scheme – Orphans Scheme – Joint Singles Scheme |
| Citizenship | – You must be a Singapore Citizen – At least 1 other applicant must be a Singapore Citizen or Singapore Permanent Resident – All singles must be Singapore Citizens if applying under the Joint Singles Scheme |
| Age | – At least 21 years old – At least 35 years old, if applying under the Joint Singles Scheme |
| Income Ceiling | Your household income must not exceed the $16,000 income ceiling. |
| Property Ownership | – You do not own other property overseas or locally, or have not disposed of any within the last 30 months – You have not bought a new HDB/ DBSS flat or EC, or received a CPF Housing Grant before; or, have only bought 1 of these properties/ received 1 CPF Housing Grant thus far -You must meet the MOP period for your current HDB |
Income Ceiling For EC Buyers
Your average gross monthly household income must not exceed $16,000.