A Deferred Payment Scheme is a payment scheme whereby developers allow purchasers to defer the due date for the progress payments under the standard payment scheme to a later date. The developer is required to seek the approval of the Controller of Housing before offering any form of deferred payment scheme to purchasers.
DPS basically allow buyers to defer the 80% payment till project TOP. There is no loan repayment during this period, unlike Progressive Payment Scheme. However, the purchase price for DPS is usually 2% – 4% higher. An example, a property price of $1m under Progressive Payment Scheme will cost $1.04m under Deferred Payment Scheme.
DPS also give 2nd timer the flexibility of managing their finances while they still need to service their existing HDB loan. The buyers just need to pay to pay 20% for the downpayment for the first 9 weeks, they do not need to manage 2 mortgage loans concurrently.
If you are an existing HDB owner and have been using your CPF to service your housing loan, your current CPF usage + accrued interest can be taken into consideration when computing the payment on whether you can use you current CPF OA for the initial 15% payment. You can check your available CPF fund and CPF usage + accrued interest under www.cpf.gov.sg.
Can I use my available CPF under OA for the initial down payment of 15%?
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