✔️ Deferred Payment Scheme available
Last but not least, a benefit which makes you never thought that you could afford a new EC launch.
There are two types of payment schemes available to prospective EC purchasers:
- Normal Payment Scheme (NPS); and
- Deferred Payment Scheme (DPS)
Under the NPS, buyers make installment payments on the property each time the developer hits certain pre-set milestones in its construction – kind of like a reward system. This is the same as if you are buying into a private condo. So, with NPS you got to prepare your 25% downpayment plus buyer stamp duty soon.
Whereas the DPS, allows buyers to push back the timing of the payments. Instead of making small payments every few months, DPS buyers need only pay a 20% downpayment plus buyer stamp duty while the remaining 80% is paid once the project is completed (TOP about 3 years after).
While the DPS may seem the obvious choice, it usually comes with a higher price tag of about 3% as compared to buying under the NPS. But if you are short of the downpayment, DPS is an open door for you only for the new EC launch.
At the same time, if you are still paying for other housing loans, it would be a heavy burden for you to serve both. Therefore, it wouldn’t be a bad choice even though paying for the additional 3%.