{"id":25387,"date":"2019-04-25T11:50:05","date_gmt":"2019-04-25T03:50:05","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=25387"},"modified":"2026-05-13T19:06:06","modified_gmt":"2026-05-13T11:06:06","slug":"property-jargon-of-the-day-deferred-payment-scheme","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/property-jargon-of-the-day-deferred-payment-scheme\/","title":{"rendered":"Deferred Payment Scheme (DPS)"},"content":{"rendered":"
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Every day at 99.co, we pick a piece of property jargon to demystify for you. Today, we look at the Deferred Payment Scheme<\/strong> (DPS), which is usually offered as an option for purchasing Executive Condos (ECs), and some private condominiums may offer it to boost sales.<\/p>\n\n\n\n

\n \n Note: DPS will be removed for all future EC launches under the 1H2026 Government Land Sales (GLS) programme onwards. See your last chance to buy an EC with DPS\n \n here.\n<\/a>\n <\/strong><\/em>\n<\/p>\n\n\n\n

Deferred Payment Scheme (DPS)<\/h2>\n\n\n\n

If you compare the different asset classes right now, stocks are a racecar, bonds are a used Toyota, and property is a sloth with a sad story about its double amputation. Despite the best efforts of developers, units are not moving quickly enough. Enter the DPS, which is here to solve today’s problems (by making them tomorrow’s<\/em>).<\/p>\n\n\n\n

DPS means a buyer forks out an initial down payment (20% of the purchase price), and pays nothing for the next 24 months. Yes, there’s no need for any home loan repayment, stamp duties, and so forth. After the 24 months, the buyers then fork out the remaining 80%.<\/p>\n\n\n\n

In contrast, buyers have to fork out the full sum within eight to 10 weeks for standard purchases of completed properties.<\/p>\n\n\n

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\"Property
DPS is when you fork out an initial downpayment, without having to pay anything for the next two years.<\/figcaption><\/figure><\/div>\n\n\n

It works something like this:<\/p>\n\n\n\n

    \n
  1. Secure the OTP<\/a> (5% of the purchase price)<\/li>\n\n\n\n
  2. Within eight weeks, exercise the OTP and sign the Sale & Purchase Agreement<\/a> (15% of the purchase price)<\/li>\n\n\n\n
  3. Pay nothing for the next 2-3 years, depending on the developer<\/li>\n\n\n\n
  4. Pay the remaining 80% after 2-3 years<\/li>\n<\/ol>\n\n\n\n

    Note that only completed properties<\/strong> (i.e. those that have received their Temporary Occupancy Permit<\/a> (TOP) or Certificate of Statutory Completion) can be sold under DPS<\/strong>.<\/p>\n\n\n\n

    For the sake of comparison, here’s how a typical property purchase would work:<\/p>\n\n\n\n

      \n
    1. Secure the OTP (5% of the purchase price)<\/li>\n\n\n\n
    2. Within 14 days, exercise the OTP and sign the Sale & Purchase Agreement (20% of the purchase price)<\/li>\n\n\n\n
    3. Within 14 days of completing the purchase, fork out the money for stamp duties such as the BSD<\/a> and ABSD<\/a><\/li>\n\n\n\n
    4. The bank loan then covers up to 75% (assuming you get the full LTV<\/a>)<\/li>\n\n\n\n
    5. Start making the monthly loan repayments until the end of the loan tenure<\/li>\n<\/ol>\n\n\n\n

      Why would buyers want a DPS?<\/strong><\/h2>\n\n\n\n

      A DPS helps you in the following ways:<\/p>\n\n\n\n