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The Two New Launch Payment Schemes in Singapore
When you purchase an uncompleted private condo in Singapore, you choose between two payment structures:
- IAS (Interest Absorption Scheme): You pay the progressive payments (as construction milestones are hit) but the developer “absorbs” the interest on your bank loan during the construction period. You only begin paying full mortgage instalments after the project receives TOP (Temporary Occupation Permit)
- NPS (Normal Payment Scheme): You pay progressive payments AND service the loan interest yourself during construction. The developer typically sells NPS units at a lower price (2–3% discount) to compensate for this additional burden
How Progressive Payments Work Under Both Schemes
Under both IAS and NPS, the purchase price is paid in stages as construction milestones are reached. The standard milestones and payment percentages:
| Construction Milestone | % of Purchase Price |
|---|---|
| On booking (OTP) | 5% |
| On S&P signing (8 weeks) | 15% |
| Foundation complete | 10% |
| Reinforced concrete framework | 10% |
| Partition walls | 5% |
| Ceiling and flooring | 5% |
| Windows, electrical, sanitary | 5% |
| Certificate of Statutory Completion (CSC) | 25% |
| On completion (with keys) | 20% |
IAS vs NPS: Key Differences in Practice
| Factor | IAS | NPS |
|---|---|---|
| Purchase Price | Higher (2–3% premium) | Lower (2–3% discount) |
| During Construction | No monthly bank repayments | Pay bank interest monthly |
| Cash Flow Impact | Lower during construction | Higher during construction |
| Best For | Owner-occupier, tight cash flow | Investor, rental income during |
| Total Cost | Higher (premium + no savings) | Can be lower if rates fall |
Worked Example: $1.5M Condo, IAS vs NPS
Assume a $1.5M IAS price vs $1.455M NPS price (3% discount). Construction period: 3 years. Bank loan: 75%. Interest rate: 3.8% during construction.
- IAS total cost: $1.5M + BSD $44,600 = $1,544,600 (no construction period interest)
- NPS total cost: $1.455M + BSD ~$43,200 + construction interest (~$83,000 over 3 years on progressive loan drawdowns) = ~$1,581,200
- IAS advantage: $36,600 total cost savings vs NPS in this example
The math can reverse if the investor receives rental income during construction (sub-letting an existing property) that offsets the NPS interest burden. Run the numbers specific to your situation with your property consultant.
Which Scheme Do Singapore Developers Use in 2026?
Most Singapore new launch projects offer IAS as the default scheme, with NPS available at buyer request (or automatically applied for certain price points). IAS is overwhelmingly preferred by owner-occupiers. Investors who plan to rent out immediately at TOP sometimes prefer NPS for the lower headline price.
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Related Guides
- Singapore Condo Downpayment Calculator 2026
- New Launch vs Resale: Which to Buy?
- First-Time Buyer Guide Singapore 2026
- TDSR Guide Singapore 2026
