Pay 3% More to Pay Later? What the EC Deferred Payment Really Costs You.

Part of the ECs guide · every article on the area in one place

On the last ECs with the Deferred Payment Scheme, you can pay 20% now and the rest when the project is done. It sounds like free time. It usually costs 2% to 3% more on the price, so the question is whether that time is worth it to you.

How the two schemes work

The scheme is only on ECs under the old rules. EC sites tendered from 8 May 2026 will not offer it (MND, HDB, May 2026). That makes Solano Grand, Sembawang Road EC and Wynwood Grand among the last chances to use it.

The cost: about $24,000 on an $800,000 EC

99.co's worked example prices an $800,000 EC at $824,000 under the scheme, a 3% premium. Including stamp duty and legal fees, the total outlay comes to $846,034 under the scheme against $821,314 under the normal scheme, a difference of $24,720.

Past launches point the same way. Lumina Grand and Copen Grand reportedly priced their deferred-payment units about 3% higher (CDL, EdgeProp launch reports).

What you save: interest during construction

Under the normal scheme you start drawing your loan, and paying interest, while the building goes up. Under the deferred scheme you don't. Take a $640,000 loan drawn in stages over about three years, with half of it outstanding on average. The interest you avoid depends on the rate.

These are illustrations with simple assumptions, not a quote. At around 2.5%, the interest saved roughly matches the 3% premium. So on interest alone, the scheme is close to break-even. Your actual figure depends on the bank package and how quickly the developer completes each construction stage, so it could come out higher or lower.

The real reason to pay it: one home at a time

The value is cash flow, not interest. If you own an HDB flat, the deferred scheme lets you stay in it and keep paying only its loan while the EC is built, then sell after you collect keys. You must sell within six months of key collection (HDB). Under the normal scheme, you may be paying for both homes at the same time. It also removes the scramble of selling your flat before the EC is ready.

That matters most for HDB upgraders whose cash and CPF are tied up in the flat. For a first-time couple renting or living with parents, the premium buys less. My EC or private condo guide covers the wider trade-off.

The catch

In the 99.co example, the balance due at completion on the $824,000 unit is $659,200, which is 80% of the price, paid through your loan, CPF and cash in one go. Ask the sales team to quote the same unit under both schemes side by side, so you compare like with like.

A 48-hour Property Decision Review can map that month-by-month cash against your own flat sale and loan before you choose.

A deferred scheme means a large balance falls due at completion. If interest rates are higher by then, or your flat sells for less, your loan and cash must stretch further than planned. Ask the bank for an in-principle approval and a stress test at a higher rate. Speak to a licensed financial adviser for advice specific to your situation.

My view: for an HDB upgrader who would otherwise carry two loans, 3% for one home at a time is usually money well spent. For anyone else, I would take the lower price.

Questions readers ask

Sources