BUC stands for Building Under Construction. When you buy a new launch condo or an uncompleted property, you do not pay the full loan at once. Instead you pay in stages as the building is constructed, under the Progressive Payment Scheme.
What is the Progressive Payment Scheme?
For a BUC property, the developer draws down your loan in steps that match each construction milestone. Your bank disburses money only as each stage is reached, so your loan amount, and your monthly repayment, grow over time rather than starting at the full sum. Early payments are small and increase as construction advances.
The payment stages
The schedule below is the standard Progressive Payment Scheme structure. The percentages are set by regulation and apply to the purchase price.
| Stage | Payment |
|---|---|
| Upon signing the Sale and Purchase Agreement / booking | 5 percent + 15 percent |
| Completion of foundation | 10 percent |
| Completion of reinforced concrete framework | 10 percent |
| Completion of brick walls | 5 percent |
| Completion of roofing and ceiling | 5 percent |
| Completion of door frames, wiring and plumbing | 5 percent |
| Completion of car parks, roads and drains | 5 percent |
| Temporary Occupation Permit (TOP) | 25 percent |
| Certificate of Statutory Completion | 15 percent |
When do full monthly installments begin?
Because the loan is released in stages, your monthly repayment starts small and rises with each drawdown. You only pay the full monthly installment once the entire loan has been disbursed, which typically happens around the Temporary Occupation Permit (TOP) stage when the bulk of the loan is drawn. Until then your payments are lower because you are only servicing the portion released so far.
Get your loan approved before you sign the OTP
You should secure an Approval in Principle (also called In Principle Approval) before you sign the Option to Purchase. This confirms how much a bank will lend you based on your income and existing commitments. Signing the OTP first and discovering later that your loan falls short can put your booking fee at risk.
How much down payment do you need?
For a first property bank loan, the maximum loan is 75 percent of the price (the Loan to Value limit), so you fund the remaining 25 percent. At least 5 percent must be paid in cash, and the rest can come from cash or your CPF Ordinary Account. Your borrowing is also capped by the Total Debt Servicing Ratio (TDSR) of 55 percent of gross monthly income.
BUC vs a completed property
- Lower early outlay. Progressive payments ease cash flow in the first years.
- Time to plan. You have the construction period before full repayments begin.
- Rate choice matters. Some packages suit BUC better because of how interest is charged during construction. We help you pick one built for progressive drawdown.
Use the BUC option in the mortgage calculator to see your stage-by-stage payments, or message us for a free package comparison.