Future instalment increase
Payments will rise closer to completion.
Purchase structure guide
New Launch and BUC Home Loan Singapore
How progressive payment and staged loan drawdown work when buying a building-under-construction property.
Last updated: March 2026
Quick Answer
For new launch properties, the home loan is not fully drawn at once.
Instead, the loan is disbursed progressively as the project is built.
This means:
- instalments start small
- repayments increase over time
- the full loan only applies near completion
What Is A BUC Property
BUC stands for Building Under Construction.
Typical examples:
- new launch condominium
- executive condominium under construction
Buyers pay the purchase price in stages tied to construction progress.
Progressive Payment Timeline
| Construction Stage | Typical Payment |
|---|---|
| Option to purchase | 5% |
| Sale & purchase agreement | 15% |
| Foundation completed | 10% |
| Structural framework | 10% |
| Walls completed | 5% |
| Roofing completed | 5% |
| Temporary Occupation Permit (TOP) | 25% |
| Completion | Remaining balance |
Actual schedules may vary slightly depending on project.
How The Home Loan Is Disbursed
Banks release the loan stage by stage as construction milestones are reached.
This means the loan outstanding increases gradually.
Why Instalments Start Small
Property price
S$1,200,000
Initial loan drawdown
S$200,000
Interest charged only on the amount drawn.
Early instalments can be relatively small because the full loan is not yet released.
How Instalments Increase Over Time
Stage 1
Loan drawn: S$200k
Stage 2
Loan drawn: S$500k
Stage 3
Loan drawn: S$900k
Final stage
Full loan amount applies
Monthly instalments increase as more of the loan is released.
Why BUC Loan Planning Matters
Refinancing timing
Many buyers review packages before or after TOP.
Rate structure
Loan packages selected early may need review later.
Cashflow planning
Buyers must prepare for higher repayments later.
Pre-TOP Loan Review
Many borrowers review their mortgage packages near TOP.
Possible options:
- stay with current bank
- reprice
- refinance
Example BUC Buyer Timeline
Year 0
Purchase new launch property.
Year 1 to 3
Progressive loan drawdown.
Near TOP
Loan balance approaches full amount.
Post TOP
Full instalment begins.
Where This Page Fits In Your Loan Journey
Free Consultation
Buying a new launch property?
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FAQ
What is a BUC home loan?
A BUC loan finances a property that is still under construction.
Why are instalments lower at the start?
Because the bank releases the loan progressively as construction progresses.
When does the full mortgage repayment start?
Usually near TOP when the full loan amount has been drawn.
Should I review my mortgage near TOP?
Yes. Many borrowers review repricing or refinancing options around that time.