Should you buy a new launch and rent while it is built, or buy a resale and pay the full loan now? Fill in your numbers, read the verdict, then open the full breakdown to see how the money plays out year by year.
1. Enter your numbers → 2. Read the verdict → 3. Open the full breakdown for the year-by-year detail
Under the progressive payment scheme you pay only 20% by the time you sign the S&P, and the bank charges interest solely on the loan drawn - so early new launch instalments are a fraction of a resale's full 75% loan from day one (Housing Developers Rules, verified Aug 2026). Last updated: 12 August 2026
New to these terms? Tap for plain-English meanings
New launch: a brand-new home you buy before it is built, paying in stages.
Resale: a completed home you buy and move into straight away.
TOP: when the new home is ready and you collect your keys, usually 3 to 4 years.
Progressive payment: you pay for a new launch bit by bit as it is built, so early instalments are small.
CPF OA: your CPF Ordinary Account savings, which can pay your home loan.
Accrued interest: the CPF interest you must put back into CPF when you sell, on top of the CPF you used.
LTV (loan to value): how much you can borrow. 75% means a 25% downpayment.
MCST: the monthly condo maintenance fee.
Your numbers
New launch + rent
$
$
$
Resale
$
$
$
$
Loan assumptions (interest, tenure, LTV — defaults set, tap to change)
Assumptions only, not a guarantee. New launches often appreciate faster than resale during and after construction, but this varies by project and market.
What you get back from selling your current home (optional)
Work out your CPF refund and cash proceeds from selling. Both figures flow straight into the CPF OA and cash reserve fields below.
$
$
$
$
Back to your CPF OA
$0
refunded (principal + accrued interest)
Cash in your pocket
$0
after loan, selling costs and CPF refund
Your CPF and income (optional, powers the cash-after-CPF view)
$
$
$
$
$
$
Most buyers do this to keep cash in the bank. Turn off to pay the downpayment fully in cash and keep your CPF OA growing at 2.5%.
The verdict
–
Save your results as a PDF report
A one-page summary of your numbers and the verdict. Handy when you talk to your banker, your partner, or us.
Projection at Year 4
New launch + rent
$0
total money in over the period (cash + CPF)
Downpayment (25%)$0
→ cash / CPF split–
Progressive mortgage$0
→ interest paid to the bank$0
→ paid by CPF OA$0
→ cash top-up needed$0
Rent paid (cash only)$0
Renovation (at TOP)$0
Paid by CPF$0
Cash you need (after CPF)$0
Value at TOP$0
Capital gain$0
Resale, full loan now
$0
total money in over the period (cash + CPF)
Downpayment (25%)$0
→ cash / CPF split–
Full mortgage$0
→ interest paid to the bank$0
→ paid by CPF OA$0
→ cash top-up needed$0
Renovation$0
Property tax$0
Maintenance / MCST$0
Paid by CPF$0
Cash you need (after CPF)$0
Value at year 4$0
Capital gain$0
Want a second opinion on your actual numbers?
Send us your figures and we will walk you through which path fits your plan. No obligation, and no follow-up unless you ask.
What leaves your pocket each month while the new launch is being built. The progressive loan starts tiny, so even with rent your early monthly can be lower than a resale paying the full instalment from day one.
On means the bars show what actually leaves your bank account (CPF OA covers the mortgage). Off shows the full commitment including the CPF-funded part.
Years 1 to 4 (during the build): stage by stage
As each construction milestone is certified, the bank draws more of your loan and your instalment steps up. Rent is added, then compared against the resale, which charges the full instalment from day one.
Milestone
Loan drawn
NL instalment/mo
+ Rent/mo
NL total/mo
Resale/mo
Years 1 to 4 (during the build): can you afford it?
When you sell, your CPF OA is refunded and you receive cash proceeds. That reserve can fund the new home's monthly commitments, so your take-home pay is barely touched. Here is how far your cash reserve stretches on each path.
Reserve check
New launch + rent
Resale
CPF OA left after loan (incl. 2.5% interest)
$0
$0
Cash reserve from sale (cash proceeds only)
$0
$0
Total funds left (CPF OA + cash reserve)
$0
$0
Monthly cash commitment (avg, after CPF)
$0
$0
Cash reserve covers
–
–
From your income while cash reserve lasts
–
–
Reserve left after the period
$0
$0
Cash saved over the period (budget not spent on cash cost)
$0
$0
Total cash buffer by year 4
$0
$0
This reserve is the cash you keep aside for the monthly payments, after settling the one-time downpayment and any renovation. Your CPF OA (refund plus monthly inflow) is applied to the loan separately, which is why the monthly figure here is the cash portion only.
Years 5 to 8 (after you move in): the recovery
Once you collect keys at TOP the rent stops for good. Your CPF OA balance and monthly contributions keep working on the mortgage, and the cash you were spending on rent can be saved back up. Here is how it rebuilds over the next four years.
Year
CPF OA balance
Cash reserve rebuilt
Cash out of pocket/mo
This assumes you keep the same monthly housing budget and save the money no longer spent on rent. Your CPF OA keeps earning 2.5% and servicing the loan as far as it can; after moving in your cash cost is property tax, MCST, and any part of the instalment your monthly CPF inflow does not cover.
Year 8: where you stand overall
The longer view. A few years after the new launch is completed, here is the wealth position on each path, assuming your CPF OA services the loan throughout.
New launch
$0
total position (equity + CPF OA)
Property value$0
Capital gain$0
Loan outstanding$0
Equity (value − loan)$0
CPF OA balance$0
Resale
$0
total position (equity + CPF OA)
Property value$0
Capital gain$0
Loan outstanding$0
Equity (value − loan)$0
CPF OA balance$0
Why the new launch path can still win
Lower entry cashflow. The loan is disbursed in stages with interest only on what is drawn, so first-year instalments are a fraction of a resale loan, even while renting.
Buy at today's price. Lock in the price now, pay progressively; any appreciation by completion is yours, on an asset secured with staged payments.
A brand new asset. Fresh lease, developer warranty, lower near-term maintenance, and usually stronger rentability and resale appeal.
No holding costs during the build. No property tax or MCST until TOP, and less renovation than a resale. The resale owner pays all of these from day one.
The honest trade-off. Rent is money you do not get back, and the new launch can cost more total cash if rent is high. A resale lets you own and build equity immediately. The new launch case rests on appreciation and gentler early cashflow, so it works best when you hold to completion and pick well.
Plan for the ramp: new launch instalments rise as construction progresses and jump at TOP when the loan is nearly fully drawn and rent stops. Make sure the year 3 to 4 monthly figure still fits comfortably within your Total Debt Servicing Ratio.
Progressive payment milestones used
Standard private property schedule under the Housing Developers Rules. Timing of each stage is spread across your build period.
Stage
Payment
Cumulative
Booking (OTP)
5%
5%
Sign S&P Agreement
15%
20%
Foundation
10%
30%
Reinforced concrete framework
10%
40%
Partition walls
5%
45%
Ceiling / roofing
5%
50%
Doors, wiring, plumbing
5%
55%
Car park, roads, drains
5%
60%
Temporary Occupation Permit (TOP)
25%
85%
Legal completion (CSC)
15%
100%
Frequently asked questions
Is buying a new launch and renting cheaper than buying a resale?
In the early years, a new launch on the progressive payment scheme has much lower monthly instalments because the loan is disbursed in stages. Even after adding rent, the first year cash outflow can be lower than a resale where you service the full 75% loan from day one, especially once your CPF OA covers the loan. Over the full construction period the new launch may commit more money because of rent, but it locks in today's price and captures appreciation on a brand new asset.
How does the progressive payment scheme work in Singapore?
For a property under construction you pay in stages tied to building milestones: typically 5% on booking, 15% on signing the Sale and Purchase Agreement, then 10% at foundation, 10% at framework, smaller tranches through the build, 25% at Temporary Occupation Permit (TOP), and 15% at legal completion. The bank loan is disbursed progressively and interest is charged only on what is drawn, so early instalments are small.
What loan to value applies to a new launch and a resale?
For a first housing loan the maximum loan to value is 75%, so you put down 25% with at least 5% in cash. This applies to both new launch and resale. To keep 75%, the loan tenure must not exceed 30 years and must not run past the borrower turning 65, otherwise the limit drops to 55%. Actual eligibility also depends on your Total Debt Servicing Ratio.
Can I use my CPF Ordinary Account to pay the monthly loan?
Yes. Your CPF OA balance and monthly OA contributions can service the home loan instalments for both paths, which is why the cash-after-CPF view can be much lower than the full commitment. Rent, renovation, property tax and MCST maintenance must be paid in cash, not CPF. Using more CPF also means more accrued interest to refund when you eventually sell.
When do I stop paying rent on a new launch?
You rent only while the unit is being built. Once it reaches TOP, usually around three to four years after launch, you collect keys and move in and the rent stops. From then you pay only the mortgage, plus property tax and MCST like any owner. One practical point: a typical rental lease in Singapore runs one to two years, so you will need to renew or extend your tenancy to cover the full build period, and budget for rent possibly rising at each renewal. Plan your lease end dates to line up with the expected TOP so you are not caught between homes.
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