How can I buy an Executive Condo when my money is stuck in my HDB?
With launches such as Piermont Grand (at the time of writing), the question returns: how can an HDB upgrader afford a brand-new executive condominium when capital is still in the flat?
In general, upgrading from HDB to a brand-new EC is less financially taxing than a brand-new private condo. IRAS has an ABSD remission for eligible HDB owners buying a new EC, and you can keep living in the flat and sell it after the EC obtains TOP. On LTV: because HDB owners buying a brand-new EC must undertake to sell the flat within six months of taking possession of the EC, banks treat the EC loan as a first housing loan — up to 75% — even while the HDB loan is still running.
Updated Sep 2026 — what has changed since 2019:
- Deferred payment is being phased out for ECs. For EC sites whose land tender closed on or after 8 May 2026, the deferred payment scheme is abolished, the MOP is 10 years (was 5) and full privatisation comes after 15 years (was 10). ECs from earlier sites — including Coastal Cabana and the upcoming ECs at Senja Close, Woodlands Drive 17, Sembawang Road and Miltonia Close — keep the old rules, and several are expected to offer DPS (EdgeProp).
- First-timers get priority: 90% of units (was 70%) for two years (was one month) on the new sites, which squeezes HDB upgraders (second-timers).
- Income ceiling: S$16,000 for current ECs; S$18,000 for EC sites tendered from 24 Aug 2026.
- Loan tests: the 30% Mortgage Servicing Ratio applies to ECs bought from developers, and banks test affordability at a 4% interest floor.
The progressive payment schedule and BSD figures below are still current. Confirm everything with the developer’s SPA, your bank, CPF, HDB, and IRAS. This site does not calculate loans or stamp duty.
Financing an Executive Condo
Normal payment scheme (NPS)
Buyers may choose normal (progressive) payment or — for ECs from sites tendered before 8 May 2026 that offer it — deferred payment (DPS).
Under NPS, buyers pay as the developer hits construction milestones. Illustration for an SGD 1,000,000 property (the schedule is unchanged in 2026, and BSD on S$1m is still S$24,600):
| Progress | Payment % | Payment $ | Payment mode |
|---|---|---|---|
| Booking — grant of OTP | 5% | S$50,000 | Cash |
| S&P — within ~8 weeks of option date | 15% | S$150,000 | Cash or CPF |
| BSD — within 14 days of S&P | – | S$24,600 | Cash first, then reimburse with CPF if allowed |
| Foundation | 10% | S$100,000 | First 5% cash/CPF; next 5% cash/CPF/loan |
| Framework | 10% | S$100,000 | Cash/CPF/loan |
| Wall | 5% | S$50,000 | Cash/CPF/loan |
| Ceiling | 5% | S$50,000 | Cash/CPF/loan |
| Windows / plumbing | 5% | S$50,000 | Cash/CPF/loan |
| Carpark / roads / drains | 5% | S$50,000 | Cash/CPF/loan |
| TOP | 25% | S$250,000 | Cash/CPF/loan |
| CSC / legal completion | 15% | S$150,000 | Cash/CPF/loan |
If a buyer can secure up to 75% loan and fund 25%+ plus BSD, NPS is usually preferred — purchase price under NPS is often 3–5% lower than DPS in the original market framing.
Deferred payment + bridging loan
This section applies only to ECs that still offer DPS — i.e. from sites tendered before 8 May 2026. New EC sites from that date must use the normal payment scheme.
Many HDB upgraders in their late 30s+ cannot buy on NPS because:
- Money is stuck in the existing HDB
- Age/income limits the loan
They need to “cash out” the HDB — but not necessarily immediately. With DPS, they may cash out nearer TOP.
Under DPS (historical illustration), buyers pay about 20% before TOP; the rest is largely due at TOP / completion:
| Progress | Payment % | Payment $ | Notes |
|---|---|---|---|
| Booking | 5% | S$50,000 | Cash |
| S&P | 15% | S$150,000 | Cash or CPF |
| BSD | – | S$24,600 | Cash first |
| Construction milestones | – | – | Deferred under DPS |
| TOP | 65% | S$650,000 | Large tranche |
| CSC | 15% | S$150,000 | Cash/CPF/loan |
If the upgrader can fund 20% + BSD, DPS improves the shot at buying an EC without selling the HDB on day one.
If the bank only lends ~S$700,000 toward a S$1,000,000 home, there is a S$100,000 shortfall vs an 80% structure — a bridging loan may cover part of that if future HDB sale proceeds are expected to exceed the shortfall.
Bridging loan — what to know
A bridging loan is a short-term loan bridging sale of the old property and purchase of the new one. Typical terms (checked against bank and comparison-site information, Sep 2026):
- Tenure often ~6 months max — sell the old property within that window
- Coverage often only ~20–25% of the new property price, capped by expected net sale proceeds
- Interest around ~5–6% p.a. (illustrative) on the period used, plus a processing fee
- Full repayment when old-property sale proceeds arrive
Why not just wait for TOP under DPS without bridging?
You can — if the 20% is pure cash. If you use CPF for the 20%, CPF generally requires proof you can finance the property (including the deferred portion) via CPF + bank capacity at purchase — so a shortfall can still block CPF release.
Final words
Bridging helps, but brings interest, timeline risk, and order of disbursement (cash, CPF, bank loan). Wrong order can be expensive.
Seek an experienced salesperson and banker before you combine DPS + bridging.
See also
Next step
HDB household eyeing a new EC? Send ages, incomes, estimated HDB proceeds, and target EC price on WhatsApp — we map NPS vs DPS vs bridging before showflat FOMO.