How the Deferred Payment Scheme (DPS) Works for Solano Grand EC

For many buyers eyeing Solano Grand EC at Senja Close, the headline price of $1,500–$1,700 psf is only half the story. The other half is how you pay for it. Under the old Executive Condominium framework, eligible buyers can opt for the Deferred Payment Scheme (DPS)—a financial tool that can significantly reduce your cash outlay during the construction period and give you breathing room as you transition from your current home. With the DPS disappearing from new EC launches from 2027 onwards, understanding how it works for Senja Close EC is not just useful. It is essential.

What Is the Deferred Payment Scheme?

The Deferred Payment Scheme is a payment structure available to buyers of new ECs under the old framework. Under DPS, you pay the standard 5% option fee and 15% down payment upfront (totaling 20%), but the remaining 80% of the purchase price is deferred until the project receives Temporary Occupation Permit (TOP). During the construction period—typically 2.5 to 3 years for a project like Solano Grand EC—you make only minimal or no payments on the deferred portion, depending on the specific arrangement with the developer.

This is fundamentally different from the Normal Payment Scheme (NPS), where buyers make progressive payments tied to construction milestones. Under NPS, you start servicing your loan—and paying interest—from the moment foundations are laid. Under DPS, your loan only kicks in at TOP, giving you 2–3 years of financial breathing room.

Why DPS Matters for Solano Grand EC Buyers

At an estimated price of $1,500–$1,700 psf, a 3-bedroom unit at Solano Grand EC could cost between $1.35 million and $1.7 million. Under the Normal Payment Scheme, buyers begin servicing their loan almost immediately, adding $3,000–$5,000 per month to their expenses during the construction period. For families who are still living in their current HDB flat and paying an existing mortgage or rent, this dual financial burden can be challenging.

The DPS eliminates this pressure. By deferring the bulk of payment until TOP, buyers can:

• Continue living in their current home without the strain of dual housing payments
• Save more aggressively during the construction period to prepare for the full loan
• Time the sale of their existing HDB flat closer to the TOP date, reducing the gap between selling and moving
• Avoid paying interest on 80% of the loan amount for 2–3 years, saving tens of thousands in interest

"The Deferred Payment Scheme is one of the most underappreciated advantages of the old EC framework. It is not just about convenience—it is about keeping tens of thousands of dollars in your pocket during the construction period."

The Numbers: DPS vs. NPS for a Typical Solano Grand EC Unit

Let us compare the two schemes for a 3-bedroom unit priced at $1,520,000 (950 sq ft at $1,600 psf):

Normal Payment Scheme (NPS):

• 5% option fee: $76,000 (paid in cash)
• 15% down payment: $228,000 (CPF + cash)
• Progressive payments begin immediately as construction milestones are hit
• Monthly loan servicing starts within 6–12 months of purchase
• Estimated monthly payment during construction: $3,500–$4,500 (increasing as more stages complete)
• Total interest paid during construction: approximately $25,000–$35,000

Deferred Payment Scheme (DPS):

• 5% option fee: $76,000 (paid in cash)
• 15% down payment: $228,000 (CPF + cash)
• No progressive payments during construction
• No loan servicing until TOP (estimated 2029)
• Monthly payment during construction: $0
• Total interest saved during construction: approximately $25,000–$35,000

Who Qualifies for DPS at Solano Grand EC?

Not all buyers are eligible for the Deferred Payment Scheme. To qualify for DPS at Solano Grand EC, you must:

• Be a first-timer applicant (neither you nor your spouse has previously owned an HDB flat or received a CPF Housing Grant)
• Purchase under the old EC framework (which applies to Solano Grand EC, launched before the 2027 rule changes)
• Take a bank loan (DPS is not available with HDB loans, which EC buyers cannot use anyway)

Second-timer buyers and those who have previously owned subsidised housing are typically required to use the Normal Payment Scheme. This makes DPS a particularly valuable advantage for young first-timer couples buying their first property.

The Catch: What DPS Buyers Need to Know

While the DPS offers significant advantages, it is not without considerations:

• Higher overall price: Developers typically charge a 2–3% premium for DPS units to offset the delayed cash flow. On a $1.52 million unit, this could mean paying $30,000–$45,000 more.
• Larger loan at TOP: Because you have not been making progressive payments, your loan amount at TOP is the full 80%. This means higher monthly instalments once the loan begins.
• Interest rate risk: If interest rates rise between purchase and TOP (2026 to 2029), your monthly payments could be higher than initially projected.
• Less flexibility to sell early: DPS buyers who need to sell before TOP may face restrictions or penalties depending on the developer's terms.

Is DPS Right for You?

The Deferred Payment Scheme is ideal for buyers who:

• Are currently living in a home they plan to sell closer to the TOP date
• Want to minimise monthly outgoings during the construction period
• Have stable income prospects and are comfortable with a larger loan at TOP
• Value the psychological comfort of not servicing two housing payments simultaneously

For Solano Grand EC buyers at Senja Close, the DPS represents one of the last opportunities to access this advantageous payment structure. With the old EC framework phasing out after 2026, future EC launches will not offer this option. If you are a first-timer buyer considering this Bukit Panjang development, the DPS deserves serious consideration in your financial planning.