The Lendela Team
September 16th, 2026
Table of contents
- A BTO purchase asks for money at five separate points across three to five years, not once.
- The option fee is due in cash at booking, varies by flat type, and counts toward your downpayment rather than sitting on top of it.
- On a bank loan, 5% of the purchase price must be paid in cash and cannot come from CPF. On a $500,000 flat that is $25,000 in actual cash.
- The Staggered Downpayment Scheme changes when you pay, not how much.
- Renovation deposits fall due before key collection, which is where most cash-flow gaps open.
A BTO purchase asks for cash at five separate points spread across three to five years: the option fee at booking, stamp duty and legal fees plus the first downpayment instalment at signing (10% on an HDB loan, or 5% cash plus 5% CPF/cash on a bank loan), the remaining downpayment at key collection, and renovation deposits that fall due before that key collection even happens. The amounts that catch couples out are rarely the large ones.
The sequence: an option fee in cash when you book, which varies by flat type and counts toward your downpayment. Then stamp duty and legal fees when you sign the Agreement for Lease, roughly nine months after booking. Then the first downpayment instalment at the same appointment, 10% of the purchase price if you take an HDB loan, or 5% cash plus 5% from CPF or cash on a bank loan. Then the remaining downpayment at key collection, three to five years later. Then renovation and furnishing, which begins before your keys are in hand because contractors quote and take deposits ahead of handover.
The pressure points are not the downpayment, which most couples plan for carefully. They are the smaller cash-only amounts that arrive at fixed dates regardless of whether your CPF has been disbursed, and the renovation deposits that fall due in the weeks before you own anything. Grants help: the Enhanced CPF Housing Grant provides up to $120,000 for households earning $9,000 a month or less. But grants land in CPF, and several of these costs want cash.
What do you pay when you book the flat?
The option fee, in cash, at your booking appointment. The amount varies by flat type, HDB publishes the current figures, and it counts toward your eventual downpayment rather than sitting on top of it.
This is the first real cash outlay, and it comes far earlier than most couples expect. Verify the current amount for your flat type on hdb.gov.sg before your appointment.
What falls due when you sign the Agreement for Lease?
Roughly nine months after booking, three things land at once.
The first downpayment instalment. If you take an HDB loan, 10% of the purchase price, payable in cash or CPF. On a bank loan, 5% must be cash and cannot come from CPF, with another 5% from CPF or cash.
That cash-only 5% is the single most misunderstood figure in the process. On a $500,000 flat with a bank loan, that is $25,000 in actual cash, separate from anything sitting in your Ordinary Account.
Stamp duty on the Agreement for Lease. CPF can be used, but confirm your withdrawal is approved in time rather than assuming it clears automatically.
Legal fees, subject to GST.
If cash flow is tight at this stage, the Staggered Downpayment Scheme splits the downpayment across two points instead of one: 5% at signing and 20% at keys on an HDB loan, or 2.5% and 17.5% on a bank loan. It does not reduce what you pay. It moves when you pay it.
What do you pay at key collection?
The balance of the downpayment, plus any shortfall left after your grants and loan are applied against the flat price. Also a survey fee, between $163.50 and $354.25 depending on flat type, and stamp duty on the Deed of Assignment at 0.40% of your loan amount, capped at $500.
This appointment lands three to five years after launch. Household income, savings and circumstances all move in that window, and the amount owed does not.
Why does renovation cost money before you own the flat?
Because contractors quote and collect deposits before handover, not after. Couples routinely discover that the renovation timeline runs ahead of the ownership timeline, and that a deposit is due while the flat is still HDB's.
This is where the gap opens. Your CPF is committed to the flat. Your savings went to the downpayment. The renovation deposit wants cash, now.
What comes after the keys?
Furnishing, which most people underestimate, and for anyone taking over an older resale flat rather than a new BTO, appliance replacement on top. We have looked at both in detail: the real cost of furnishing a flat, and the aircon overhaul nobody warns you about.
Ongoing costs also begin here: HDB Fire Insurance, and Home Protection Scheme premiums if you are using CPF for your monthly instalments.
The gap nobody names: money borrowed from parents
Among people who apply through Lendela, about 1 in 8 are borrowing to repay loans from family and friends. It is the second most common reason anyone comes to us, ahead of paying bills and ahead of renovation.
That number describes something a BTO timeline makes obvious. The cash-only portions of a flat purchase arrive at fixed dates, and when they arrive early, alternative means are explored to cover them.
There is nothing wrong with taking a loan from family, and many people feel safer keeping it within trusted connections. But an informal loan from family is still a loan, and tends to become an intangible source of stress for relationships within the family. Naming it early, while you are still planning the flat, is easier than negotiating it afterwards.
What to settle before you ballot
Know your cash-only figure, not just your total downpayment. On a bank loan that 5% cannot come from CPF.
Decide on the Staggered Downpayment Scheme before signing, not during. It changes your timing, not your total.
Check your EHG eligibility early. Up to $120,000 for households at $9,000 a month or below, but it lands in CPF rather than as cash.
Ask what your renovation contractor's deposit terms are before you commit to a quote, so the timing does not surprise you.
If family money is part of the plan, agree to the terms while it is still a plan.
Where a personal loan genuinely fits, and where it does not
Not for the downpayment. That is what CPF, grants and savings are for, and borrowing unsecured to fund a secured purchase is expensive and usually unnecessary.
Where it can make sense is the specific, bounded gap: a renovation deposit due before your CPF disburses, a single fixture or system rather than a whole renovation, or repaying an informal family loan on terms you both understand.
If that is the situation, comparing what is actually available to you costs nothing and takes one application. Lendela matches you with personalised offers from 70+ licensed lenders, with no impact on your credit score from checking.
Get matched with loan options today
Save on interest and fees on your next loan. Join thousands who use Lendela - match with your most competitive loan rates in minutes. It's private and totally free to take a peek!
Frequently asked questions
How much cash do I need for a BTO flat?
It depends on your loan type. With an HDB loan, the downpayment is 10% at signing and can come from cash or CPF. With a bank loan, 5% must be cash and cannot come from CPF, with a further 5% from either. On a $500,000 flat with a bank loan, that cash-only portion is $25,000. Option fee, stamp duty and legal fees sit on top, though CPF can be used for stamp duty and legal fees.
When is the option fee due, and is it refundable?
It is due in cash at your booking appointment, and the amount varies by flat type. It forms part of your eventual downpayment rather than being an additional cost. Check the current figure for your flat type on hdb.gov.sg.
Can I use CPF for stamp duty and legal fees on a BTO?
Yes. CPF Ordinary Account savings can be used for both. Confirm your withdrawal is approved ahead of the appointment rather than assuming it clears automatically.
What is the Staggered Downpayment Scheme?
It splits your downpayment across two points instead of one. On an HDB loan, 5% at signing and 20% at key collection. On a bank loan, 2.5% and 17.5%. It does not reduce what you pay in total, only when each portion falls due.
Why do I need money for renovation before I collect my keys?
Contractors quote and collect deposits ahead of handover, so the renovation timeline runs ahead of the ownership timeline. This is a common cash-flow gap, since CPF is committed to the flat and savings have usually gone to the downpayment by that point.
Read more
Sources: HDB (hdb.gov.sg, mynicehome.gov.sg), CPF Board, MoneySmart, Endowus. Figures verified September 2026.
The Lendela Team
Lendela is a loan-matching platform that partners with 70+ MAS-licensed lenders. We aim to deliver a transparent, safe, and personalised loan-matching experience, empowering borrowers with confidence to choose what truly fits. Since launching in 2018, we’ve helped hundreds of thousands of Singaporeans make smarter, more informed financial decisions through clarity and control.
