The short answer
For a regulated under-construction housing sale, the signed SPA sets when purchase-price instalments become due as certified work progresses. If you use financing, the facility letter separately governs what the bank disburses and what you must service. Read both documents together before treating a sales illustration as your cash-flow plan.
Schedule H vs Schedule G
KPKT's buyer guidance identifies two prescribed SPA forms commonly relevant to housing developments:
- Schedule G — land-and-building housing, with KPKT examples including bungalow, semi-detached and terrace housing.
- Schedule H — a subdivided building, with KPKT examples including condominium, flat, apartment and townhouse.
That is a starting point, not permission to infer the legal form from a project name or brochure. Commercial-title products and other arrangements may require different analysis. Obtain the actual SPA and ask an independent solicitor to confirm the governing form and buyer protections.
How the stage releases work
KPKT warns that an instalment requested by a developer should be supported by the certification required under the prescribed SPA. A simplified sequence may include the stages below, but the wording, percentages and certification requirements in your own SPA are controlling:
| Stage | Trigger |
|---|---|
| Booking / SPA signing | Upon signing the sale and purchase agreement |
| Foundation & structural work | Substructure / superstructure completed |
| Walls, roof, plumbing & wiring | Internal and external works progressing |
| Internal finishes & fittings | Doors, windows, finishes installed |
| Practical completion / CCC | Vacant possession with Certificate of Completion and Compliance |
| Final retention | Released after the defect liability period considerations |
When a certified claim is issued, submit it promptly to the bank and solicitor handling the transaction. Confirm who pays any portion not covered by financing and what deadline applies; do not assume the bank will automatically handle every claim without action from you.
When your instalments actually start
There is no safe universal repayment pattern to publish for every bank facility. A common illustration may show servicing on amounts already disbursed before the facility is fully drawn, but the rate basis, repayment amount and timing depend on the facility letter. Ask the bank to show, in writing:
- the assumed construction and drawdown dates;
- the payment due after each drawdown;
- how a variable rate change affects the amount;
- what happens if a claim is delayed or disputed; and
- the expected payment after full drawdown.
Plan your cash flow for this ramp-up, especially if you are renting elsewhere while you wait for keys.
Interest during construction
Do not assume interest or profit during construction is absorbed, capitalised or calculated the same way across products. Read the rate basis, disbursement clause and repayment schedule in the facility letter, then obtain a written illustration from the bank for your expected drawdowns.
A brief word on DIBS
Treat any "pay nothing until keys", rebate or interest-absorption pitch as a claim that needs written evidence. Ask who pays, for how long, whether the amount is built into the price, what happens after a delay, and whether the promise appears in an enforceable document reviewed by your solicitor.
Who this suits / who should think twice
Progressive payment may suit you if: the documented construction horizon and written bank illustration fit your budget, including overlap with rent or another loan.
Think twice if: you need a home to move into now, you cannot comfortably carry both rent and rising instalments during construction, or you are uncomfortable with construction-timeline risk.
Risk checklist before you commit
- Confirm whether your SPA is Schedule G or Schedule H and read the stage percentages.
- Check the developer's track record on delivering past projects on time.
- Ask your banker exactly how interest during construction is charged and whether your instalment ramps up or stays level.
- Budget from the bank's written illustration rather than an assumed smooth cash-flow ramp.
- Do not rely on an unwritten rebate or interest-absorption promise.
If you would like the stage-by-stage payment profile mapped against your own budget for a specific launch, message CK and we can walk through the schedule together.