The Overview Of Buc Loan Singapore
BUC is referred to as Building Under Construction which means a building still under construction and is not completed yet. Sometimes a developer can leave the building if there is no surge in sales. The buc loan singapore allows people to make payments at different stages in each schedule.
A person must obtain a Temporary Occupation Permit (TOP), a legal document that temporarily enables the homeowners to attain the building. In short, it is required to occupy a facility soon.
What is a buc loan
A buc loan is a loan that must be paid at different stages of the property construction. Buc loan must follow the payment schedule; otherwise, the lender will impose penalties. It is unlike the loan, which must be paid on the completion of the building. This type of loan is 100% paid at one time on completion. When a person purchases the buc, they must follow Progressive Payment Scheme.
What is Progressive Payment Scheme? How does it work?
Whenever a person opts for the (PPS), they make the payments in instalments with the construction progress. It works as mentioned below:
- A person must pay the OTP fee in cash which is 5%.
- A person needs to sign the Sale and Purchase agreement; they have to pay the remaining down payment, which is 15%.
- A person has to settle any stamp duties
After all the points mentioned above, the monthly repayments will begin. Progressive payment structure has made the payment system so easy that a person cannot wait for the TOP date to obtain the residence loan. Discounts are provided in under-construction projects. The banks’ loans are floating rates, so the monthly instalments will decrease if the interest rate declines.
Types of buc loans
- Fixed-rate package
- Floating rate
- SIBBOR pegged
- SOR pegged
- Banks internal reference pegged
A person will not receive the full buc loan after the application is approved because a certain amount will be paid at each stage of the construction period. This is also known as a progressive payment scheme. This process is used to get a buc loan singapore. A person has to apply for a temporary occupation permit to occupy the building. There are many types of buc loans to help people get loans quickly. A person has to obtain a buc loan to get a better discount and modify the building according to them.