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Best BUC Home Loan Rates Singapore - $3,300 Rewards

For those looking to buy new properties in Singapore, Building Under Construction (BUC) options are fast becoming a favoured option. We provide expert BUC home loan comparisons, discover the best BUC loan interest rates across major banks like DBS, UOB, Standard Chartered, Maybank, Citibank, HSBC, CIMB Bank and OCBC Bank.

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Understanding A
BUC Home Loan

Benefits Of A
BUC Home Loan
in Singapore

Why Choose Us
For A BUC Home Loan

Types of Building
Under Construction (BUC) Loan Interest Rates

Compare BUC Home Loan Rates

BUC Home Loan
Approval Process

Reviews By
Our Satisfied BUC
Loan Customers

Frequently Asked
Questions About
BUC Home Loans in singapore


A BUC loan offers a specialised financing solution for properties that are still in the construction phase. Unlike traditional home loans that finance fully completed properties, BUC loans feature a progressive disbursement schedule, otherwise known as the Progressive Payment Scheme (PPS). 

The PPS ensures that you start repaying the loan in portions, aligned with the specific stages of construction. This means that you only start repaying when you actually need the funds, providing a layer of financial flexibility not usually found in standard home loans. As such, BUC loans can help you reduce the burden of large lump-sum payments.

Considerations and Risks

While a Building Under Construction (BUC) property can be an attractive choice for homebuyers, here are some associated risks that you should take into consideration:

  • Project Delays: The developer may delay the construction, which can postpone your move-in date. In some cases, they may even abandon the project if the sales do not meet certain quotas.
  • Quality Concerns: The finished property might not meet the expectations set by the show-flat or contractual agreements. This can range from poor-quality materials and finishes to structural issues that require additional investment to rectify.
  • Unpredictable Rental Yields: Unlike existing properties with historical rental data, BUCs do not offer past performance indicators, making it challenging to accurately forecast rental income.

To safeguard your investment in a BUC property, it’s essential to conduct thorough due diligence. Start by researching the developer’s past projects to verify their track record for timely completion. Additionally, be sure to read the Sales and Purchase Agreement carefully, and if needed, consult a legal advisor in Singapore to clarify your rights and obligations, especially concerning project delays or abandonment. For added peace of mind, consider specialised insurance policies that cover these risks.


From flexible repayment options to the potential for capital appreciation, here are some key benefits that make BUC loans an attractive choice for prospective homeowners in Singapore.

Tailored Financing Options

BUC loans frequently offer more flexible repayment schemes, such as the Progressive Payment Scheme (PPS), where you only pay for the property in portions while it is being built. This allows for easier financial planning.

Potential for Capital Appreciation

Buying a property in its construction phase can offer a higher potential for capital appreciation. By the time the property is completed, market values could have risen, providing you with instant equity.

Lower Upfront Costs

Depending on the loan arrangement, BUC loans can offer lower upfront costs compared to conventional loans in Singapore, allowing you to enter the property market with a smaller initial outlay.


Unmatched Expertise

Choosing the right financing for a Building Under Construction property is a crucial decision, and this is where DollarBack Mortgage’s expertise lies. We offer a comprehensive suite of mortgage advisory services, from property valuations to selecting and applying for the ideal home loan, making us a one-stop solution for all your BUC financing needs. When you engage DollarBack Mortgage for your BUC loan, you gain a dedicated financial partner committed to getting you the best terms possible. 

Exclusive Rewards and Benefits

When you secure a BUC loan through us, you get to enjoy competitive interest rate plans and loan terms, plus attractive benefits like exclusive cash rewards, vouchers, and rebates on legal fees. 

For loans of S$300k or above, you could qualify for up to S$3,300 in cash rewards and substantial legal fee rebates or subsidies. Reach out to our DollarBack Mortgage consultants today, who will guide you through our current promotions, ensuring you optimise your savings and advantages.


When financing a Building Under Construction (BUC) property, various loan packages are available, each with its own set of advantages and drawbacks. Understanding these can help you make an informed decision that suits your financial needs.

The interest rate fluctuates based on market conditions, allowing you to benefit from reduced rates during favourable economic climates. The downside is the unpredictability, as rates can also increase, impacting your monthly repayments.

These rates are decided by the bank and are usually more stable than market rates. However, there is a lack of transparency as the bank can change the rate at their discretion.

The SIBOR is publicly available, offering a transparent interest rate. However, your monthly repayments can vary due to market-driven SIBOR rates.

The SOR takes into account currency exchange rates, offering the potential for lower interest rates. However, the SOR is influenced by multiple factors and subjected to currency exchange rates, making it more complicated and potentially volatile.

As the loan combines elements of SIBOR and SOR, it provides some level of diversification and hedging.

With that said, switching between rates may incur administrative charges or less favourable rates at the time of the switch.

Limited Promo* 3-month SORA 3.64%
OCBC 3-month SORA 3.74%
DBS 3-month SORA 3.74%
Maybank 3-month SORA 3.74%
Standard Chartered 3-month SORA 3.79%
UOB 3-month SORA 3.79%


Understanding the eligibility criteria for Building Under Construction (BUC) loans is essential if you wish to seek approval for one in Singapore. 

Key Criteria

Here are the key criteria to consider when you apply for a Building Under Construction (BUC) loan:

  1. Citizenship Status: You must be a Singapore citizen or permanent resident.
  2. Age: You should be at least 21 but not more than 75 years old by the end of the loan tenure.
  3. Income Requirements: Your monthly income should be sufficient to service the loan.
  4. Loan-to-Value (LTV) Ratio: The maximum LTV ratio for BUC loans is 75%, meaning you can borrow up to 75% of the property’s purchase price. Find out how a LTV limit can impact your property purchase.
  5. Credit History: A good credit score is crucial for loan approval.
  6. Down Payment: At least 20% of the purchase price is required as a down payment.

Tips for Improving Eligibility for BUC Loan in Singapore

If you find yourself struggling to meet the eligibility criteria, consider these tips to improve your chances of qualifying for a BUC loan:

  1. Optimise Your Credit Score: Maintain timely bill payments and keep existing debt low to boost your credit score.
  2. Reduce Existing Debt: Lowering your debt levels increases your capacity to repay the BUC loan. Consider consolidating debts to manage them better.
  3. Increase Your Down Payment: A higher down payment indicates your serious intent and could secure you a lower interest rate.
  4. Get Pre-Approved: Knowing your borrowing limit through pre-approval eases the property search and expedites the purchase process.
  5. Consult a Mortgage Broker: Consider working with a mortgage broker like DollarBack Mortgage to compare loan options and streamline the application process.


Navigating the BUC loan approval process can be complex. Below, we outline the key steps from securing an Approval-in-Principle to finally moving into your new home.

  1. Approval-in-Principle (AIP): Start by securing an AIP home loan from a bank to know your eligibility. This is valid for 14-30 days.
  2. House Shopping: Explore show flats and consider the price, amenities, and layout.
  3. Option to Purchase (OTP): If satisfied, make a 5% booking fee to receive an OTP.
  4. Sales & Purchase Agreement (S&P): While waiting for the S&P, research bank loans. On receiving your S&P, you’ll have 21 days to sign and return it.
  5. Bank Loan: Apply for a bank loan. Once approved, you’ll receive a Letter of Offer (LO).
  6. Legal Consultation: Consult a conveyancing lawyer to review the LO and forward it to them. 
  7. Stamp Duty: Pay the Buyer’s Stamp Duty (BSD) and any Additional Buyer’s Stamp Duty (ABSD).
  8. 15% Down Payment: Within eight weeks of receiving the OTP, make a 15% down payment, payable via cash or CPF.
  9. Progressive Payments: After the down payment, your bank disburses loans based on construction milestones.
  10. House Completion: Collect your keys when the Temporary Occupation Permit (TOP) is issued.
  11. Home Inspection: Before moving in, inspect your home for defects within the Defects Liability Period.


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Opting for a BUC property offers several advantages, such as early-bird discounts, modern amenities, and a wider choice of units. These properties often feature the latest in architectural design and smart-home technology. As they are new, they are more appealing to potential renters, and the resale value is often higher.

The main risks with BUC properties include project delays or even abandonment by the developer. To mitigate these risks, you should always opt for a reputable developer with a strong track record and consider insurance options that cover construction delays.

The Progressive Payment Scheme aligns your loan disbursements with specific construction milestones. This ensures you’re not paying for the entire property upfront, making it easier on your cash flow. As each construction stage is completed, a percentage of the loan amount is disbursed.

No, BUC loans are disbursed in instalments in line with the construction phases under the PPS. Here’s how it works: First, pay the 5% OTP fee in cash. Next, sign the Sale & Purchase Agreement and complete the remaining 15% down payment, using CPF funds if you wish. Finally, settle any applicable stamp duties, which can also be paid via CPF. After these steps are completed, your loan disbursal and monthly repayments will commence.

Yes, you can use your CPF savings for the initial down payment. However, the amount of CPF savings you can withdraw depends on the loan amount you qualify for. Once you’ve covered a percentage of your purchase price with your loan and paid for the mandatory 5% cash down payment, you may pay the remaining amount with your CPF funds in your Ordinary Account (OA).

Yes, you can apply for a BUC loan with multiple banks to obtain the best terms. However, frequent credit inquiries can affect your credit score, so managing your applications carefully and considering the timing is essential.

Absolutely. Once any lock-in periods are over, you can refinance your home loan. Shop around for better rates and weigh the potential benefits against any legal costs or break fees.

The completion timeframe is usually specified in the Sales and Purchase Agreement. However, delays can occur, so you should always account for flexibility in your planning.

Early repayments are usually allowed, but penalties, or ‘break costs’ often apply. Read more about how you can avoid early repayment penalties.

Yes, first-time homebuyers can apply for a BUC loan in Singapore, although specific eligibility criteria, like income and credit history, will still need to be met. Being a first-timer might also give you access to certain grants or lower stamp duties.

If the BUC project is delayed or abandoned, legal recourse is generally available to you based on the Sales & Purchase Agreement. You may be entitled to compensation or can potentially exit the contract, though specific outcomes depend on the terms agreed upon.

While Building Under Construction (BUC) loans are generally designed for residential properties, some banks or financial institutions may extend them for commercial properties. However, the terms may differ significantly.

Both joint tenancy and tenancy-in-common are generally acceptable forms of ownership for properties purchased using a BUC loan. Consult your lender for specific terms and conditions.

Yes, you can. However, the Progressive Payment Scheme may be adjusted to reflect the property’s current state, altering the disbursement and repayment schedule accordingly.

LTV ratios for BUC loans in Singapore are typically capped at 75%. However, these ratios can be influenced by various factors, such as your credit history, the property type, and other financial commitments you may have.


Secure the best BUC loan rates in Singapore by partnering with DollarBack Mortgage. Our expert team is on-hand to provide tailored loan comparison services that align with your needs, while ensuring that your mortgage package gives you the best value in the long term.


Refinance Private Property

As we have close working relationships with all major banks in Singapore and have a network of over 50 mortgage bankers, we are constantly updated with special refinance packages.

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Our mortgage consultants conduct a preliminary evaluation to calculate the Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) for your loan amount as quickly as 15 minutes.

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