Pre-Selling Condo Payment Terms: Spot DP, Lump Sum, Balloon

Pre-selling condo payment terms are printed on a single sheet the agent slides across the table, and that sheet decides more about the purchase than the brochure does. The same unit can be offered under five schemes: spot cash, spot down payment, stretched down payment, a version with lump sums, deferred cash. They differ in price, in how much cash is needed and when, and in how exposed the buyer is if a loan is refused at turnover. This guide translates each term, runs all of them on one example unit, and lists the questions to ask before choosing.

The parts every scheme is built from

Three pieces appear in every computation sheet. The reservation fee holds the unit while the papers are prepared; it typically runs ₱20,000 to ₱50,000 (about $319 to $798 / €285 to €712), is usually credited to the down payment and is generally not refundable. The down payment, also called equity, is typically 10% to 30% of the contract price. The balance is everything else, due at or near turnover.

A scheme is simply a rule for when the down payment and the balance are paid. Our guide to how much down payment you really need covers the upfront cash in detail; this article is about choosing between the schemes.

One unit, five ways to pay

Take a pre-selling unit with a contract price of ₱5,000,000 (about $79,800 / €71,200), a 20% down payment of ₱1,000,000 (about $16,000 / €14,200) and turnover in 36 months. The figures are an illustration, and discounts are left out because each developer sets its own.

Spot cash. The whole ₱5,000,000 (about $79,800 / €71,200) is paid shortly after reserving. Developers reward it with their largest discount. It suits a buyer with the money in hand and no better use for it, and it carries the most exposure to the project itself, since everything is paid years before the unit exists.

Spot down payment. The ₱1,000,000 (about $16,000 / €14,200) is paid at once, for a smaller discount, and the ₱4,000,000 (about $63,800 / €57,000) balance waits for turnover. Monthly cash flow is free during construction, at the cost of one large payment at the start.

Stretched down payment. The ₱1,000,000 (about $16,000 / €14,200) is spread without interest over the construction period: 36 payments of about ₱27,800 (about $444 / €396). This is what "no spot DP" means in an advertisement. There is usually no discount, and it is the scheme most buyers take, because the monthly amount resembles rent.

Stretched down payment with lump sums. The monthly amount is cut by moving part of the equity into scheduled larger payments. For example, half the equity over 36 months, about ₱13,900 (about $222 / €198) a month, and the other half in two lump sums of ₱250,000 (about $3,990 / €3,560) on fixed dates. The monthly figure looks light; the lump sums are where buyers fall behind, so read the dates before the amounts.

Deferred cash. The entire ₱5,000,000 (about $79,800 / €71,200) is paid in equal installments over a fixed period with no bank involved, about ₱138,900 (about $2,220 / €1,980) a month over 36 months. It avoids loan interest and suits buyers with high, steady income, including some working abroad.

A balloon payment is the same idea as a lump sum, moved to the end: a large final amount after a run of small ones. Ask whether the sheet in front of you has one and when it falls.

The balance at turnover

In every scheme except spot cash and deferred cash, the large remainder falls due at turnover: ₱4,000,000 (about $63,800 / €57,000) in the example. Buyers settle it in one of four ways: cash, a bank loan, a Pag-IBIG loan, or the developer's in house financing, which is the quickest to approve and usually the most expensive. Our comparison of Pag-IBIG, bank and in house financing sets the three loan routes side by side.

This is the step that sinks purchases. The loan is applied for years after the reservation, on the income and credit record the buyer has at that time, not the ones they had on the day they signed. A buyer who paid every installment can still be refused, and the contract then expects the balance in cash or on in house terms. Check today what monthly payment the balance implies, using the loan calculator, and whether your income supports it under the rule of thumb in our guide on the salary needed to buy a condo.

What the sheet leaves out

The contract price is rarely the whole bill. Taxes and miscellaneous fees are charged on top and are often collected near turnover, on a separate line or a separate sheet. Our guide to the hidden costs of buying a condo lists them, and our notes on a first visit to a pre-selling showroom explain why the price on the board and the price you pay differ.

Late payments carry penalties under the contract to sell. And if payments stop altogether, the law gives installment buyers a floor: after at least two years of installments, a grace period and, if the contract is cancelled, a refund of at least 50% of what was paid, as our guide to the Maceda Law explains. Before two years, the protection is only a grace period.

How to choose

Ask for every scheme in writing with its discount, then compare totals, not monthly amounts. A discount for spot payment is worth taking only if it beats what the same money would earn or save elsewhere over the construction period. Choose a schedule you could keep if one income in the household stopped for three months. Treat lump sums as debts with dates. Confirm in writing that the reservation fee is credited to the down payment. And before paying anything, confirm that the project has a license to sell, following our guide on how to verify a DHSUD license to sell.

Once discounts are counted, the cheapest scheme is usually spot cash, and the easiest is the long stretch with no lump sums. Most buyers are best served somewhere in between, by the schedule they are certain they can finish.

This article is general information, not financial advice. The example figures are illustrative; discounts, terms and fees are set by each developer, so rely on the written computation sheet and the contract to sell.

Dollar and euro figures are approximate conversions at ₱62.7 per US dollar and ₱70.2 per euro (ECB reference rates, 2026-10-05).