A quick n simple explanation on Progressive Payment and loan concern:
Progressive payment takes effect whether on loan or cash purchase.
EG: 500k property, 80% loan 20% downpayment (usually 20% to be paid within 2-3 mths)
Day 1: Booking (can be RM500/1k/5k depending on developer)
Day 14: (Usually booking states within 14 days) Sign S&P and pay 10% downpayment less booking fee
Approximately 2 mths later, upon completion of sales documentation, pay balance 10% downpayment.
Thereafter your loan kicks in. The developer will ask your bank for the remaining 80%, once 80% is paid to developer by the banks, your monthly installment starts.
Now, that is for a fully completed property, for common cases for most of us here where our properties are still under contruction, assuming the above scenario:
*RM500k property, 80% loan
*Currently house is only 50% built (ie. construction of house is only 50%)
*After paying 20% d/payment, there is a balance of 30%
*Developer will then ask your bank for the 30% approximately 2 mths after your 1st booking.
*Banks will then pay the developer 30% and your installment will start, however since its only 30% of total purchase price, your installment will only be 30% (eg. if your eventual full mthly installemnt is RM2k/mth, now you only pay RM600 p/mth)
*Usually every 2-3 mths developer will will ask your banks for more $, eg 3 mths later the house reaches 70% to contruction completion, so developer will ask your bank for additional 20%, so your mhtly installment progressively increases.
Thus, this is what you call 'Progresive Payment'. However do note that banks do allow payment of interest only. Eg. if your current progressive is RM600, maybe out of the 600, 100 is for interest payment. So u only pay RM100 p/mth, this will go all the way until the day u collect your hosue keys, then your full mthly installment kicks in.
Also, last but not least, if its a cash purchase, then progresively, every time the developer bills you for an amount, 20%, 30% 10%......since u have no loan then you will have to pay the said amount directly to the developer, this is also progresive, only diff is u pay the full amount yourself instead of the banks paying for u....
Ok, hope its clear?