Payment plans and finance
Down payment plan
A payment plan where the buyer pays most of the price upfront, often 90% or more within weeks of booking, usually in exchange for a lower price.
Also called: DPP, upfront payment plan
Under a down payment plan the buyer pays a large share early, typically after the agreement is registered. In exchange the developer offers a lower rate. It suits buyers with cash or loan eligibility who want a better price.
The pricing difference between DPP and CLP is effectively a discount for early money. Work it out as a financing cost for the money received early, and keep it within your approval policy.