FAQ

Financial institutes assess factors such as your credit score, income stability, existing debt, either your Total Debt Servicing Ratio (TDSR) for private properties or Mortgage Servicing Ratio (MSR) for HDB/EC, and the property's loan-to-value ratio. A good credit history and stable income increase your chances of approval. All these factors vary from bank to bank. Our maximum home loan eligibility page offers a comprehensive guide to the factors that affect home loan applications.

In Singapore, the maximum amount you can borrow for a mortgage depends mainly on your Loan-To-Value (LTV) ratio, Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR), income, age, loan tenure, property type, and number of existing housing loans.

For private property, the LTV limit is generally up to 75%^* of the property's value or price, whichever is lower. If you already have an existing mortgage, the LTV limit is reduced to 45%^* for a second property loan. For HDB flats, the maximum LTV is also 75%, reduced from 80% as part of the government's measures to cool the HDB resale market.

However, LTV only determines the maximum loan percentage. Banks will also assess whether your income can support the monthly instalment. Under TDSR, your total monthly debt obligations are generally capped at 55% of your gross monthly income. For HDB flats and executive condominiums where MSR applies, your monthly property loan instalment is generally capped at 30% of your gross monthly income.

This means your actual mortgage amount may be lower than the LTV limit if your income, existing debts, age, loan tenure, or MSR/TDSR position does not support the full loan.

^* LTV limits may vary depending on property type, number of outstanding housing loans, loan tenure, borrower age and whether the property is HDB or private. Private property LTV limits were tightened under the 6 July 2018 cooling measures. HDB loan LTV was later reduced to 75% under the 2024 measures to cool the HDB resale market. More details on the 2018 MAS changes can be found here.

Total debt servicing ratio (TDSR) refers to the portion of a borrower’s gross monthly income that goes towards repaying the monthly debt obligations. This is to ensure prudent borrowing. A borrower's TDSR should be less than or equal to 55% for buying a private property. TDSR will change from time to time. Always check with our Mortgage Advisor for the latest ratio.

Fixed rates remain constant over a specific period, providing stability in monthly payments.

Floating rates are linked to Singapore Overnight Rate Average (SORA) and can change, affecting your monthly payment.

Whether should you choose a fixed or a floating rate package depends on many factors such as FED fund rate projection, size of the loan, type of property and holding period, etc.

Check out our page on Fixed Rate Mortgage Singapore for more considerations, as well as information on the latest fixed interest rate package.

Yes, foreigners can apply for mortgages, but the loan-to-value (LTV) ratio might be lower, usually around 70% of the property value.

Additional costs include stamp duties, legal fees, valuation fees, and insurance premiums. These costs can impact your total investment returns. One should also ask what is the penalty fees if the loan is redeemed early.

Many financial institutes allow prepayments and lump-sum payments. However, some mortgages might have restrictions or penalties for early repayment. It is best to ask before signing the Letter of Offer.

If you're unable to make payments, contact your lender immediately. They may offer options like loan restructuring or deferment to help you manage your financial situation.

A Singapore mortgage broker firm like us focus on getting the best deals that meet our clients’ requirements. Different banks offer different promotions at different times. We compare loan packages across various banks and make unbiased recommendation to you. In other words, we do the grunt work on your behalf so you get to enjoy the greatest savings. In addition, we have access to special rates that may not be known to the general public, which you can take advantage of. Other than the obvious savings benefits, you gain access to our bespoke mortgage and property review service. When executed correctly, this helps in meeting your financial and retirement goals.

See our guide to working with a mortgage broker in Singapore to understand more.

You will need to fill up an application form from the bank and provide the following:

• Front and back of your NRIC
• Property information from HDB myHDB Portal or IRAS My Property Portfolio
• Latest Notice of Assessment and 12 months CPF Contribution History
• Latest 3 months’ salary crediting account statements (additional documents required for customers working overseas)

Mortgage refinancing involves acquiring a new loan package from a different financial institution, whereas repricing entails converting an existing package to a new one within the same bank. As you approach the end of your lock-in period, it is advisable to consider both options to avoid higher rates thereafter. While repricing provides administrative convenience, delving into refinancing is frequently beneficial, given its numerous advantages.

In Singapore, banks generally do not offer a revolving Home Equity Line of Credit (HELOC) like those available in the US. Instead, the closest local equivalent is a Home Equity Loan (also called an Equity Term Loan, Cash-Out Refinancing or Mortgage Withdrawal Loan), where you receive a lump sum of cash secured against the equity in your private property.

While a HELOC is a revolving line of credit that uses your home as collateral — similar to a credit card — Singapore’s home equity loans are structured more like a traditional mortgage, with fixed monthly repayments over a set tenure.

👉 Learn more about how a Home Equity Loan works in Singapore and whether it suits your financing needs.