What is a Home Equity Loan (Equity Term Loan / Cash Out Refinancing / Mortgage Withdrawal Loan) in Singapore
A Home Equity Loan in Singapore — also known as an Equity Term Loan, Mortgage Withdrawal Loan, or sometimes referred to as Cash-Out Refinancing — is a loan secured against the value of the borrower's residential property. It is a financing option that allows homeowners to unlock the value tied up in their property. Equity refers to the difference in the market value of your property and the outstanding mortgage. The equity will gradually increase as you service your mortgage over the years. An increase in your property value also add to the equity. This equity can be substantial especially if you have held the property for many years.
By borrowing against the equity (the difference between your property’s current market value and your outstanding mortgage), you can access additional funds for personal, investment, or business needs.
Banks in Singapore typically disburse the loan as a lump sum, with repayment structured over a fixed term, similar to a regular housing loan. The maximum amount you can borrow depends on factors such as your property’s value, the outstanding loan balance, and prevailing regulatory limits. Understand more in our How Much Can You Loan section.
Home Equity Loan Rates in Singapore
As of Oct 2026
Subject to change. Terms and conditions apply
Find out more about Home Equity Loan Options
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Home Equity Loan - How Much Can You Loan?
MAS set the maximum loan-to-value (LTV) ratio, as well as the maximum loan tenure (capped at 35 years) for Home Equity Loans in an update in 2018. Following that, the loan amount you can access through an equity term loan depends on several factors:
- Your current property value according to lender’s valuation
- Your outstanding mortgage balance
- CPF usage and accrued interest
- Loan-to-Value (LTV) limit set by MAS. Currently it is at 75%* if you have no outstanding housing loans for other residential properties or 45% if you have 1 or more outstanding housing loans for other residential properties
- Your TDSR limit (applies for borrowers who are individuals, sole proprietorships or shell companies). TDSR does not apply if the mortgage withdrawal loan amount, together with any other outstanding loan secured on the same property, is 50% or less of that property's current market valuation.
These limits apply to home equity loan applications made on or after 6 July 2018.
Home Equity Loan Example
| Current property valuation: | $2,000,000 |
| Balance loan: | $500,000 |
| LTV: | 75% |
| AGE | 50 |
| CPF Usage: | $350,000 |
| Max Loan: | 75% x $2,000,000 -$500,000 - $350,000 = $625,000 |
| Max Tenure: | 75-50 = 25 |
Frequently Asked Questions about Home Equity Loans
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