Residential Home Loan Singapore - Affordability Check & Loan Advisory

TDSR is a MAS affordability rule that measures whether a borrower can manage all monthly debt obligations after taking the new property loan. It includes the new mortgage instalment plus existing debts such as car loans, personal loans, credit-card minimum payments, and other property loans.

For property loans granted by financial institutions, the current TDSR threshold is 55% of recognised gross monthly income.

MSR is a stricter affordability rule for HDB flats and Executive Condominiums within their Minimum Occupation Period. It looks only at monthly property-loan repayments, not all debts, and caps those repayments at 30% of recognised gross monthly income.

If you are buying an HDB flat with a bank loan, you must pass both MSR and TDSR. For private property, MSR does not apply, but TDSR and LTV rules still apply.

Fixed monthly income is generally counted at full value. Variable income, such as bonus, commission, rental income, and self-employed income, is usually subject to at least a 30% haircut before it is used for TDSR or MSR calculations.

For bonus or commission income, banks usually convert the annual or average amount into a monthly figure before applying the haircut. For self-employed borrowers, banks will review documents such as Notice of Assessment, financial statements, bank statements, or management accounts before deciding the recognised income.

LTV measures the property loan amount against the property price or market value, whichever is lower. For individual borrowers with no outstanding housing loan, the standard maximum bank LTV is up to 75%, subject to age and loan-tenure conditions.

The available LTV may be lower if you already have outstanding housing loans, if the proposed loan tenure is too long, or if the loan extends beyond the borrower reaching age 65.

For individual borrowers, the standard LTV limit depends on how many outstanding housing loans you already have. The lower LTV applies if the loan tenure exceeds 25 years for HDB flats, exceeds 30 years for other residential property, or the loan period extends beyond age 65.

A lock-in period is the period during which the bank may charge a penalty if you fully redeem, refinance, sell the property, or make repayments beyond the package's allowed amount. It is common for fixed-rate packages and some promotional packages to have a lock-in period.

The lock-in period affects flexibility. If you may sell, refinance, or make large partial repayments soon, a shorter lock-in or a more flexible package may be more suitable. You should also check whether legal subsidies, valuation subsidies, or fire insurance discounts can be clawed back if you exit early.

The maximum amount you can borrow for a home loan in Singapore depends primarily on your Total Debt Servicing Ratio (TDSR). MAS sets the TDSR cap at 55% of your gross monthly income, meaning your total monthly debt obligations - including the new loan - cannot exceed 55% of what you earn. For HDB flats, an additional Mortgage Servicing Ratio (MSR) of 30% also applies. On top of this, the Loan-to-Value (LTV) limit determines how much of the property price a bank will finance - typically 75% for a first residential property loan. Your age, existing loan commitments, and whether you have other outstanding mortgages will all reduce this figure. Use our TDSR calculator above to get an estimate based on your actual income and debt profile.

A fixed rate home loan in Singapore locks your interest rate for a defined period - usually 2 to 5 years - giving you predictable monthly repayments regardless of market movements. A SORA-linked loan floats with the Singapore Overnight Rate Average, meaning your rate and repayment amount can change as market conditions shift. Fixed rates typically carry a small premium over SORA rates at the time of borrowing, but they protect you from rate spikes. Choosing between the two depends on your risk tolerance, how long you plan to hold the property, and where you believe rates are heading. We help clients compare current bank package terms and assess which structure fits their financial profile.

Refinancing your home loan in Singapore typically makes sense when your existing loan's lock-in period has ended and a lower rate package is available elsewhere. Most lock-in periods run 2 to 3 years. Once this expires, you can approach other banks or your existing bank for repricing. Key things to check before refinancing: whether the interest savings outweigh legal and valuation fees (usually S$2,000-S$3,500 for a private property), whether your property valuation has changed significantly, and whether your income profile still qualifies under current TDSR rules. Speak with us before refinancing - we can run a side-by-side comparison across multiple bank packages.

Yes. CPF Ordinary Account (OA) savings can be used for the down payment and monthly loan instalments on a residential home loan in Singapore, subject to CPF withdrawal limits and the Valuation Limit (VL) on the property. For private properties, you can use CPF OA up to the VL or up to your Available Withdrawal Limit, whichever is lower. Critically, if you plan to sell the property later, CPF usage (plus accrued interest at 2.5% per annum) must be refunded to your CPF account from the sale proceeds. This affects your actual cash-in-hand at the point of sale - something many buyers underestimate at the planning stage.

If you already have an outstanding home loan in Singapore, your eligibility for a second residential mortgage is affected in two ways. First, the LTV cap on the second property drops from 75% to 45% - meaning you need a larger cash and CPF down payment. If the loan tenure exceeds 30 years or extends past age 65, it drops further to 25%. Second, your TDSR calculation must include the monthly instalment on the existing loan, which reduces how much you can borrow on the new property. This makes upfront financial planning critical before committing to a second purchase, especially given the Additional Buyer's Stamp Duty (ABSD) that also applies for Singapore Citizens buying a second property.

The Total Debt Servicing Ratio (TDSR) for home loans in Singapore is currently capped at 55% by MAS. This means your total monthly debt commitments - including the new property loan, car loans, credit card minimum payments, and personal loans - must not exceed 55% of your recognised gross monthly income. Fixed income counts in full, while variable income such as bonuses, commissions, and rental income is recognised at 70% after a 30% haircut. Our TDSR calculator above runs this check for your specific profile.

Permanent Residents (PRs) and eligible foreign nationals can apply for residential home loans in Singapore from local and foreign banks, subject to the same TDSR and LTV rules that apply to Singapore Citizens. However, PRs buying an HDB resale flat cannot get an HDB concessionary loan - they must use a bank loan. For private property, PRs and foreigners face higher Additional Buyer's Stamp Duty (ABSD): PRs pay 5% on a first purchase and 30% on subsequent purchases, while foreigners pay 60% on any residential purchase unless an exemption applies.