Know your real budget before you view
TDSR, MSR, and the stress-test rate together decide your ceiling. Working that out first stops you falling for a property you were never going to be approved for.
Buying or refinancing
Home Loan Singapore: Mortgage Rates, LTV and TDSR Explained
Credible.sg is a loan-matching platform, not a bank or a mortgage broker — a home loan itself comes from a bank or from HDB. This guide explains how Singapore mortgages work so you can walk into that conversation prepared. For listings and home loan comparison, head to our property site. For the cash costs a mortgage will not cover, licensed lenders on Credible can help.
- Understand LTV, TDSR, MSR, and the stress-test rate before you commit to a property
- Compare HDB concessionary, bank fixed, and SORA-linked floating packages
- Plan for the costs a mortgage excludes: stamp duty, renovation, and furnishing
Illustrative figures. Your actual offers depend on your profile.
75% typical maximum LTV, first housing loan
55% TDSR ceiling on total monthly debt
30% MSR ceiling for HDB flats and ECs
4% stress-test rate used in the calculation
How it works
From one application to money in hand
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Work out what you can actually service
Your borrowing limit is set by TDSR and, for an HDB flat or EC, by MSR as well. Both are calculated against a stress-test interest rate rather than the rate you will be offered, so run the numbers before you view anything.
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Get your eligibility confirmed in writing
An HDB Flat Eligibility (HFE) letter for an HDB purchase, or an In-Principle Approval from a bank for a private property. Sellers and agents take a documented buyer far more seriously than a hopeful one.
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Compare home loan packages properly
Fixed against floating, the lock-in period, and what the rate reverts to afterwards. our property site handles listings and home loan comparison side by side.
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Plan the cash a mortgage will not cover
Stamp duty, legal and valuation fees, renovation, and furnishing all fall outside the loan. This is where Credible.sg fits: one application, offers from licensed lenders, no cost to compare.
Your options
HDB concessionary, bank fixed, or SORA-linked floating
Singapore home loans come in three broad shapes, and the right one depends on the property type and how much rate movement you can tolerate. HDB concessionary loans are available only for HDB flats and only to buyers who meet HDB eligibility. Bank loans are open to both HDB and private purchases. Since SIBOR was retired, floating bank packages are pegged to SORA, the Singapore Overnight Rate Average, which is a backward-looking published rate rather than a rate set by any single bank.
| Package type | How the rate behaves | Available for | Suits you if |
|---|---|---|---|
| HDB concessionary loan | Pegged at a fixed margin above the CPF Ordinary Account rate and revised with it | HDB flats only, subject to HDB eligibility | You want stability and predictable instalments over the long term |
| Bank fixed rate | Locked for an initial period, then reverts to a floating rate | HDB and private property | You want certainty during the lock-in and will review before it ends |
| Bank floating (SORA-linked) | Moves with the published SORA benchmark plus the bank’s spread | HDB and private property | You can absorb rate movement and want to benefit if rates fall |
Loan-to-value limits, TDSR and MSR ceilings, stamp duty rates, and the stress-test rate are set by MAS, HDB, and IRAS, and they change when property cooling measures are revised. Treat every figure on this page as a starting point for your own research, not as advice or an offer. Confirm the current rules directly with MAS, HDB, IRAS, or your bank before you commit to a purchase. Credible.sg does not arrange home loans.
What determines how much you can borrow
You can apply if you are…
- Loan-to-value limit — the share of the property price a lender will finance. It is lower for a second or subsequent housing loan, and lower again if the tenure is long or extends past retirement age
- Total Debt Servicing Ratio (TDSR) — all your monthly debt repayments, home loan included, measured against gross monthly income
- Mortgage Servicing Ratio (MSR) — an additional, tighter ceiling that applies only to HDB flats and Executive Condominiums
- The stress-test rate — TDSR and MSR are computed at a floor rate set by MAS, not at the rate your bank quotes you, so your real limit is lower than it first appears
Documents to have ready
- NRIC, and your latest Notice of Assessment or recent payslips and CPF contribution history
- Your CBS credit report, since existing card balances and loans consume TDSR headroom
- HFE letter for an HDB purchase, or In-Principle Approval from a bank for private property
- Your CPF Ordinary Account balance, which can fund part of the downpayment and the instalments
Why Credible.sg
Borrowing, with the guesswork removed
Compare packages, not just headline rates
A low teaser rate that reverts sharply after the lock-in can cost more than a higher stable one. our property site puts listings and home loan options in one place.
Cover the cash a mortgage excludes
Stamp duty, legal fees, renovation, and furnishing are all out of pocket. Compare offers from licensed lenders on Credible.sg for the gap, free and with no obligation.
How much can you actually borrow?
Three separate limits apply at the same time, and the tightest one wins. The loan-to-value limit caps the proportion of the purchase price a lender will finance, which fixes your minimum downpayment. The Total Debt Servicing Ratio caps your total monthly debt repayments as a share of gross monthly income. And for HDB flats and Executive Condominiums, the Mortgage Servicing Ratio applies a second, tighter cap on the housing loan repayment specifically.
The detail that catches most buyers out is the stress test. TDSR and MSR are not calculated using the rate your bank is offering you. They are calculated at a floor rate set by MAS, which is deliberately higher, so the regulator can be confident you would still cope if rates rose. Your genuine borrowing capacity is therefore meaningfully lower than a quick calculation at today’s advertised rate would suggest.
Existing debt eats into the same allowance. Car loans, personal loans, and revolving credit card balances all count towards TDSR, which is why clearing or reducing them before applying can materially raise the mortgage you qualify for. If several debts are holding you back, a debt consolidation loan can simplify the picture, though it does not by itself reduce what you owe.
Fixed or floating, and what happens after the lock-in
A fixed-rate package holds your rate steady for an agreed initial period, typically a couple of years. A floating package tracks SORA plus the bank’s spread and moves as the benchmark moves. Neither is universally better. Fixed buys predictability at a modest premium; floating passes rate falls to you and rate rises as well.
The number that matters most is often not the headline rate at all, but what the package reverts to when the lock-in ends. Banks compete hard on the teaser and then revert to a considerably less attractive rate, relying on inertia. A package with a slightly higher initial rate and a gentler reversion can easily cost less across the full tenure.
This is why a diary reminder several months before your lock-in expires is worth more than most rate-hunting. At that point you can reprice with your existing bank, which is usually simpler and cheaper, or refinance to another bank, which takes more paperwork but often secures a better rate. Check for early-repayment penalties and any clawback of legal subsidies before you move.
The cash you need that the loan will not cover
Your mortgage covers a share of the purchase price and nothing else. The downpayment is the largest gap, and a portion of it must be paid in cash rather than from CPF. On top of that sits Buyer’s Stamp Duty, plus Additional Buyer’s Stamp Duty if this is not your first residential property, and ABSD in particular can run to a very substantial sum.
Then come the costs people underestimate. Conveyancing and legal fees, a valuation fee, fire insurance, and, for a resale flat, the cash-over-valuation if the agreed price exceeds the valuation. None of these can be borrowed against the property, and CPF cannot be used for all of them.
Renovation and furnishing usually follow immediately, at the exact moment your savings are lowest. Our sister site reno.credible.sg covers renovation financing specifically. For the other gaps, comparing offers from licensed lenders through Credible.sg is free, and you are under no obligation to accept any of them.
HDB concessionary loan or a bank loan?
If you are buying an HDB flat and meet HDB’s eligibility conditions, you have a choice most private buyers do not. The HDB concessionary loan is pegged at a fixed margin above the CPF Ordinary Account interest rate, so it moves rarely and predictably. It also allows a smaller cash outlay at the point of purchase, which matters if your savings are tight.
Bank loans have at times been cheaper than the HDB rate and at other times more expensive, depending on where interest rates sit in the cycle. The trade-off is volatility: a bank package will reprice at the end of its lock-in, and a floating one moves continuously. You also cannot switch from a bank loan back to an HDB concessionary loan later, so the decision runs in one direction only.
For most HDB buyers the honest answer depends on how much rate movement would genuinely disrupt the household budget, not on which option looks marginally cheaper this quarter. Model both at a rate meaningfully above today’s and see which one still works.
Preparing your credit profile before you apply
A mortgage is the largest credit decision most people go through, and banks screen it accordingly. Pull your own Credit Bureau Singapore report well before you apply, because errors take time to dispute and a weak grade is worth several months of repair work. Our guide to understanding your CBS credit score explains what lenders see.
In the six to twelve months before applying, avoid opening new credit facilities, keep card balances well below their limits, and never miss an instalment. A cluster of credit applications shortly before a mortgage application is a particularly poor signal, since it reads as strain at exactly the wrong moment.
If your credit history is already damaged, be realistic. Banks apply their strictest screening to housing loans, and a weak file is more likely to reduce your approved amount than to raise your rate. Our page on borrowing with bad credit in Singapore sets out what a weaker profile changes and how to rebuild it.
Common questions
Home Loan FAQs
Still unsure about something? Message us on WhatsApp and a real person will walk you through it.
How much downpayment do I need for a home in Singapore?
The downpayment is whatever the loan-to-value limit does not cover, and a defined portion of it must be paid in cash rather than from your CPF Ordinary Account. The LTV limit is lower for a second or subsequent housing loan, and lower again where the loan tenure is long or runs past retirement age. Because these limits are revised whenever cooling measures change, confirm the current figures with MAS or your bank before budgeting.
What is the difference between TDSR and MSR?
TDSR caps all your monthly debt repayments combined, including car loans, personal loans, and credit card minimums, as a proportion of gross monthly income. MSR is a separate and tighter cap that applies only to HDB flats and Executive Condominiums, and it looks solely at the housing loan repayment. Where both apply, you must satisfy each of them, so the stricter one sets your real limit.
What is SORA and why did it replace SIBOR?
SORA is the Singapore Overnight Rate Average, the volume-weighted average rate of actual overnight interbank borrowing transactions, published daily by MAS. It replaced SIBOR because it is derived from real transactions rather than from bank submissions, which makes it harder to influence and more transparent for borrowers. Floating home loan packages in Singapore are now quoted as SORA plus the bank’s spread.
Should I reprice with my current bank or refinance to a new one?
Repricing means moving to a different package within your existing bank, which involves less paperwork and usually a smaller fee. Refinancing means moving your loan to another bank, which takes longer and involves legal costs but often secures a better rate. Compare the total saving against the switching cost, and check whether your existing package carries an early-repayment penalty or a clawback of legal subsidies before deciding.
Can I use my CPF for the downpayment and monthly instalments?
CPF Ordinary Account savings can generally be used for part of the downpayment and for ongoing monthly instalments, subject to withdrawal limits and the remaining lease of the property. A portion of the downpayment must still be paid in cash. The rules differ between HDB and private purchases and are periodically revised, so check the current position with the CPF Board before you rely on a particular figure.
Does Credible.sg arrange home loans or mortgages?
No. Credible.sg matches borrowers with licensed lenders for personal loans, and a mortgage is a different product that comes from a bank or from HDB. This page is a guide, not an offer. For home loan comparison and property listings, visit our property site. Credible.sg can help with the cash costs around a purchase that a mortgage does not cover.
What costs should I budget for beyond the loan itself?
Budget for the cash portion of the downpayment, Buyer’s Stamp Duty and any Additional Buyer’s Stamp Duty, conveyancing and legal fees, a valuation fee, and fire insurance. For a resale HDB flat, add any cash-over-valuation. Renovation and furnishing then follow, and none of these can be financed against the property itself.
Learn with Credible
Guides to read before you borrow
Bad Credit Loan Singapore: Compare Offers From Licensed Lenders
Read the guide →Debt Consolidation Loan Singapore: Combine Your Debts, Find the Lowest Rate
Read the guide →Understanding Your Credit Score in Singapore: CBS Explained
Read the guide →Personal Loan Singapore: Compare Offers From Licensed Lenders
Read the guide →Loan Terms Explained: A Singaporean’s Guide to Financial Jargon
Read the guide →Financial Planning and Wellness: The Path to Prosperity in Singapore
Read the guide →Browse by topic
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Buying a home? Plan the cash the mortgage will not cover
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