Setting Up Your Mortgage for Success in 2026: How to Improve Your Approval Chances
As you enter 2026 with fresh financial resolutions, improving your mortgage approval chances should be a top priority if you're planning to buy property in Singapore. Your ability to secure a home loan directly impacts your purchasing power, the interest rate you'll pay, and ultimately, your long-term financial health. The good news? There are concrete, actionable steps you can take right now to strengthen your application and increase your likelihood of approval across Singapore's major banks.
This guide walks you through the specific strategies that matter most to lenders, the documentation you need to prepare, and how Homejourney can simplify your entire mortgage journey. Whether you're a first-time buyer or upgrading your property, understanding what banks look for—and how to position yourself as a low-risk borrower—is essential to achieving your 2026 home ownership goals.
Understanding What Banks Really Look For
Singapore banks evaluate mortgage applications using the Total Debt Servicing Ratio (TDSR), a framework set by the Monetary Authority of Singapore (MAS) that determines how much you can borrow.[2][3] Your monthly loan repayments cannot exceed 55% of your gross monthly income, which means banks scrutinize your income, existing debts, and credit history with precision.
Beyond TDSR, lenders assess your application across several critical dimensions:[2][3] your credit score (tracked by Credit Bureau Singapore), employment stability and income documentation, age (typically between 21 and 65 for loan repayment), and your down payment capacity. Each bank—whether DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, or others—sets its own internal criteria, which is why your profile might be approved by one bank but declined by another.
The key insight? Banks are fundamentally asking: "Can this person reliably repay the loan?" Everything they request—from your pay slips to your CPF statements—serves to answer this single question. By understanding this lens, you can strategically strengthen your application.
Five Proven Strategies to Boost Your Approval Odds
1. Improve Your Credit Score Before Applying
A good credit rating in your home country doesn't transfer to Singapore—you need to build local credit history.[2] If you're new to Singapore or have limited credit history, start immediately by obtaining a Singapore credit card and paying bills on time. Even one or two missed payments can significantly damage your credit score and reduce your borrowing capacity.
Check your credit report through Credit Bureau Singapore (CBS) before applying. If there are errors, dispute them immediately. A clean credit history can mean the difference between approval and rejection, or between a competitive 2.8% interest rate and a higher 3.2% rate.
2. Reduce Your Existing Debt
Your TDSR calculation includes all existing debts: car loans, credit card balances, personal loans, and any other monthly obligations.[2] If you're carrying S$500 monthly in car loan payments and S$300 in credit card minimums, that's S$800 counting against your borrowing capacity.
Before applying for a mortgage, prioritize paying down high-interest debts. Even reducing your credit card balance from S$15,000 to S$5,000 can meaningfully improve your TDSR ratio. This is one of the fastest ways to increase your approved loan amount without changing your income.
3. Document Your Income Meticulously
Banks require specific income documentation, and what you provide directly impacts your approved loan amount.[1][2] Standard employees need recent pay slips and two years of tax returns. Self-employed applicants face a 30% income haircut—if you declare S$5,000 monthly income, banks will only recognize S$3,500 for TDSR purposes.[2]
If you're self-employed, this is critical: maintain consistent, well-documented financial records for at least two years. Banks assess self-employed income based on average earnings from the past 12-24 months, so demonstrating stable or growing income is essential. Keep detailed business accounts, tax returns, and profit-and-loss statements organized and readily available.
4. Increase Your Down Payment
Singapore's Loan-to-Value (LTV) ratio is capped at 75%, meaning you must provide at least 25% down payment.[2] However, if you can save more—30%, 35%, or even 40%—you'll be viewed as a lower-risk borrower. A larger down payment demonstrates financial discipline and reduces the bank's exposure.
Beyond LTV limits, some banks offer better terms to borrowers with larger deposits. If you're currently saving 20% down, pushing to 30% could unlock better interest rates or faster approval processing. Use Homejourney's mortgage eligibility calculator to see how different down payment amounts affect your borrowing power and approved loan amounts across multiple banks.
5. Secure Stable Employment or Demonstrate Income Growth
Banks strongly prefer applicants with stable employment history.[2] If you're planning a job change, do it before applying for your mortgage—not after. Lenders want to see consistent employment, ideally at the same company for at least one year.
If you've received a promotion or salary increase, time your application to include this in your latest pay slip and tax return. Demonstrating income growth over the past two years strengthens your application considerably. Conversely, if you've changed jobs frequently or have gaps in employment, prepare a clear explanation for your bank contact.
The Documentation Checklist: What You Need to Prepare
Banks require extensive documentation, and missing even one item can delay your approval by weeks.[1] Prepare these documents now, before you start house hunting:
- Identity & Residency: Passport, NRIC, and proof of Singapore residency (if applicable)
- Income Documentation: Latest computerised pay slip, two years of tax returns (IR8A for employees, business accounts for self-employed), and two years of commission statements (if commission-based)
- Financial Statements: Latest CPF statement of account, CPF withdrawal statement for existing property (if applicable), and recent bank statements (typically last 3-6 months)
- Credit Information: Credit report from Credit Bureau Singapore (obtain this yourself to verify accuracy)
- Property Documents: Purchase agreement, option to purchase, and property valuation report (bank will arrange this)
- Insurance: Mortgage Reducing Term Assurance (MRTA) quotation—most banks require this[1]
- Additional for Self-Employed: Two years of business financial records, profit-and-loss statements, and business registration documents
Organize these documents in a folder now. When you're ready to apply, you'll have everything ready rather than scrambling to gather documents while under time pressure.
The Application Timeline: What to Expect
Understanding the mortgage application timeline helps you plan your 2026 property purchase strategically. The process typically unfolds in these stages:[1][2]
- In-Principle Approval (IPA): A few business days. This pre-approval checks your basic eligibility and tells you how much you can borrow. Get this before house hunting so you know your budget.
- Property Search & Offer: Variable timeline. Once you find a property and make an offer, you'll need the purchase agreement for your official application.
- Bank Valuation: 1-2 weeks. The bank sends a surveyor to verify the property's value. This typically costs S$300-600.
- Official Mortgage Application: 2-4 weeks. After valuation approval, you submit your complete application with all documentation. The bank conducts its full review.
- Final Approval & Completion: 1-2 weeks. Once approved, you sign final loan documents and complete the purchase.
Total timeline from IPA to completion: typically 6-10 weeks. However, delays can occur if documentation is incomplete or if the bank requests additional information. This is why preparing your documents now—in February 2026—gives you a significant advantage if you plan to purchase in Q1 or Q2.
Special Considerations for Different Borrower Profiles
Self-Employed and Freelancers
If you're self-employed, understand that banks apply a 30% income reduction to your declared earnings.[2] This means you need to demonstrate even stronger financial credentials. Focus on: maintaining two years of consistent, documented income; keeping business accounts and tax returns impeccably organized; and potentially having a guarantor if your income is variable.
Expats and Foreigners
Expats benefit from having permanent residency status and a Singapore bank account, both of which improve approval odds.[2] If you're a foreigner buying property, be aware of the 60% Additional Buyer's Stamp Duty (ABSD) unless you're exempt under Free Trade Agreements (US, Iceland, Liechtenstein, Norway, or Switzerland).[1][2] This significantly impacts your total purchase cost and down payment requirements.
Older Applicants
Banks use 65 years as the age cap for loan repayment.[2] If you're applying near this age, expect to negotiate a shorter loan tenure and larger down payment. A 55-year-old applying for a 35-year loan would have repayment extending to age 90, which most banks won't approve. Plan for a shorter tenure (20-25 years) if you're in this category.
How Homejourney Accelerates Your Approval Journey
Rather than applying to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other banks individually—each with separate applications and documentation requests—Homejourney simplifies the entire process through its integrated platform.
Calculate Your Borrowing Power First: Use Homejourney's mortgage eligibility calculator to instantly see how much you can borrow based on your income, existing debts, and down payment. This prevents wasting time on properties outside your reach and gives you a clear budget before house hunting.
Submit One Application, Reach All Banks: Through Homejourney's multi-bank application system, you submit your details once and they're automatically sent to all major partner banks. No need to fill out separate forms for each lender or repeat your documentation. This dramatically reduces application friction and increases your chances of approval across multiple banks simultaneously.
Leverage Singpass for Instant Auto-Fill: If you apply via Homejourney using Singpass, your income, employment, and CPF data auto-fills instantly. This speeds up processing significantly and reduces errors. Your application can be complete in minutes rather than hours.
Compare Offers Side-by-Side: Once banks respond with their offers, Homejourney displays them side-by-side so you can compare interest rates, loan tenure, and terms. You'll see exactly which bank offers the best deal for your situation, whether that's the lowest rate, fastest approval, or most flexible terms.
Track Your Application in Real-Time: Monitor the status of your application across all banks through one dashboard. Receive offers directly through the platform and understand exactly where you stand in each bank's approval process.
Access Expert Mortgage Brokers: When you apply via Homejourney's Bank Rates " style="color: inherit; text-decoration: none;">bank rates page, you're connected with Homejourney Mortgage Brokers who provide personalized guidance. They understand Singapore's mortgage landscape intimately and can advise on which banks are most likely to approve your profile, how to strengthen weak areas of your application, and how to time your purchase strategically.
Interest Rate Trends: Timing Your 2026 Application
Singapore mortgage rates are influenced by the 3-month and 6-month Singapore Overnight Rate Average (SORA), which fluctuates based on monetary policy and economic conditions. As you plan your 2026 mortgage, understanding current rate trends helps you decide whether to lock in a fixed rate or opt for a floating rate.
Most Singapore banks offer SORA-based floating rates or fixed rates for 1-3 year periods. The choice between fixed and floating depends on your risk tolerance and rate outlook. If you believe rates will rise, a fixed rate locks in your current payment. If you expect rates to fall, a floating rate could save you money.
Track live SORA rates and historical trends through Homejourney to time your application strategically. Applying when rates are favorable—or when you've found the right property—is more important than waiting for perfect rate conditions.
Common Mistakes That Derail Mortgage Approval
Mistake 1: Applying Without Pre-Approval Don't start house hunting without an In-Principle Approval (IPA). This pre-approval shows sellers and agents you're a serious buyer and prevents you from falling in love with a property you can't actually afford.
Mistake 2: Changing Jobs Right Before Applying Banks want to see stable employment. If you change jobs within 3-6 months of applying, some banks will decline your application or require additional documentation. Time major career changes for after your mortgage is approved.
Mistake 3: Taking on New Debt While Applying Don't apply for a car loan, personal loan, or credit card while your mortgage application is pending. Each new debt reduces your TDSR capacity and can push you below approval thresholds.
Mistake 4: Providing Incomplete or Inaccurate Documentation Missing documents delay approval by weeks. Inaccurate information (wrong dates, mismatched figures) raises red flags. Double-check everything before submitting.
Mistake 5: Not Comparing Multiple Banks Interest rates vary significantly across banks. A 0.3% difference on a S$500,000 loan over 25 years equals tens of thousands of dollars in total interest paid. Always compare offers from at least 3-4 banks.
