Cooling Measures 2026: Financing FAQs | Homejourney

Singapore's property cooling measures, including those evolving into 2026, directly affect home financing through tighter LTV limits, higher ABSD rates, and stricter TDSR thresholds. These changes reduce borrowing power and increase upfront costs for buyers and investors.

At Homejourney, we prioritize your safety and trust by verifying the latest regulations from MAS and HDB, helping you navigate these impacts confidently. This cluster article answers key questions on cooling measures 2026 financing effects, linking back to our pillar guide on Singapore Property Cooling Measures 2026: Impact on Financing & Your Borrowing Power Singapore Property Cooling Measures 2026: Impact on Financing & Your Borrowing P... for full details.

What Are the Key Cooling Measures Affecting Financing in 2026?

The core Singapore property cooling measures 2026 impact on financing stem from policies since 2021, with updates in 2023 and 2024 carrying into 2026. LTV for HDB loans dropped from 80% to 75% in August 2024, meaning buyers need 5% more downpayment on public housing[1].

TDSR tightened to 55% from 60% in 2021, limiting total debt to 55% of income, assuming a 4% interest rate for bank loans (up from 3.5%)[1]. ABSD rates rose sharply: Singapore Citizens pay 20% on second properties (from previous levels), 30% on third; PRs 30% on second, 35% on third; foreigners 60% on any[1].

These persist into 2026 without announced reversals, though market talks suggest possible ABSD easing for foreigners if demand cools[3]. Use Homejourney's bank rates page to check how these alter your eligibility across DBS, OCBC, UOB, and more.

How Do LTV Changes in 2026 Impact Your Mortgage?

LTV changes 2026 mean HDB loans cover only 75% of value, requiring 25% downpayment (10% cash, 15% CPF/cash)[1]. For a S$500,000 BTO flat, that's S$125,000 down vs S$100,000 previously—S$25,000 more upfront.

Bank loans cap at 75% LTV for most, but first-time HDB buyers get 90% under conditions. Example: S$1M condo needs S$250,000 down (25%), with ABSD adding S$200,000+ for second-time citizens. This squeezes budgets, especially with MSR (HDB's version of TDSR) at 30% of income.

Actionable step: Calculate via Homejourney's mortgage calculator. Input income S$10,000/month, debts S$1,000: TDSR limits loan to ~S$1.2M at 4% stress rate, down from higher pre-2021.

ABSD Impact on Mortgage: What Buyers Need to Know

ABSD impact mortgage calculations hit hardest for investors. Second property ABSD at 20% for citizens isn't financeable—pay upfront, reducing CPF/cash for downpayment[1]. For S$1.5M investment, S$300,000 ABSD leaves less for 25% LTV down (S$375,000 total cash/CPF needed).

First-timers escape ABSD (0%), but upgraders face it. Foreigners' 60% ABSD on S$2M property = S$1.2M cash, making financing near-impossible without massive equity. Market speculation notes potential 2026 rollback to boost CCR/OCR sales[3].

Insider tip: Time purchases pre-Budget announcements; check Homejourney bank rates for partners like HSBC or Maybank offering competitive packages despite ABSD.

TDSR and MSR Under Cooling Measures: Real Examples

TDSR at 55% assumes 4% bank loan rates, MSR 30% for HDB. Earning S$8,680/month qualifies for S$1M loan at 30-year tenure[1]. Add S$2,000 car loan, borrowing drops to S$900,000.

The chart below shows recent interest rate trends in Singapore, influencing TDSR stress tests:

Rates hovering ~3-4% mean real payments align with stress, but hikes could strain. Compare fixed vs floating on Homejourney—DBS at 3.5% promo, UOCB SORA+1%.

Practical Steps to Navigate 2026 Cooling Measures

1. Assess Eligibility: Use Homejourney's calculator with Singpass for instant CPF/income pull.
2. Compare Loans: View DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank on bank-rates.
3. Minimize ABSD: Buy first property or form joint entity strategically (seek advice).
4. Refinance Smartly: If TDSR binds, refinance via Homejourney's multi-bank submission.
5. Search Budget-Match: Filter properties on property search post-calculation.

Disclaimer: This is general info; consult Homejourney Mortgage Brokers or advisors for personalized advice. Regulations from MAS/HDB[1].

Singapore Property Cooling Measures 2026 Impact on Financing: Frequently Asked Questions

Will cooling measures loosen in 2026?

No confirmed changes, but experts speculate ABSD cuts for foreigners if market cools[3]. TDSR/MSR likely stay at 55%/30%[1]. Track via Homejourney for updates.

How much does ABSD reduce my loan amount?

ABSD is non-financeable, so S$200,000 ABSD on S$1M second property means less CPF for 25% down, shrinking effective budget by 20%+.

Can I still get 90% LTV in 2026?

Yes, for first-time HDB buyers via banks under conditions; HDB capped at 75%[1]. Use our eligibility tool.

Impact on refinancing?

TDSR applies; existing loans may need recalibration. Homejourney simplifies with multi-bank apps—see Best Home Loan Rates Jan 2026 Best Home Loan Rates Singapore Jan 2026: Homejourney Comparison .

HDB vs Bank Loan in 2026?

HDB: 75% LTV, 2.6% fixed[1]; Banks: Up to 90%, variable SORA. Compare on Homejourney for best fit.

Ready to buy safely? Start with Homejourney's bank rates comparison—apply via Singpass to DBS, OCBC, and more in one go. Trust Homejourney for verified insights and seamless financing. Explore our pillar guide for deeper analysis.

References

1. Singapore Property Market Analysis 1 (2026)
2. Singapore Property Market Analysis 3 (2026)