First Time Home Buyer Singapore: Complete Mortgage Guide 2026 (Homejourney)
If you are a first time home buyer in Singapore, your mortgage is the single biggest financial decision you will make. This 2026 beginner mortgage guide is written for Singapore buyers who want clear, practical, and safe advice before committing to their first property mortgage.
Homejourney’s mission is to create a trusted, safe environment for every buyer. That means transparent explanations, verified numbers from official sources, and realistic examples based on how Singaporeans actually buy homes today.
Table of Contents
- Chapter 1: Mortgage Basics for First-Time Buyers in Singapore
- Chapter 2: How Much Can You Borrow? (TDSR, MSR & Stress Tests)
- Chapter 3: HDB Loan vs Bank Loan – 2026 Comparison for First-Time Buyers
- Chapter 4: Using CPF for Your First Home Loan Safely
- Chapter 5: Interest Rates in 2026 – SORA, Fixed, Floating & Hybrid Packages
- Chapter 6: Upfront & Hidden Costs – Stamp Duties, Legal, Renovation
- Chapter 7: Step‑by‑Step Mortgage Timeline for First-Time Buyers
- Chapter 8: Refinancing & Repricing – When Your First Loan Should Change
- Chapter 9: Risk Management – How to Keep Your First Home Loan Safe
- Chapter 10: How Homejourney Supports Your Entire Mortgage Journey
- Frequently Asked Questions (FAQ)
Chapter 1: Mortgage Basics for First-Time Buyers in Singapore
For a first time home buyer Singapore experience can feel overwhelming: acronyms (TDSR, MSR, LTV), HDB vs bank loan, SORA vs fixed rates. Let’s start with foundations in simple language.
What is a mortgage in Singapore?
A mortgage is a long-term loan secured against your property. You borrow from a bank or HDB to pay the seller, and you repay the loan with interest over a tenure (usually up to 25–30 years, depending on your age and loan type).
In Singapore, your mortgage is governed by:
- Monetary Authority of Singapore (MAS) – sets rules like TDSR and LTV limits.
- HDB – for HDB concessionary loans and public housing rules.
- CPF Board – regulates how you can use CPF OA for housing payments.
Key mortgage terms every new buyer must know
Types of homes first-time buyers usually consider
For most Singaporeans, your first property mortgage will finance one of these:
- HDB BTO flat – new subsidised flat from HDB; requires HDB Flat Eligibility (HFE) letter and ballot application.
- HDB resale flat – completed flat in a mature or non-mature estate; no waiting for construction.
- Executive Condominium (EC) – hybrid public-private project, with MOP and income ceiling.
- Private condo – for those with higher incomes or investors, including OCR, RCR, and CCR projects.
Before viewing any unit in places like Punggol, Sengkang or Queenstown, you should know roughly what you can afford. Many first-time couples I’ve spoken to start by viewing units near an MRT they like (e.g., Tampines MRT or Jurong East MRT), then realise later that their loan does not stretch far enough. Avoid this by working backwards from your loan eligibility.
Use Homejourney’s eligibility calculator on the bank rates page Bank Rates or Mortgage Rates to get an instant estimate of your maximum loan and safe price range before you even book a viewing.
Chapter 2: How Much Can You Borrow? (TDSR, MSR & Stress Tests)
Every first home loan in Singapore must comply with MAS rules. Understanding this early prevents disappointment later when a bank says, “You can’t borrow that much.”
Total Debt Servicing Ratio (TDSR)
TDSR limits how much of your gross monthly income can go towards all your debt obligations, including housing loans, car loans, student loans, and credit card instalments.
Key points (based on MAS framework):
- TDSR applies mainly to private properties and ECs.
- MAS applies a stress interest rate (higher than current market rates) to test affordability.
- If you have existing loans, your property loan eligibility drops.
Mortgage Servicing Ratio (MSR)
MSR applies to HDB flats and ECs. It caps the monthly mortgage instalment at a fixed percentage of your gross monthly income.
For HDB flats, you must satisfy both:
- MSR – Housing instalment as a % of income.
- TDSR – Total debts as a % of income.
Worked example: Can this couple afford a S$650,000 HDB resale flat?
Imagine a young couple buying a 4-room HDB resale flat in Bishan for S$650,000. They both work near Raffles Place, and want to live near Bishan MRT for convenience.
- Combined gross income: S$9,000/month
- No other loans (no car, no study loan)
- Downpayment: 20% (mostly CPF OA)
- Loan amount needed: S$520,000
- Loan tenure: 25 years
Assume a stress-tested interest rate of 4% p.a. The estimated monthly instalment would be around S$2,750–2,800. With S$9,000 income, this is just within a conservative MSR/TDSR range, but it is already stretching their cashflow if they plan to have kids or deal with unexpected expenses.
This is why Homejourney’s mortgage calculator on the bank-rates calculator section Bank Rates Mortgage Rates is designed to show both your maximum eligibility and a recommended safe zone, so you don’t over-extend.
Quick TDSR / MSR safety checklist
For more detailed strategies on improving approval chances, see: How to Improve Your Loan Approval Chances | Homejourney Guide How to Improve Your Loan Approval Chances | Homejourney Guide and the Mandarin guide 首次购房者如何提高贷款审批率｜Homejourney安全实战指南 首次购房者如何提高贷款审批率｜Homejourney安全实战指南 .
Chapter 3: HDB Loan vs Bank Loan – 2026 Comparison for First-Time Buyers
One of the biggest decisions for a first time home buyer Singapore is whether to take an HDB concessionary loan or a bank loan. This choice can easily change your lifetime interest cost by tens of thousands of dollars.
Eligibility overview
- HDB loan – for eligible HDB buyers (citizenship, income ceilings, property ownership rules) buying new BTO or resale flats. You need a valid HFE letter from HDB before committing.
- Bank loan – available from banks such as DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, and Citibank for both HDB and private properties.
Key differences: HDB loan vs bank loan (2026 snapshot)
For a fuller discussion see HDB Loan vs Bank Loan: First-Time Buyer Guide | Homejourney HDB Loan vs Bank Loan: First-Time Buyer Guide | Homejourney .
Homejourney strongly encourages first-time buyers to run both scenarios using our bank rates comparison tool Bank Rates so you can see, in dollars, how much more or less you pay with each option over the full tenure. Many couples in areas like Sengkang and Tampines choose HDB first for stability, then refinance to bank loans later when rates are favourable.
Chapter 4: Using CPF for Your First Home Loan Safely
CPF is a powerful tool for a first property mortgage, but it is also your retirement savings. Misusing it can create a cash crunch when you sell or retire.
How CPF OA can be used
- Downpayment (HDB or bank loan, subject to rules).
- Buyer’s Stamp Duty and legal fees (within limits).
- Monthly instalments for your first home loan.
CPF Board provides clear guidance on housing usage, including withdrawal limits and the need to refund principal plus accrued interest when you sell. Check the CPF housing section for updated rules and calculators.
Insider tips on CPF usage from local experience
- Don’t fully drain CPF OA – in practice, many buyers in estates like Jurong West or Punggol leave a small buffer in OA for emergencies or future upgrades.
- Plan for refund on sale – if you use large CPF amounts, your cash proceeds at sale can be smaller than expected because of CPF refund obligations.
- Balance cash and CPF – where possible, keep some cash for renovation and moving costs instead of maxing CPF on downpayment.
For a budget-first approach (linking property price to what you can really afford), read 我能负担多少房？新加坡首次购房者计算器权威指南 | Homejourney 我能负担多少房？新加坡首次购房者计算器权威指南 | Homejourney .
Chapter 5: Interest Rates in 2026 – SORA, Fixed, Floating & Hybrid Packages
Interest rates are where many first-time buyers get confused. Your choice between fixed, floating (usually SORA-based), or hybrid packages will directly affect your monthly instalment and long-term cost.
What is SORA?
SORA (Singapore Overnight Rate Average) is the volume-weighted average rate of overnight interbank SGD transactions. In simple terms, it reflects what banks charge each other to borrow money overnight, and is now the main benchmark for floating home loans in Singapore.
Most SORA home loans are structured as:
- 3M or 6M SORA + spread (e.g., 3M SORA + 0.80% p.a.).
- Rate resets every 3 or 6 months based on the published SORA average.
Homejourney provides real-time SORA tracking on our bank rates page Bank Rates , so you can observe trends instead of guessing where rates might go.
The chart below shows recent interest rate trends in Singapore:
Fixed vs Floating vs Hybrid – Which suits a first-time buyer?
- Fixed rate package
Interest is locked in for a set period (typically 2–3 years). Suitable if you value certainty and want to budget tightly, especially for young families. - Floating (SORA-based)
Rate moves with the market. You may start with a lower rate than fixed packages, but instalments can rise if SORA climbs. - Hybrid packages
Combination of fixed and floating, or different tranches. Less common for first-time HDB buyers, more for investors or higher-value private properties.
To see up-to-date offers from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank, visit Homejourney’s bank rates page Bank Rates . You can compare current fixed and SORA packages side by side, then apply to multiple banks in one submission.
Chapter 6: Upfront & Hidden Costs – Stamp Duties, Legal, Renovation
New buyers often focus only on the 20% downpayment and upgrade renovation expectations based on showflats. In reality, you need to budget carefully for stamp duties, legal costs, valuation, renovation, and even ongoing maintenance like aircon servicing.
1. Buyer’s Stamp Duty (BSD)
BSD is payable on every property purchase in Singapore. It is based on the higher of purchase price or market value.
Use the IRAS BSD calculator or Homejourney’s integrated calculators to get an accurate amount for your specific purchase price. Stamp duty must be paid within the stipulated timeframe after you exercise the Option to Purchase.
2. Additional Buyer’s Stamp Duty (ABSD)
For most first-time Singapore citizen buyers purchasing their first residential property, ABSD is not payable under current rules. However, if you already own a residential property (e.g., co-own with parents) or are not a citizen, ABSD may apply.
Always verify ABSD rules on the IRAS website or with your conveyancing lawyer. Homejourney will also flag potential ABSD exposure during your home search via Property Search and Property Search .
3. Legal, valuation and miscellaneous costs
- Conveyancing legal fees – typically a few thousand dollars depending on law firm and property type.
- Valuation fees – required by banks to confirm property value before issuing a Letter of Offer.
- Fire insurance and mortgage insurance – often mandatory for HDB and strongly recommended for all owners.
4. Renovation and furnishing
A common local pattern: couples buy a 4-room HDB in Punggol or Sengkang, finance almost everything via CPF, then realise renovation costs of S$50,000–S$80,000 for carpentry, flooring, and appliances. If they don’t have enough cash, they turn to renovation loans, which increase their TDSR and add pressure to monthly cashflow.
Plan your renovation budget from the start. After your purchase, you can use Homejourney’s network of partners for services like regular aircon servicing Aircon Services to keep your new home comfortable and your aircon running efficiently (important in our humid climate, especially in sun-facing units in areas like Pasir Ris or Jurong).
Chapter 7: Step‑by‑Step Mortgage Timeline for First-Time Buyers
This chapter walks through a typical timeline for a first time home buyer in Singapore, from dreaming on weekends at Tiong Bahru cafes to actually collecting keys and arranging aircon servicing.
Step 1: Set your budget and eligibility (1–2 weeks)
- Use Homejourney’s mortgage eligibility calculator to estimate your maximum and safe budget.
- Check your CPF OA balances and expected future contributions.
- Clear small debts where possible.
Step 2: Obtain IPA or HFE letter (1–3 weeks)
- For HDB flats: apply for the HDB Flat Eligibility (HFE) letter through HDB’s portal.
- For bank loans: get an In-Principle Approval (IPA) through Homejourney’s multi-bank application Bank Rates .
- Use Singpass/MyInfo via Homejourney to auto-fill income, employment and CPF data securely for faster reviews.
Step 3: Shortlist properties and view (2–8 weeks)
At this stage, use Homejourney’s property search Property Search Property Search to filter units within your pre-approved budget. For HDB, check lease remaining, proximity to MRT (e.g., walking time from the block to Bedok MRT Exit A), and nearby amenities such as wet markets and hawker centres.
Step 4: Offer & Option to Purchase (OTP) (1–2 weeks)
- Once you find a suitable unit, negotiate the price and terms.
- Pay the option fee (commonly 1% of price for private property; for HDB, follow HDB’s prescribed process).
- Ensure you have time in the OTP period to confirm your loan and legal checks.
Step 5: Finalise loan & valuation (1–2 weeks)
- Inform your chosen bank (or banks, if applying through Homejourney’s multi-bank application) once OTP is granted.
- Bank orders a valuation; if value is lower than price, your cash/CPF top-up must cover the difference.
- Review the Letter of Offer carefully: look for lock-in period, penalty clauses, and repricing / conversion options.
Step 6: Legal completion and key collection (8–12 weeks from OTP)
- Your lawyer and bank coordinate completion with seller and HDB/URA.
- You pay remaining downpayment, BSD, and legal fees.
- On completion day, you collect keys – usually mid-afternoon, after registration at HDB Hub (for HDB) or at the lawyer’s office (for private).
BTO buyers should refer to BTO Buyer Complete Financing Guide | Homejourney 2026 BTO Buyer Complete Financing Guide | Homejourney 2026 for a BTO-specific step-by-step breakdown including staggered payments and construction timelines.
Chapter 8: Refinancing & Repricing – When Your First Loan Should Change
Many first-time buyers focus only on getting their first home loan approved. A smarter approach is to treat your mortgage as something you will actively manage over 20–25 years, not just sign once and forget.
Repricing vs Refinancing
- Repricing – Staying with the same bank but switching to a new package (often with a small admin fee).
- Refinancing – Shifting your loan from one bank to another for better terms.
Homejourney’s refinancing workflow on the bank rates page Bank Rates makes this easier: once your lock-in period is nearing its end, you can compare offers from multiple banks and submit a refinancing application with one set of documents using Singpass/MyInfo.
When should a first-time buyer consider refinancing?
- When your existing rate has rolled onto a higher board rate or FHR/SORA spread.
- When market SORA and fixed packages have moved significantly below your current effective rate.
- If your financial profile has improved (higher income, lower debts) and you now qualify for better packages.
Chapter 9: Risk Management – How to Keep Your First Home Loan Safe
Homejourney prioritises user safety. That means not just getting you the biggest loan, but helping you avoid over-stretching, late payments, or forced sales. This chapter covers practical risk controls.
1. Build a realistic budget (not just bank-approved)
From talking to buyers in estates like Yishun, Clementi and Ang Mo Kio, the biggest regret is not the location, but cashflow stress. Many could technically pass the bank’s stress tests, but didn’t leave enough room for:
- Childcare or baby expenses (often S$800–S$1,200 per child per month).
- Transport costs if commuting from outer estates.
- Rising town council charges and utilities.
2. Maintain a mortgage emergency buffer
- Aim for at least 6–12 months of instalments set aside in cash/CPF OA.
- Keep this buffer separate from renovation funds so it’s not accidentally spent.
3. Avoid risky loan structures
- Be cautious of very short teaser rates that jump sharply after year 2.
- Don’t rely on future income increases (promotions, bonuses) to justify a tight instalment now.
- Consider mortgage insurance so your family is protected if something happens to the main breadwinner.
Read 7 Common Mortgage Mistakes First-Time Buyers Make in Singapore | Homejourney 7 Common Mortgage Mistakes First-Time Buyers Make in Singapore | Homejourney and 首次购房者常犯的房贷错误与预算策略｜Homejourney安全指南 首次购房者常犯的房贷错误与预算策略｜Homejourney安全指南 for more in-depth examples.
Chapter 10: How Homejourney Supports Your Entire Mortgage Journey
Unlike generic information sites, Homejourney is built specifically to make the first time home buyer Singapore journey safer and more transparent from search to servicing.
1. Real-time bank rates & SORA tracking
On our bank rates page Bank Rates , you can:
- View current home loan packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, Citibank and more.
- See both fixed and SORA-based floating packages side by side.
- Track live 3M/6M SORA trends to time refinancing or new purchases better.
2. Mortgage calculator & eligibility tools
On the same page , you can:
- Estimate your borrowing power and monthly instalments.
- Stress-test your loan at higher interest rates.
- Align your target property price before you start browsing listings via Property Search or Property Search .
3. One-click multi-bank application with Singpass/MyInfo
Instead of filling multiple forms, you can:
- Submit one secure loan application via Homejourney’s bank-rates page Bank Rates .
- Use Singpass/MyInfo to auto-fill income, CPF and employment data.
- Receive offers from multiple banks and review them side by side with guidance from Homejourney Mortgage Brokers.
