To determine your mortgage eligibility in Singapore and improve your approval chances, you need to understand how banks apply rules like the Total Debt Servicing Ratio (TDSR), Mortgage Servicing Ratio (MSR), Loan‑to‑Value (LTV) limits, and credit assessment, then adjust your income, debts, property budget, and documents accordingly.
This guide focuses on how to practically qualify for a mortgage and optimise your approval odds, and forms part of Homejourney’s broader pillar guide on mortgage eligibility and home loans in Singapore How to Determine Your Mortgage Eligibility in Singapore with Homejourney .
What does mortgage eligibility in Singapore really mean?
In Singapore, mortgage eligibility is your ability to obtain a home loan from a bank or HDB based on regulatory rules set by MAS and HDB, and each bank’s internal criteria.
Banks like DBS, OCBC, UOB, HSBC and Standard Chartered must follow MAS rules on TDSR, LTV and loan tenure when they assess your application.[1][7] At the same time, they look closely at your income, employment type, credit history, age, existing debts and property type before deciding if you qualify for a mortgage.[1][2]
At a high level, you are more likely to be eligible for a mortgage if:
- Your total monthly debt repayments (including the new home loan) do not exceed 55% of gross monthly income (TDSR limit).[1][7]
- If buying HDB/EC, your monthly mortgage instalment does not exceed 30% of gross monthly income (MSR limit).[1]
- You meet age and tenure limits (usually loan must be fully repaid by age 65–75 depending on lender).[2]
- You have a stable, verifiable income and acceptable credit record.[1][2]
- Your downpayment is sufficient based on LTV limits and how many housing loans you already have.[1][7]
Homejourney simplifies this by letting you run the numbers instantly with our built-in loan eligibility calculator and live bank rates comparison on the bank rates page Bank Rates .
Key mortgage eligibility rules in Singapore (TDSR, MSR, LTV, age)
1. Total Debt Servicing Ratio (TDSR)
TDSR is the most important rule for mortgage eligibility Singapore-wide. MAS caps TDSR at 55% of your gross monthly income for any housing loan, whether HDB or private.[1][7]
TDSR includes:
- New housing loan instalment (based on a stress-test interest rate prescribed by MAS).
- Car loans, personal loans, renovation loans, education loans.
- Credit card minimum payments (usually 3% of outstanding, or a fixed minimum, whichever is lower).[1]
- Any other term loans or hire purchase instalments.
Insider tip: When I speak with buyers viewing resale flats near Bishan MRT or condos in Punggol, the most common surprise is how a car loan or $20,000 of rolling credit card debt can slash their borrowing power. Clearing these before applying often boosts eligibility much more than trying to negotiate on price.
2. Mortgage Servicing Ratio (MSR) – for HDB and EC only
MSR applies only if you are buying an HDB flat or an Executive Condominium (EC). Your monthly mortgage instalment cannot exceed 30% of gross monthly income.[1][9]
MSR applies on top of TDSR, so HDB and EC buyers are effectively subject to both 30% (MSR) and 55% (TDSR) constraints.[1]
For example, a couple buying a 4-room BTO in Tampines GreenVerge or a resale flat in Bukit Batok must pass both MSR and TDSR, while a couple buying a condo near Outram Park MRT is subject only to TDSR.
3. Loan-to-Value (LTV) and downpayment
LTV determines the maximum percentage of a property’s purchase price (or valuation, whichever is lower) that can be financed by a housing loan.[1][7] For buyers under 55 with no existing housing loans and good credit, bank loans can go up to around 75%, meaning a 25% downpayment (5% cash minimum, 20% cash or CPF).[1]
If you already have one or more housing loans, maximum LTV drops and your required cash downpayment increases.[7]
Local example: On a $1,000,000 condo in Queenstown, a first‑time buyer may be able to borrow up to $750,000 and must prepare $50,000 in cash and $200,000 in cash/CPF. A second‑property buyer with an existing loan will typically see a much lower LTV and higher Additional Buyer’s Stamp Duty, sharply reducing affordability.[7]
4. Age and loan tenure limits
Banks generally require borrowers to be at least 21 years old, and to complete repayment by their mid‑60s to early‑70s depending on internal policy.[2][6] MAS also caps maximum loan tenures for residential property (often up to 30 years for private and 25–30 for HDB, subject to conditions).[7]
If you or your co‑borrower are older, your maximum tenure may be shorter, which increases monthly instalments and can fail MSR/TDSR unless your income is higher.[2]
5. Income type and employment stability
Banks distinguish between:
- Fixed salaried income – based on recent payslips, CPF contribution history and Notice of Assessment.
- Variable or commission income – banks usually take an average and may apply a haircut.
- Self‑employed or freelance income – typically subject to a 30% income haircut when computing TDSR, and assessed using 1–2 years of tax returns.[2]
Example: A self‑employed Grab driver or freelance designer declaring $5,000/month will often be assessed as $3,500/month for TDSR purposes after the 30% haircut.[2] This can significantly reduce their maximum loan size.
6. Credit score and repayment history
Banks use your credit report from Credit Bureau Singapore to review your repayment behaviour, outstanding balances, and any late payments or defaults. A pattern of late payments or multiple unsecured loans can cause banks to reduce your eligible loan amount or even reject your application, even if you meet TDSR/MSR on paper.
From experience, buyers with clean records but modest income often get approved for a moderate loan faster than high‑income applicants with messy credit histories.
Practical calculation examples: How much can you borrow?
These simplified examples show how TDSR and MSR shape your home loan eligibility. Actual bank assessments will differ and use stress‑test rates set by MAS and each bank, so always run detailed numbers on Homejourney’s mortgage calculator Mortgage Rates or .
Example 1: Young couple buying a BTO flat (HDB + bank loan)
Profile: Married couple, both 30, looking at a 4‑room BTO in Tengah priced at $420,000.
- Combined gross income: $8,000/month.
- No car loan, no personal loans, small credit card balance.
- Planning to take a bank loan.
Step 1 – MSR (30%):
Maximum monthly instalment under MSR = 30% × $8,000 = $2,400.[1][9]
Step 2 – TDSR (55%):
Maximum total monthly debt under TDSR = 55% × $8,000 = $4,400.[1][7]
Because they have minimal other debts, the real cap for their housing instalment is the stricter MSR limit of $2,400.
Using a bank rate of around 2.6–3.0% (typical for 2025 floating packages based on 3M SORA plus spread) and 25‑30 year tenure, a $2,400/month instalment usually supports a loan in the rough range of $550,000–$600,000, which is more than enough for a $420,000 BTO price after downpayment. They should comfortably qualify if their credit is clean and documents are in order.[2]
Example 2: Same couple, but now with a car loan
Assume the couple in Tengah takes on a car loan with a $900/month instalment.
- Maximum total monthly debt under TDSR stays at $4,400.
- Car loan $900 + housing instalment H = $4,400 → H can theoretically go up to $3,500 under TDSR.
