To determine your mortgage eligibility in Singapore and improve your approval chances, you must first understand how banks assess you: your income, Total Debt Servicing Ratio (TDSR), Mortgage Servicing Ratio (MSR), age, credit history, and existing loans, then use a loan eligibility calculator to estimate your borrowing limit before applying through a trusted platform like Homejourney for verified, multi-bank comparisons.
In this cluster guide, we zoom into the practical steps of assessing and improving your home loan eligibility, while our main pillar guide on Singapore home loans provides a full end-to-end overview of property financing, from budgeting to refinancing. Mortgage Eligibility in Singapore: Practical Guide with Homejourney Tools
What Does Mortgage Eligibility Mean in Singapore?
In Singapore, home loan eligibility is your assessed capacity to borrow from a bank or HDB based on Monetary Authority of Singapore (MAS) rules, especially TDSR and MSR, plus each bank’s internal criteria.[5] It determines three key things: whether you qualify for a mortgage, how much you can borrow, and the maximum loan tenure.
When I sit down with buyers at cafes near Tanjong Pagar MRT after evening viewings, the same questions always come up: “Am I eligible for a mortgage?” and “How much can I safely borrow?” The safest way to get a realistic answer is to combine MAS rules with an on-the-ground understanding of your income, debts, and future plans.
Homejourney builds a safe, trusted environment by aligning its eligibility tools with MAS regulations and bank criteria, so the numbers you see are grounded in the same logic that DBS, OCBC, UOB and other major banks use when assessing your application.[5]
Who Typically Qualifies for a Home Loan?
While each bank has its own underwriting policy, most borrowers who qualify share a few common traits:
- Stable employment (usually > 6–12 months in current job, or longer track record for self-employed)
- Consistent verifiable income (payslips, CPF contributions, or IRAS Notices of Assessment)
- TDSR of ≤ 55% of gross monthly income, inclusive of the new housing loan[5]
- For HDB and new EC buyers, MSR ≤ 30% of gross monthly income[5]
- Age plus loan tenure within MAS limits (e.g. typical cap of 30 years for HDB, 35 years for private housing)[5]
- Reasonable credit history with no serious or unresolved defaults
Foreigners and PRs buying private properties can qualify on similar TDSR rules, but banks may ask for more documentation and sometimes offer lower loan-to-value (LTV) or shorter tenures, especially if income is variable or overseas.[1][2]
Key Eligibility Rules: TDSR, MSR, Age & Credit
1. TDSR – 55% Overall Debt Limit
TDSR (Total Debt Servicing Ratio) limits your total monthly debt obligations to 55% of your gross monthly income for all property loans and other debt (e.g. car loans, personal loans, credit card instalments, student loans).[5]
Formula (simplified):
TDSR = (All monthly debt instalments ÷ Gross monthly income) × 100%
For example, if a couple earns S$12,000/month combined, their maximum allowable monthly debt repayment under TDSR is:
55% × S$12,000 = S$6,600
This S$6,600 must cover the new home loan plus existing debts. Homejourney’s TDSR calculator on the bank rates page lets you test different scenarios and immediately see how your eligibility changes. Bank Rates
2. MSR – 30% Limit for HDB & EC Buyers
MSR (Mortgage Servicing Ratio) applies only to HDB flats and new Executive Condominiums (ECs). It caps your monthly mortgage instalments (for the property you’re buying) at 30% of your gross monthly income.[5]
Formula (simplified):
MSR = (Monthly instalment for that HDB/EC ÷ Gross monthly income) × 100%
For example, if your joint income is S$8,000, your MSR-capped monthly instalment cannot exceed:
30% × S$8,000 = S$2,400
Banks must check both TDSR and MSR for HDB and EC loans, which is why many couples viewing BTOs in Punggol or resale flats in Tampines discover they can technically pass TDSR but fail MSR if they stretch too much on price.
3. Age & Loan Tenure Limits
MAS rules limit the loan tenure depending on the property type and your age.[5] In practice, most banks will:
- Cap loan tenure at around 30 years for HDB flats and 35 years for private residential property
- Ensure loan does not typically extend beyond the borrower’s 65–75 years old range (bank-specific)
So if you are 45 and buying a private condo in Queenstown, the maximum practical tenure might be around 25–30 years. Shorter tenure means higher monthly instalment, which can reduce your home loan eligibility.
4. Credit Score & Employment Stability
Banks review your credit history (e.g. from Credit Bureau Singapore) to see if you pay bills on time, use credit responsibly, and avoid frequent late payments. Irregular payment behaviour or existing credit issues can cause banks to reduce your approved amount or decline the loan.
Employment stability also matters: salaried employees with at least 6–12 months in a steady role are generally viewed more favourably than someone who just changed jobs last month, even if the pay is slightly higher. Self-employed, commission-based, or gig workers often have their income “discounted” by banks when calculating TDSR to account for variability.[2]
Step-by-Step: How to Determine Your Mortgage Eligibility
To answer “Am I eligible for a mortgage?” systematically, follow this simple process that mirrors how banks assess you.
Step 1: Add Up Your Gross Monthly Income
Include:
- Fixed base salary (from payslips and CPF contributions)
- Average monthly bonus/commission (usually averaged over 12 months or more)
- Self-employed income based on IRAS Notices of Assessment (banks may haircut this)
Example: A couple where one works in Raffles Place earning S$6,000/month and the other in Changi Business Park earning S$4,000/month has a combined gross income of S$10,000.
Step 2: List All Existing Monthly Debt Obligations
Include:
- Car loans
- Student loans
- Personal loans
- Credit card instalment plans (e.g. big purchases on instalment)
If you pay S$800 for a car loan and S$200 for an education loan, your existing monthly debt is S$1,000.
Step 3: Estimate Maximum Monthly Instalment via TDSR/MSR
With S$10,000 income, your TDSR cap is:
55% × S$10,000 = S$5,500 (maximum total debt)[5]
After subtracting S$1,000 existing debt, the maximum instalment available for your new mortgage is roughly:
S$5,500 − S$1,000 = S$4,500
If you’re buying an HDB flat, you must also check MSR:
30% × S$10,000 = S$3,000[5]
In that case, your HDB instalment is capped at S$3,000 even though TDSR would allow S$4,500.
Step 4: Convert Monthly Instalment into Loan Amount
Banks also apply an internal “stress test” interest rate (often higher than current market rates) when calculating loan eligibility, to ensure you can cope if rates rise. You can approximate this using Homejourney’s loan eligibility calculator on the bank rates page. Mortgage Rates
As a simple illustration only (not exact bank figures):
