How to Determine Your Mortgage Eligibility in Singapore with Homejourney

Understanding your mortgage eligibility in Singapore is the first safeguard against over-stretching your finances and making a costly mistake in your property journey.

In Singapore’s tightly regulated housing market, rules like TDSR, MSR, LTV limits, income haircuts and age-based tenures directly decide how much you can borrow, how long you can borrow for, and whether a bank will even approve your home loan.

This definitive Homejourney guide explains, in plain language, how banks and regulators assess your home loan eligibility, how to run your own numbers, and how to safely improve your chances of approval — all while keeping your long‑term financial safety front and centre.

1. Mortgage Eligibility in Singapore: The Essentials
2. Key Rules: TDSR, MSR, LTV and Age-Based Tenure
3. Income, Employment and Credit: How Banks Really Assess You
4. Step‑by‑Step: How to Calculate Your Own Loan Eligibility
5. Real‑World Eligibility Scenarios (With Numbers)
6. How to Improve Your Mortgage Eligibility Safely
7. Using Homejourney Tools to Check Eligibility and Compare Banks
8. Special Situations: HDB vs Bank Loans, Expats, Investors & Upgraders
9. Common Mistakes and Misconceptions About Mortgage Eligibility
10. FAQs: “Am I Eligible for a Mortgage in Singapore?”

1. Mortgage Eligibility in Singapore: The Essentials

When Singapore banks decide whether you qualify for a mortgage, they look at four big buckets:

Your income, existing debts and monthly obligations
Regulatory limits (TDSR, MSR, LTV and tenure rules set by MAS and HDB)[1][7]
Your age and remaining working years[2][7]
Your credit history and employment stability[2]

On top of that, the type of property you buy (HDB, EC, or private) and the type of loan (HDB loan vs bank loan) change the rules that apply to you.[1][5]

Who generally qualifies for a mortgage in Singapore?

In practice, you are more likely to be eligible for a home loan if you:

Are at least 21 years old (minimum age for most bank loans)[2][6]
Have regular, documented income (salaried or self‑employed with records)[2]
Keep your Total Debt Servicing Ratio (TDSR) at or below 55%[1]
For HDB/EC with bank loans, keep your Mortgage Servicing Ratio (MSR) at or below 30%[1][9]
Have a clean or at least acceptable credit record with no recent defaults[2]
Can meet the required downpayment under prevailing Loan‑to‑Value (LTV) rules[1][7]

For HDB concessionary loans, there are extra criteria such as household income ceilings and citizenship rules, which we cover in Section 8.[3][5]

Common misconceptions about mortgage eligibility

“If my income is high, I will surely get the loan I want.”
Not always. If you already have a car loan, education loan and large credit card balances, your TDSR can still breach the 55% cap and reduce your loan eligibility.[1]
“Banks only look at my latest payslip.”
For most borrowers, banks use 3–6 months of payslips or CPF contribution history; for self‑employed, they typically use 1–2 years of income and apply a haircut.[2]
“If I can pay the downpayment, I’m safe.”
Downpayment is only one part. Monthly instalments must also pass TDSR/MSR tests using a stress interest rate, not today’s promotional rate.[1][7]
“HDB and bank loan eligibility are the same.”
HDB uses its own income ceilings, citizenship and flat eligibility rules, while banks follow MAS TDSR/MSR and their own internal criteria.[3][5]

2. Key Rules: TDSR, MSR, LTV and Age-Based Tenure

Singapore’s mortgage rules are designed to prevent over‑borrowing and protect households. As a borrower, these rules are your first safety net, but they also limit how much you can borrow even if you feel you can “afford more”.

2.1 Total Debt Servicing Ratio (TDSR): 55% Cap

TDSR (Total Debt Servicing Ratio) is the percentage of your gross monthly income used to pay all your monthly debt obligations, including the new property loan.[1][9]

Formula:
TDSR = (All monthly debt repayments ÷ Gross monthly income) × 100%

Under MAS rules, your TDSR cannot exceed 55% for any residential property loan, whether it is for HDB, EC or private property.[1][7]

Debts counted in TDSR include:[1]

Existing home loans
Car loans
Personal loans and renovation loans
Education loans
Credit card debt (minimum payment, usually 3% or S$50, whichever is lower)[1]

Insider tip (local experience): In mature estates like Tampines and Bishan, many upgraders underestimate the impact of car loans. A S$1,200 monthly car instalment can easily shave off S$200,000–S$300,000 from your loan eligibility depending on tenure and rates. Clearing or restructuring that car loan before applying can make a big difference.

2.2 Mortgage Servicing Ratio (MSR): 30% Cap for HDB & EC

MSR (Mortgage Servicing Ratio) is the percentage of your gross monthly income used only for the mortgage on your HDB flat or Executive Condominium (EC).[1][9]

Formula:
MSR = (Monthly mortgage repayment for HDB/EC ÷ Gross monthly income) × 100%

For loans to purchase HDB flats or ECs, your MSR must not exceed 30% of your gross monthly income.[1][9] This limit applies when you use a bank loan for:

HDB flats purchased after 12 January 2013[1]
EC units purchased after 10 December 2013[1]

For these properties, you must pass both TDSR (55%) and MSR (30%) to get a bank loan.[1]

2.3 Loan‑to‑Value (LTV) Limits and Downpayment

Loan‑to‑Value (LTV) is the maximum percentage of the property price or valuation (whichever is lower) that you can borrow.[7]

In practice, if you have no existing housing loans, are under 55 and have a good credit profile, many borrowers can obtain up to 75% LTV from banks.[1]

For illustration (generic, bank‑dependent):[1][7]

Profile (Illustrative)	Possible Max LTV	Cash Downpayment (Min)	Cash/CPF Downpayment (Balance)
No outstanding home loans, age < 55, strong credit	Up to 75%	5% (cash)	20% (cash or CPF)
One existing housing loan	Lower than 75% (often 45%–55% range, depending on rules)	At least 25% cash/CPF, with higher cash portion	Balance via CPF/cash
Two or more existing housing loans	Even lower LTV; must input more equity	Significant cash/CPF required	Balance CPF/cash

Safety note: Hitting the maximum LTV is not always wise. Many prudent buyers in new townships like Tengah or Bidadari intentionally target 60–70% financing to keep future cash flow flexible for children’s education or job changes.

2.4 Age, Tenure and MAS Limits

Loan tenure is capped by MAS at:[7]

30 years for HDB flats
35 years for non‑HDB properties (e.g. private condos, landed homes)[7]

Banks generally require the loan to be fully repaid by a certain age (commonly around 65, although this may vary by bank).[2][6]

For joint borrowers, MAS requires banks to use an income‑weighted average age to determine effective age and maximum tenure.[7]

Local example: A 32‑year‑old teacher staying in Punggol and her 48‑year‑old engineer spouse buying a 4‑room BTO in Punggol Northshore may find that their maximum effective tenure is slightly shorter than 30 years because the older spouse’s income weighs more.

3. Income, Employment and Credit: How Banks Really Assess You

Once TDSR, MSR, LTV and tenure frameworks are set, banks dive into your income sources, employment stability and credit behaviour to decide whether you are an acceptable risk.

3.1 Income Types and Haircuts

Banks broadly classify income into:

Fixed income – e.g. your basic monthly salary
Variable income – commissions, bonuses, overtime
Self‑employed / business income – from sole proprietors, partners, freelancers

Under MAS guidelines and bank practice, variable and self‑employed income is usually subject to a haircut (often around 30%).[2] That means only 70% of that income is counted for TDSR calculations.

Example (self‑employed):
If you are a self‑employed graphic designer in Joo Chiat earning S$5,000 a month on average, banks may only recognise around S$3,500 for TDSR purposes (after a 30% haircut).[2]

For self‑employed, banks also commonly look at:

Latest 1–2 years’ Notice of Assessment (NOA)
Business registration documents (ACRA)
Bank statements showing consistent inflows

3.2 Employment Stability

Beyond numbers, stability matters. Being with the same employer for at least 6–12 months, or staying in the same industry for several years, usually helps. Frequent job hopping or unexplained income dips can trigger more questions or lower approval limits.[2]

Insider observation: In CBD sectors like Raffles Place and Tanjong Pagar, bankers are used to seeing variable bonuses. But if your latest bonus is significantly higher than the past two years, many banks will average the last 2–3 years rather than taking the highest number.

3.3 Credit Score and Behaviour

Your credit report from the Credit Bureau Singapore (CBS) shows your repayment history, credit limits and whether you have late or missed payments.

Red flags include:

Recent late payments for credit cards or instalment plans
Maxed‑out card limits and many short‑term personal loans
Defaults or debt restructuring arrangements

These can reduce your approved loan quantum or, in serious cases, lead to rejection even if you technically pass TDSR/MSR.

4. Step‑by‑Step: How to Calculate Your Own Loan Eligibility

This section gives you a clear, repeatable process to answer “Am I eligible for a mortgage?” before you even speak to a banker. For a faster route, you can also use Homejourney’s built‑in loan eligibility calculator at Bank Rates or Mortgage Rates .

4.1 Step 1 – Determine Your Gross Monthly Income

Include:

Fixed base salary
Average variable income (after applying typical 30% haircut if self‑employed or highly variable)[2]
Rental income (if any), also often subject to haircuts and documentation

Use conservative estimates. If your salary fluctuates (e.g. sales in Orchard Road retail), take a 12‑month average.