How to Get Pre-Approved for a Mortgage in Singapore: The Definitive 2026 Guide

Getting pre-approved for a mortgage is the essential first step that separates serious buyers from casual shoppers in Singapore's property market. An In-Principle Approval (IPA), also known as mortgage pre-approval or loan pre-approval, is a preliminary assessment from a bank confirming how much you can borrow based on your financial profile. This guide walks you through every step of the pre-approval process, explains what banks evaluate, and shows you how to maximize your approval chances.

At Homejourney, we believe transparency and user safety are paramount. That's why we've created this comprehensive resource to help you navigate mortgage pre-approval with confidence, understand your borrowing capacity, and make informed decisions about your property investment. Whether you're a first-time buyer, upgrading from an HDB flat, or an investor exploring refinancing options, this guide equips you with the knowledge to move forward strategically.

Table of Contents

1. What Is Mortgage Pre-Approval?
2. IPA vs AIP vs Final Approval: Understanding the Stages
3. Eligibility Requirements for Pre-Approval
4. Complete Documentation Checklist
5. Step-by-Step Pre-Approval Process
6. How Banks Assess Your Application
7. TDSR Explained: Your Borrowing Limit
8. The Homejourney Advantage
9. Pro Tips to Strengthen Your Application
10. Common Mistakes to Avoid
11. Frequently Asked Questions

What Is Mortgage Pre-Approval?

Mortgage pre-approval is a preliminary assessment where a bank reviews your financial documents and confirms, in principle, that you qualify for a home loan up to a specific amount. It's not a formal loan commitment, but rather a conditional green light that demonstrates to sellers and agents that you're a serious, financially qualified buyer.

In Singapore's property market, pre-approval is non-negotiable. Sellers won't grant you an Option to Purchase (OTP) without proof that you can finance the purchase. Agents take you more seriously when you arrive with pre-approval in hand. Most importantly, pre-approval gives you a clear budget ceiling, preventing you from falling in love with properties you can't actually afford.

The pre-approval process typically takes 3 to 5 business days for salaried employees with straightforward income documentation. The approval is valid for 30 days, giving you a window to search for properties, negotiate, and secure an Option to Purchase before your approval expires.

Pre-approval differs fundamentally from final approval. Pre-approval is based on your financial documents and creditworthiness. Final approval comes after you've found a specific property, the bank has valued it, conducted final credit checks, and issued a formal Letter of Offer. Understanding this distinction helps you manage expectations throughout the buying journey.

IPA vs AIP vs Final Approval: Understanding the Stages

Singapore's mortgage approval process involves three distinct stages, each with different purposes and validity periods. Understanding these stages prevents confusion and helps you navigate the process strategically.

In-Principle Approval (IPA)

An In-Principle Approval is the first stage of pre-approval. It's a preliminary assessment based on your personal financial documents—payslips, tax returns, bank statements, and employment details. The bank conducts a credit check and evaluates your debt servicing ratio to determine your maximum borrowing capacity.

Key characteristics of IPA:

• Valid for 30 days from issuance
• Based on your financial profile, not a specific property
• Issued within 3-5 business days
• Non-binding; you can withdraw without penalty
• Accepted by sellers and agents as proof of financing capability

Approval In Principle (AIP)

Some banks use the term "Approval In Principle" (AIP) interchangeably with IPA. Both refer to the same preliminary approval stage. The terminology varies by bank, but the concept is identical: a conditional approval based on your financial documents, valid for 30 days.

Final Approval (Letter of Offer)

Final approval occurs after you've exercised your Option to Purchase and the bank has completed property valuation and final credit checks. The bank issues a formal Letter of Offer (LO) specifying the exact loan amount, interest rate, tenure, and all terms and conditions.

Key characteristics of final approval:

• Specific to the property you're purchasing
• Conditional on satisfactory property valuation
• Issued after exercising OTP and property valuation
• Valid for 90 days typically
• Legally binding once you sign and return it
• Loan funds disburse on completion day

Eligibility Requirements for Pre-Approval

Before applying for pre-approval, ensure you meet Singapore's basic eligibility criteria. These requirements vary slightly depending on your residency status, employment type, and property category.

For Singapore Citizens and PRs

• Must be at least 21 years old
• Must be employed or self-employed with stable income
• Must have a valid NRIC or PR card
• Must meet the Debt-to-Service Ratio (TDSR) requirement (typically maximum 60% of gross monthly income)
• Must not have outstanding HDB loans if buying a private property (unless upgrading)
• Must not have disposed of a property in the past 30 months (unless buying a replacement)

For Foreigners and Expatriates

• Must be at least 21 years old
• Must have a valid work visa or employment pass
• Must have been employed in Singapore for at least 6 months (some banks require 12 months)
• Must have a valid passport and current visa
• May face stricter TDSR requirements (some banks cap at 55%)
• Must provide overseas credit reports and tax documentation
• Can only purchase private properties (not HDB flats)
• Some banks require a Singapore-based guarantor

For Self-Employed Individuals

• Must have been self-employed for at least 2 years
• Must provide 2 years of audited financial statements
• Must provide 2 years of tax returns (IRAS Notice of Assessment)
• Income is typically averaged over the past 2 years
• May face longer processing times and stricter scrutiny

If you don't meet these criteria, you may still have options. Some banks offer alternative assessment methods for non-traditional income sources, recent arrivals, or those with credit challenges. This is where consulting with a mortgage broker becomes invaluable.

Complete Documentation Checklist

The strength of your pre-approval application depends heavily on the completeness and quality of your documentation. Banks use these documents to verify your income, assess your creditworthiness, and calculate your borrowing capacity. Preparing comprehensive documentation upfront accelerates the approval process and reduces the likelihood of requests for additional information.

Identity and Residency Documents

• Valid NRIC (for citizens) or PR card (for permanent residents)
• Valid passport
• Current work visa or employment pass (for foreigners)
• Proof of Singapore address (utility bill, tenancy agreement, or lease document)

Employment and Income Documents

• Latest employment contract or letter of appointment
• Last 3 to 6 months of payslips
• Last 2 years of IRAS Notice of Assessment (NOA) or tax returns
• Confirmation letter from employer (optional but strengthens application)
• For self-employed: 2 years of audited financial statements and business registration documents

Financial Documents

• Last 3 to 6 months of bank statements (all accounts)
• CPF statement showing current balance (if using CPF for down payment)
• Proof of savings or investment accounts
• Credit card statements (if carrying balances)
• Details of existing loans or liabilities

For Foreigners and Expatriates

• Overseas credit report (if you have credit history outside Singapore)
• Bank statements from home country evidencing savings source
• Home country tax returns or equivalent documentation
• Proof of employment history and duration
• Visa sponsorship letter from employer (if applicable)

Optional Documents That Strengthen Your Application

• Letter from employer confirming job stability and future prospects
• Proof of bonus or variable income (if applicable)
• Evidence of rental income (if you own other properties)
• Professional certifications or qualifications
• Letters of reference from previous employers

Step-by-Step Pre-Approval Process

The pre-approval journey follows a clear sequence. Understanding each step helps you prepare properly and manage expectations about timelines.

Step 1: Calculate Your Borrowing Capacity (Before Applying)

Before submitting an application, use a mortgage eligibility calculator to estimate how much you can borrow. This preliminary assessment helps you understand your budget and identify any potential issues before formal application.

At Homejourney, our mortgage calculator provides instant eligibility estimates based on your income, existing liabilities, and desired loan tenure. You can experiment with different scenarios—increasing down payment, shortening tenure, or reducing loan amount—to see how each affects your monthly repayment.

Key inputs for the calculator:

• Gross monthly income
• Existing monthly liabilities (car loans, credit cards, personal loans)
• Desired down payment amount
• Preferred loan tenure (typically 25-30 years)
• Estimated property price

Step 2: Gather and Organize Your Documentation

Collect all required documents systematically. Create a folder (digital or physical) with clearly labeled documents. Ensure all documents are current (typically dated within the last 3-6 months) and legible. For documents from overseas, obtain official translations if necessary and have them apostilled.

Pro tip: Many banks now accept digital submissions via their mobile apps or online portals. Scan documents at high resolution (300 DPI) to ensure clarity. Keep copies for your records.

Step 3: Choose Your Bank(s) and Submit Application

You have two strategies here: apply to one bank or apply to multiple banks simultaneously.

Single Bank Approach: Submit to your primary bank (where you hold accounts) or a bank with the most competitive rates. This approach is simpler but limits your options.

Multiple Bank Approach: Submit identical applications to 3-4 banks simultaneously. This approach takes minimal additional effort but gives you multiple approval offers to compare. Most importantly, it doesn't damage your credit score—multiple pre-approval inquiries within a short period (typically 30 days) count as a single inquiry for credit scoring purposes.

Homejourney simplifies multi-bank applications significantly. Instead of visiting each bank's website separately, submit one application through Homejourney's platform and it reaches DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, and other major lenders. You'll receive offers from multiple banks, allowing you to compare rates and terms side-by-side.

Step 4: Wait for Initial Assessment (3-5 Business Days)

After submission, the bank's credit assessment team reviews your application. They verify employment, check your credit report, and calculate your TDSR. Most applications for salaried employees with straightforward income receive preliminary approval within 3-5 business days.

Some banks offer instant or same-day conditional approvals based on automated assessment, though these are subject to documentation verification. UOB, for example, offers instant home loan approval for Singaporeans and PRs through their streamlined online process.

Step 5: Receive Your IPA Letter

Once approved, the bank issues your In-Principle Approval letter. This document specifies:

• Maximum loan amount you can borrow
• Estimated monthly repayment amount
• Validity period (typically 30 days)
• Conditions that must be met (e.g., satisfactory property valuation)
• Interest rate indication (if provided)

The IPA letter is your passport to property shopping. Present it to agents and sellers as proof that you're a serious, financially qualified buyer. This significantly strengthens your negotiating position when making offers.

Step 6: Begin Property Search with Confidence

With your IPA in hand, you now know your exact budget. Use Homejourney's property search to filter properties within your approved loan amount. Focus on properties that align with your financial capacity and investment goals. Once you find a property you want to purchase, you're ready to move to the next stage: making an offer and securing an Option to Purchase.

How Banks Assess Your Application

Understanding how banks evaluate pre-approval applications helps you present your strongest financial profile. Banks use a standardized assessment framework, though individual banks may weight factors differently.

Income Verification and Stability

Banks verify your income through multiple channels: employer confirmation, payslip analysis, and tax return review. They assess not just the amount of income, but its stability and growth trajectory.

Salaried employees: Banks typically accept your current salary as stated on recent payslips and employment contract. They may apply a discount factor if you're in a probationary period or have recently changed jobs.

Bonus and variable income: Banks average bonus income over the past 2-3 years and apply a conservative percentage (typically 50-70%) to account for variability.

Self-employed income: Banks average net profit over the past 2 years using audited financial statements. They scrutinize expense claims and may request explanations for large deductions.

Rental income: If you own other properties, banks typically accept 70-80% of gross rental income (accounting for vacancy and maintenance).

Credit History and Credit Score

Banks pull your credit report from the Credit Bureau Singapore (CBS). They review:

• Payment history on existing loans and credit cards
• Any defaults, late payments, or delinquencies
• Total outstanding debt and credit utilization
• Recent credit inquiries (multiple inquiries suggest financial stress)
• Bankruptcy or debt restructuring history

While Singapore doesn't use a formal credit score like the US, banks assess creditworthiness based on these factors. Late payments or defaults significantly reduce approval chances. Even a single missed payment can trigger a manual review and potential rejection.

Existing Liabilities and Debt-to-Service Ratio (TDSR)

Banks calculate your total monthly debt obligations including car loans, personal loans, credit card minimums, and any other liabilities. They then calculate your Debt-to-Service Ratio (TDSR) to determine how much additional mortgage debt you can service.

TDSR is the most critical factor determining your borrowing capacity. We'll explore this in detail in the next section.

Employment Stability and Job Security

Banks prefer applicants in stable, established industries. They view certain sectors as higher risk:

• Lower risk: Government, banking, healthcare, education, utilities
• Moderate risk: Technology, finance, professional services, construction
• Higher risk: Commission-based sales, entertainment, seasonal work, contract-based employment

If you're in a contract-based role, expect more scrutiny. If your contract is ending soon, you may be asked to provide evidence of contract renewal or alternative employment lined up.

Savings and Down Payment Source

Banks want to see that you have sufficient savings for a down payment and that these funds come from legitimate sources. They typically require:

• Proof of down payment funds (bank statements showing the amount)
• Evidence that funds have been in your account for at least 3-6 months (to rule out borrowed money)
• Explanation for large deposits or transfers

If you're using CPF for down payment, provide your latest CPF statement. If you're receiving a gift from family, you may need a statutory declaration from the gift-giver confirming it's a gift, not a loan.

Age and Loan Tenure

Banks typically don't lend beyond age 65-70 (the exact age varies by bank). If you're older, your maximum loan tenure is reduced. For example, if you're 55 years old, a bank might limit your tenure to 10 years (to age 65), which increases your monthly repayment and reduces the loan amount you can borrow.

TDSR Explained: Your Borrowing Limit

The Debt-to-Service Ratio (TDSR) is the single most important factor determining how much you can borrow. Understanding TDSR is crucial for realistic financial planning.

What Is TDSR?

TDSR is the percentage of your gross monthly income that goes toward servicing all debt obligations, including the new mortgage. Singapore's Monetary Authority (MAS) caps TDSR at 60% for most borrowers, though some banks apply stricter limits (55% for foreigners, 65% for HDB upgraders in certain circumstances).

Formula: TDSR = (Total Monthly Debt Obligations + Estimated New Mortgage Payment) / Gross Monthly Income

What Counts Toward TDSR?

Banks include all monthly debt obligations:

• Car loans (full monthly payment)
• Personal loans (full monthly payment)
• Credit card debt (minimum payment or full outstanding balance, depending on bank policy)
• Hire purchase agreements
• Student loans
• Existing mortgage payments (if you own other properties)
• Estimated new mortgage payment (calculated based on loan amount, tenure, and interest rate)

TDSR Example

Let's walk through a realistic example:

Profile: Sarah earns $6,000 gross monthly income. She has a car loan with $400 monthly payment and credit card debt requiring $200 monthly minimum payment. She wants to buy a $500,000 property with a $100,000 down payment, requiring a $400,000 mortgage over 25 years.

Calculation:

• Gross monthly income: $6,000
• Car loan: $400
• Credit card minimum: $200
• Estimated mortgage payment on $400,000 at 3.5% over 25 years: approximately $1,900
• Total monthly obligations: $400 + $200 + $1,900 = $2,500
• TDSR: $2,500 / $6,000 = 41.7%

Sarah's TDSR is 41.7%, well below the 60% cap, so she qualifies for this mortgage.

Strategies to Improve Your TDSR

If your TDSR is too high, consider these strategies:

• Increase down payment: