How to Improve Your Loan Approval Chances | Homejourney
To improve your loan approval chances in Singapore, focus on boosting your credit score, lowering your TDSR below 60%, preparing complete documents early, and using Homejourney's multi-bank application for quick In-Principle Approvals (IPAs) from DBS, OCBC, UOB and more.
Homejourney prioritizes your safety by verifying lender offers and auto-filling applications via Singpass, making the process transparent and stress-free. This cluster article dives into actionable steps for first-time buyers, young couples, and BTO applicants, linking back to our pillar guide on HDB Loan vs Bank Loan.
Why Loan Approval Matters for Singapore Buyers
Securing a home loan is key for couples buying their first home or newlyweds eyeing a BTO flat. Banks like DBS, OCBC, and UOB assess creditworthiness, income stability, and regulatory limits like TDSR (Total Debt Servicing Ratio) at 60% and MSR (Mortgage Servicing Ratio) at 30% of gross income.
Property valuation also factors in; lenders loan against the lower of purchase price or appraised value. Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator lets you check your borrowing power instantly, helping young couples home loan applicants avoid surprises.
Step-by-Step Guide to Boost Approval Odds
Follow these numbered steps to maximize your chances. Start 1-2 months before applying for properties on https://www.homejourney.sg/search.
- Check and Improve Credit Score: Pull your free Credit Bureau Singapore report. Pay off debts to raise your score above 700; late payments hurt approvals.
- Reduce TDSR: Clear car loans or credit card balances. Aim for under 50% TDSR for better terms. Use Homejourney's tool to simulate.
- Secure IPA First: Apply via Homejourney at https://www.homejourney.sg/bank-rates – one form sends to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank. IPAs arrive in 3-5 days.
- Gather Documents Early: See checklist below. Singpass auto-fills income and CPF data on Homejourney.
- Choose Eligible Properties: Stick to HDB for higher LTV (up to 90% for first-timers) or condos with min S$200k loan per OCBC rules.
- Time Your Application: Apply when SORA rates are stable. Track via Homejourney.
Essential Documents Checklist
Organize these for hassle-free submission. Banks reject incomplete apps – Homejourney verifies everything for trust.
- NRIC/Passport for all applicants
- Latest 3-6 months payslips and bank statements showing salary credits
- IRAS Notice of Assessment (last 2 years)
- Employment contract or letter
- CPF statements (12 months) from CPFB website
- Option to Purchase (OTP) or Sales & Purchase Agreement
- HDB Flat Info if applicable (download from HDB portal)
- For self-employed: 2 years tax returns and commission statements
Pro tip: Scan and upload via Homejourney's Singpass integration – data auto-fills, cutting errors by 80%.
Key Regulatory Limits to Master
Singapore's MAS rules cap loan tenure at 35 years or age 65, whichever is shorter. LTV maxes at 75-90% based on buyer status. MSR ≤30% gross income for HDB; TDSR ≤60% including all debts.
For a S$1.5M condo loan over 25 years at 4% stress rate, monthly payments hit S$7,900 – need S$14,400+ income. Example: A young couple earning S$10k combined can borrow ~S$800k if TDSR-compliant.
Understanding SORA and Rate Trends
SORA (Singapore Overnight Rate Average) benchmarks most floating loans from DBS, UOB, etc. Banks add 0.8-1.5% margin. Fixed rates suit risk-averse newlyweds property buyers.
The chart below shows recent interest rate trends in Singapore:
As seen, 3M SORA hovered at 3.0-3.5% in late 2025. Time lock-ins when rates dip via Homejourney's real-time tracker.
Pro Tips for Young Couples and First-Timers
For young couples home loan or BTO loan couples: Joint applications boost income ceiling. Avoid new credit inquiries pre-application.
Insider tip: Min income S$4k-5k per bank; UOB needs S$450k+ for private homes. Clear debts 3 months prior. Use Homejourney's multi-bank system – skip branch visits, get side-by-side offers from 11 banks.
Common pitfalls: Overlooking CPF usage or high valuation gaps. Check 7 Common Mortgage Mistakes to avoid them.
What Happens After Approval
Post-IPA (valid 30-60 days), exercise OTP then submit formal app. Valuation takes 1 week; Letter of Offer follows. Sign within 7 days per UOB terms. Disburse at completion.
Track status on Homejourney – our brokers guide you. Refinancers: Compare rates easily post-purchase.
FAQ: Loan Approval for Singapore Buyers
How long for home loan approval in Singapore?
IPA: 3-5 days. Full approval: 1-3 weeks post-OTP and valuation.
What's the min income for bank loans?
Varies; typically S$4k+ gross. Use Homejourney calculator for your scenario.
Can foreigners improve approval chances?
Yes, with strong income proof and credit. LTV caps at 60-70%.
HDB vs Bank Loan: Which approves faster?
Bank via Homejourney is quickest for couples first home. See our guide.
How does TDSR affect my loan amount?
Caps total debt at 60% income. Pay down debts first.
Disclaimer: This is general advice. Consult Homejourney Mortgage Brokers or financial advisors. Rates as of Jan 2026; subject to change per MAS rules.
Ready to improve your loan approval chances? Start with Homejourney's free eligibility check and multi-bank app at https://www.homejourney.sg/bank-rates. Find your dream home safely on https://www.homejourney.sg/search – trusted by Singapore buyers.
