How to Improve Your Loan Approval Chances | Homejourney

To improve your loan approval chances in Singapore, focus on strengthening your credit score, stabilizing income proof, reducing debt ratios, and preparing complete documentation before applying. Homejourney simplifies this by offering an eligibility calculator and multi-bank applications via Singpass at https://www.homejourney.sg/bank-rates, helping young couples and first-time buyers secure better rates from DBS, OCBC, UOB, and more[1][2][5].

This cluster article builds on our pillar guide to Singapore home buying timelines by providing tactical steps for mortgage success. Whether you're a couple eyeing your first HDB flat or upgrading, these strategies align with MAS rules like TDSR and LTV limits to maximize approvals in a competitive market[7].

Understand Key Eligibility Criteria First

Singapore banks and HDB assess loans based on minimum monthly income (often S$1,500+ for salaried, higher for self-employed), age (typically 21-65), residency status, and compliance with MAS property loan rules including TDSR at 55% of gross income and LTV up to 75% for first loans[1][6][7].

For young couples home loan or married couple mortgage applicants, combined household income under S$14,000 qualifies for HDB loans, but banks offer flexibility for higher earners[6]. Foreigners face stricter LTV (up to 60% without prior loans) and need strong credit[2][4]. Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator to check your borrowing power instantly.

Step-by-Step Guide to Boost Approval Odds

Follow these actionable steps tailored for newlyweds property buyers and couple first home seekers to prepare effectively.

Check and Fix Your Credit Score: Pull your Credit Bureau Singapore report (free annually). Pay off overdue cards and keep utilization under 30%. A score above 1,400 significantly improves chances[2].
Stabilize Income: Salaried? Ensure 3-6 months of payslips. Self-employed? Gather 2 years' tax assessments (NOAs) and business proofs. Couples: Combine incomes for better TDSR headroom[1][3][5].
Reduce Debt Burden: Pay down existing loans; aim for total commitments under 40% of income pre-TDSR. Avoid new credit applications 6 months prior[7].
Get In-Principle Approval (IPA) Early: Apply via Homejourney's multi-bank system—one submission to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and others. Singpass auto-fills data for speed[1][4].
Match Property to Budget: Target properties within your IPA limit. Search verified options on Homejourney at https://www.homejourney.sg/search.

Pro tip for BTO loan couples: Apply for HDB Flat Eligibility (HFE) letter after IPA to confirm max loan quantum[1].

Essential Documentation Checklist

Complete docs prevent 70% of rejections. Prepare these for bank loans (HDB has similar lists):

NRIC/Passport copies
Latest 3 months' payslips and IR8A
Latest NOA from IRAS (2 years for self-employed)
12 months' CPF statements from CPF Board
Bank statements (3-6 months)
Option to Purchase (OTP) or SPA
HDB flat info if owning (from HDB portal)
Proof of earnings for commission-based[3][5]

Download via Singpass for accuracy. Homejourney's platform verifies and submits digitally, reducing errors and speeding processing to days[2].

Impact of Interest Rates on Approvals

Current SORA-based rates (around 3% for 3M compounded) affect affordability under TDSR. Banks stress-test at +3.5% to ensure repayment capacity[7].

The chart below shows recent interest rate trends in Singapore:

As seen, rates stabilized post-2025 peaks, favoring fixed-rate seekers. Compare live rates from partner banks on Homejourney to lock in lows.

Insider tip: Time applications when SORA dips; track via Homejourney for alerts.

Common Pitfalls and Pro Tips for Success

Avoid these to improve odds by 50%:

Mismatched Property Value: Bank valuation often lower than purchase price—budget 5-10% buffer[4].
Incomplete Docs: Missing CPF statements delay by weeks[5].
Ignoring TDSR: Factor all debts; use Homejourney calculator for simulations.

Pro tips: For upgraders, sell existing HDB first for cleaner finances. Newlyweds: Joint applications boost quantum. Refinancers: Check min loan amounts (e.g., UOB S$450k+)[3]. Connect with Homejourney Mortgage Brokers via https://www.homejourney.sg/bank-rates for personalized advice.