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%, stabilizing income, and preparing all documents meticulously. Homejourney simplifies this with our bank-rates page, where you can calculate eligibility instantly and submit one application to DBS, OCBC, UOB, and more via Singpass for quicker approvals.

This cluster article dives into actionable steps for first-time home buyers in Singapore, building on our comprehensive First Time Home Buyer Singapore Mortgage Guide 2026 | Homejourney ">First Time Home Buyer Singapore Mortgage Guide 2026. Whether you're eyeing an HDB flat or private condo, these tactics address key bank criteria from MAS regulations like TDSR and LTV limits.

Understand Key Bank Approval Factors

Banks in Singapore evaluate applications based on creditworthiness, income stability, debt ratios, age, property valuation, and regulatory limits set by the Monetary Authority of Singapore (MAS). Your credit score reflects payment history and credit utilization; aim for above 700 by paying bills on time. Income must be verifiable, with salaried workers needing recent payslips and CPF statements, while self-employed face a 30% haircut on variable income.

The Total Debt Servicing Ratio (TDSR) caps at 60% of gross monthly income, including all debts like car loans plus the new mortgage. Loan tenure maxes at 35 years or until age 65, whichever is shorter. Property valuation by bank appraisers ensures the loan aligns with market value. For HDB loans, household income must not exceed S$14,000 monthly.

Improving these starts with self-assessment: use Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator to check TDSR before applying.

Step-by-Step Guide to Boost Approval Odds

Follow these numbered steps to maximize success:

1. Get In-Principle Approval (IPA) First: Apply for IPA via Homejourney's multi-bank tool to gauge borrowing power without commitment. This takes 1-3 days and guides your property search on https://www.homejourney.sg/search.
   
   
2. Optimize Your Credit Score: Check your score via Credit Bureau Singapore, clear overdue payments, and reduce credit card utilization below 30%. Avoid new credit inquiries 6 months pre-application.
   
   
3. Lower TDSR Proactively: Pay off small debts, consolidate loans, or delay non-essential purchases. For example, if earning S$8,000 monthly, keep total debts under S$4,800.
   
   
4. Stabilize Employment: Salaried applicants need 3 months' payslips; self-employed, 2 years' tax returns (IR8A/NOA). Secure an employment letter confirming stability.
   
   
5. Prepare Property Documents: Have Option to Purchase (OTP) ready; banks like UOB require it alongside NRIC and CPF statements.
   
   
6. Time Your Application: Apply when SORA rates are stable. The chart below shows recent interest rate trends in Singapore:

   As visible, 3M SORA has hovered around 3% in early 2026, favoring fixed-rate locks now.
   
   

7. Leverage Homejourney: Submit via our platform for one app to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and others. Singpass auto-fills data for speed and accuracy.

Essential Documents Checklist

Gather these for seamless processing:

• NRIC/Passport copies
• Latest 3 months' payslips and IR8A
• 2 years' Notice of Assessment (NOA) for self-employed
• CPF contribution statements (last 12 months)
• Bank statements (3-6 months)
• Employment pass/letter
• OTP or Sale & Purchase Agreement
• Proof of existing property sale (if applicable)

Tip: Scan and organize digitally. Homejourney's application pre-fills 80% via Singpass, reducing errors that cause 20% of rejections.

Pro Tips from Singapore Insiders

Avoid common pitfalls like over-borrowing per TDSR—many first-timers ignore credit card limits, spiking ratios unexpectedly. For HDB upgraders, time BTO ballot with IPA validity (3 months). Self-employed? Average 2-year income conservatively to beat the 30% haircut.

Insider hack: Apply mid-week (Tue-Thu) when bank queues are shorter; processing is faster. Foreigners/PRs: Open a local DBS/OCBC account early for better credit history. Read our 7 Common Mortgage Mistakes First-Time Buyers Make in Singapore | Homejourney ">7 Common Mortgage Mistakes First-Time Buyers Make to sidestep errors.

Post-approval, maintain upkeep—check Aircon Services ">aircon services for property value preservation.

What Happens After Submission

Expect bank valuation (1 week, S$200-500 fee), full review (2-4 weeks), and offer letter. Track status on Homejourney dashboard. If rejected, banks cite TDSR/credit; improve and reapply via multi-bank for better odds. Refinancers: Compare current SORA-pegged rates on our bank-rates page.

Disclaimer: This is general advice; consult Homejourney Mortgage Brokers or financial advisors for personalized guidance. Rates and rules per MAS as of 2026 may change.

Frequently Asked Questions (FAQ)

How long does loan approval take in Singapore?
IPA: 1-3 days; full approval: 2-4 weeks post-valuation.

What's the minimum income for a bank home loan?
No fixed minimum, but TDSR requires stable verifiable income; typically S$3,000+ for singles.

Can I improve approval if TDSR is over 60%?
Yes—pay debts, increase income proof, or buy cheaper property. Use Homejourney calculator first.

Do foreigners get home loans easily?
Possible with good credit/income, but higher ABSD (60%) and stricter LTV.

How does Homejourney make approvals faster?
Multi-bank submission via Singpass sends your app to 10+ banks instantly, with side-by-side offers.

Ready to improve your loan approval chances? Start with Homejourney's free eligibility calculator and apply securely at https://www.homejourney.sg/bank-rates. For full details, return to our First Time Home Buyer Singapore Mortgage Guide 2026 | Homejourney ">First Time Home Buyer Guide.