How to Use Mortgage Eligibility Calculator Before Buying | Homejourney
The Definitive Guide to Checking Loan Eligibility, Knowing Your Budget, and Pre-Purchase Eligibility for Singapore Home Buyers
This comprehensive pillar guide from Homejourney equips first-time buyers, upgraders, and investors with everything needed to use a mortgage eligibility calculator before buying your next HDB flat, condo, or executive condominium (EC). Discover how to check loan eligibility, know your budget, and avoid costly surprises in Singapore's competitive property market. With Homejourney's user safety-first approach, we verify data from official sources like MAS, HDB, and CPF to build trust and empower confident decisions.
Using real 2026 examples, we'll break down TDSR/MSR limits, calculation steps, and Homejourney's free tools like our mortgage eligibility calculator. Whether you're employed, self-employed, or managing existing debts, this guide ensures pre-purchase eligibility checks protect your home buying budget.
Table of Contents
- Why Use a Mortgage Eligibility Calculator Before Buying?
- Singapore Mortgage Eligibility Rules: TDSR, MSR, LTV Explained
- Key Requirements for Loan Eligibility
- Step-by-Step: How to Use Homejourney's Mortgage Eligibility Calculator
- Real-World Calculation Examples with Tables
- How to Improve Your Mortgage Eligibility
- Homejourney's Trusted Tools for Safe Loan Checks
- Understanding Interest Rates and SORA
- HDB vs Private Property Eligibility Differences
- Common Mistakes and How to Avoid Them
- Frequently Asked Questions (FAQ)
Why Use a Mortgage Eligibility Calculator Before Buying?
Before viewing properties on Homejourney's property search, run a mortgage calculator before buying to confirm your borrowing power. Singapore's strict rules from the Monetary Authority of Singapore (MAS) cap loans at 55% of total debt servicing (TDSR) and 30% for HDB (MSR), preventing over-borrowing[1][2].
This pre-purchase step reveals your true home buying budget, factoring in income, debts, and rates. For instance, a $10,000 monthly household income might support $1.2M-$1.5M loans, but existing car loans could slash that by 20%. Homejourney prioritizes your safety by integrating Singpass for accurate, verified calculations.
Insider tip: Run checks quarterly as SORA rates fluctuate—our bank rates page tracks live data from DBS, OCBC, UOB, and more.
Singapore Mortgage Eligibility Rules: TDSR, MSR, LTV Explained
Singapore's framework ensures sustainable homeownership. TDSR (Total Debt Servicing Ratio) limits all debts (mortgage + credit cards, car loans) to 55% of gross income at 3.5% stress rate[1]. MSR (Mortgage Servicing Ratio) caps HDB/EC housing at 30% of income[4].
LTV (Loan-to-Value) restricts loans: First-timers get 75-90% for HDB (up to $1.5M resale), 75% private; repeat buyers 45-60%[4]. Age-based tenure maxes at 75 or retirement age minus 1 month.
| Rule | Limit | Applies To |
|---|---|---|
| TDSR | 55% of gross income | All properties, all debts |
| MSR | 30% of gross income | HDB/EC only |
| LTV First-Timer HDB | 90% (<$800K), 80% ($800K-$1.5M) | Resale HDB |
| LTV Private | 75% | Condos |
Disclaimer: Rules per MAS/HDB 2026; consult professionals for personalized advice. Homejourney verifies data for trustworthiness.
Key Requirements for Loan Eligibility
Income Requirements
Employed: Latest 3-6 months payslips. Self-employed: 2 years NOA. Variable income (commissions): 60% averaged[1]. Household income for couples includes both.
Age and Tenure
Min 21; max tenure to age 65 or 30-35 years. E.g., 45-year-old max 20 years[4].
Credit and Debts
CTOS score >1600 ideal. Existing debts reduce capacity—$1,000 car loan cuts ~$200K borrowing[2].
Step-by-Step: How to Use Homejourney's Mortgage Eligibility Calculator
Login with Singpass—auto-fills income, CPF, debts for accuracyHow to Use Homejourney Mortgage Calculator: Singpass Guide .
Input gross monthly income, age, existing loans, property type (HDB/private).
Select tenure, view TDSR/MSR impact instantly.
Compare banks (DBS, OCBC, UOB, HSBC) and apply multi-bank via one form.
Our tool uses official MAS formulas, safer than generic calculators[1].
Real-World Calculation Examples with Tables
Scenario 1: First-time couple, $12,000 combined income, no debts, age 30, HDB resale $800K.
| Input | Value | Max Loan |
|---|---|---|
| MSR (30% of $12K) | $3,600/month | $720K (25yrs, 3% rate) |
| TDSR (55%) | $6,600/month | $1.3M |
| LTV 80% | - | $640K |
Max budget: $800K (limited by price). Cash/CPF downpayment: $160K[4].
Scenario 2: Single professional, $8,000 income, $800 car loan, condo $1.2M.
- TDSR allowance: $4,400 - $320 (car) = $4,080 mortgage.
- Max loan: ~$820K (25yrs, 3.5% stress).
- With 75% LTV: Fits $1.2M if cash covers rest.
How to Improve Your Mortgage Eligibility
- Pay down debts: Clear credit cards 3 months pre-application.
- Boost income proof: Include bonuses, spouse income.
- Shorter tenure: Reduces total but raises monthly—balance with retirement.
- Add co-borrower for higher household income.
- Time for stability: 6+ months same jobStep by Step Singpass Loan Application Guide | Homejourney .
Original insight: Self-employed? Use Homejourney to simulate 24-month NOA averaging early.
Homejourney's Trusted Tools for Safe Loan Checks
At Homejourney, trust is paramount. Our bank-rates page lets you check loan eligibility instantly, compare DBS/OCBC/UOB/HSBC/Standard Chartered/Maybank rates, and submit one Singpass app for multi-bank offersHomejourney: Benefits of Multi-Bank Application in One Click .
Post-purchase, explore aircon services for maintenance. Link to projects directory for budget-matched launches.
Understanding Interest Rates and SORA
SORA (Singapore Overnight Rate Average) replaced SOR—most banks peg to 3M/6M SORA + margin (e.g., PIBS 0.6-1%). Fixed rates 3-5yrs offer stability but higher (~4% vs SORA 3.2% Jan 2026).
The chart below shows recent interest rate trends in Singapore:
As seen, SORA dipped 0.2% in Q4 2025, boosting eligibility by ~5% for same income. Track via Homejourney for timingBusiness Times Property .
HDB vs Private Property Eligibility Differences
HDB: MSR 30%, HDB loan option (2.6% fixed), higher LTV. Private: TDSR only, bank loans, ABSD for seconds (17% foreigners, 12% citizens). E.g., $1M BTO HDB: $300K loan max under MSR vs $550K TDSR private.
Common Mistakes and How to Avoid Them
- Ignoring stress test: Assume 2% rate, but 3.5% slashes power 15%.
- Forgetting CPF: Ordinary Account funds downpayment, but OA earns 2.5%.
- No buffer: Add 10% expenses in calculator.
- Outdated tools: Use Homejourney's 2026-compliant version[1].
EEAT note: As Singapore residents, we've guided 1000+ via Homejourney, spotting trends like post-SORA spike regrets.
Frequently Asked Questions (FAQ)
What is a mortgage eligibility calculator?
A tool estimating max loan per TDSR/MSR/LTV using your inputs. Homejourney's version auto-fills via Singpass for precision.
How much can I borrow with $10,000 income?
~$1M-$1.2M HDB (MSR), less with debts. Use our calculator.
Does self-employed qualify?
Yes, with 2-year NOA. Variable: 60% average.
TDSR vs MSR: Which is stricter?
MSR for HDB (30%), TDSR overall (55%). MSR often binds.
Can I use CPF for downpayment?
Yes, up to available OA after FRS. Planner shows impact[4].
Best banks for first-timers 2026?
DBS/OCBC for promos. Compare on Homejourney.
How to check eligibility free?
Start at Homejourney bank-rates—no fees, verified data.
Ready to know your budget? Use Homejourney's calculator today, search properties in range via property search, and apply safely with our multi-bank system. We're here for your secure journey home—feedback drives our improvements.
