How to Improve Your Home Loan Approval Chances in 2026
Getting approved for a home loan in Singapore isn't just about finding the lowest rate—it's about presenting yourself as a reliable borrower to banks. While mortgage rates have fallen significantly in 2026, with fixed rates now ranging from 1.45% to 1.75% depending on your loan type and amount, banks have simultaneously tightened their lending criteria.[1] Understanding what banks assess and how to strengthen your application can dramatically improve your approval chances and help you secure better rates.
This guide walks you through the key factors banks evaluate, practical steps to improve your eligibility, and how Homejourney's tools can streamline your application process across multiple banks simultaneously.
Understanding What Banks Look For
Singapore banks use a standardized framework to assess mortgage applications, focusing on your ability to repay and your creditworthiness. The primary metric is your Total Debt Servicing Ratio (TDSR), which cannot exceed 60% of your gross monthly income.[1] This means if you earn S$10,000 monthly, your total monthly debt obligations (including the new mortgage) cannot exceed S$6,000.
Beyond TDSR, banks evaluate your credit history, employment stability, savings rate, and the property's value. Your credit score—tracked by the Credit Bureau Singapore (CBS)—acts as a barometer of your reliability. A score above 700 is considered healthy, while scores below 600 significantly reduce approval chances.
Employment type matters considerably. Salaried employees with stable positions at established companies face easier approval than self-employed individuals or contractors, who must provide additional documentation like audited financial statements and tax returns.
Step-by-Step Actions to Strengthen Your Application
1. Check and Improve Your Credit Score
Your first action should be obtaining your credit report from CBS. You're entitled to one free report annually. Review it carefully for errors—incorrect records can unfairly damage your score. If you find discrepancies, dispute them immediately with the relevant creditor or the CBS.
To improve your score before applying, pay all bills on time for at least 3-6 months. Reduce outstanding credit card balances to below 30% of your credit limit. Avoid applying for new credit cards or personal loans in the months leading up to your mortgage application, as multiple inquiries signal financial desperation to lenders.
2. Reduce Your Existing Debt
Since TDSR includes all your existing obligations, clearing high-interest debts before applying gives you more borrowing capacity. Prioritize credit card balances and personal loans. Even paying down S$500-S$1,000 of credit card debt can free up S$300-S$600 in monthly servicing capacity, potentially allowing you to borrow an additional S$60,000-S$120,000.
If you have car loans or student loans, don't rush to pay them off entirely unless you have surplus cash. Instead, focus on maintaining perfect payment records, which demonstrates financial discipline to banks.
3. Build Your Savings and Down Payment
Banks view substantial savings as proof of financial discipline. Aim to save at least 20% of the property's purchase price for your down payment. For a S$800,000 property, this means S$160,000 in savings. This demonstrates you can manage money responsibly and reduces the bank's risk.
Keep your savings in a dedicated account for 3-6 months before applying. Banks want to see consistent savings patterns, not lump sums that appear suspicious. Document where large deposits come from—gifts from parents should be accompanied by a statutory declaration confirming they're non-refundable gifts.
4. Maintain Employment Stability
Avoid changing jobs within 6 months of your mortgage application. If you must change positions, ensure it's a promotion or lateral move to a similar role—not a career change. Banks view job-hopping as a red flag. If you're self-employed, maintain consistent income for at least 2-3 years with audited accounts to strengthen your case.
5. Organize Your Documentation Early
Banks require extensive documentation. Preparing these documents 2-3 months before applying accelerates the process and demonstrates professionalism:
- Income verification: Latest 3 months of payslips, latest 2 years of tax returns (Notice of Assessment), employment letter confirming your position and salary
- CPF statements: Latest CPF statement showing your Ordinary Account and Special Account balances (critical for HDB purchases)
- Financial documents: Bank statements from all accounts for the past 3 months, proof of savings, investment statements
- Property documents: Sale and Purchase Agreement, latest property valuation, HDB Resale Statement (if applicable)
- Credit documents: CBS credit report, list of all outstanding loans and credit cards with current balances
- Personal documents: NRIC, passport, marriage certificate (if applicable), divorce decree (if applicable)
Having these ready before contacting banks shows you're a serious, organized applicant—qualities lenders appreciate.
Bank-Specific Approval Strategies
Different banks have slightly different approval criteria. DBS, OCBC, UOB, HSBC, Standard Chartered, and Maybank each weigh factors differently.[1] DBS, for instance, has historically been more conservative with TDSR calculations, while some smaller banks may be more flexible with self-employed applicants.
This is where Homejourney's multi-bank application advantage becomes valuable. Rather than applying to one bank and waiting weeks for a decision, you can submit your application once through Homejourney's platform and receive assessments from multiple banks simultaneously. This increases your approval chances significantly—if one bank declines, others may approve.
Before applying, use Homejourney's mortgage eligibility calculator to understand your borrowing capacity. Input your income, existing debts, and desired loan amount. The calculator uses actual bank TDSR formulas to show you realistic borrowing limits, preventing you from wasting time on properties outside your reach.
Leveraging Homejourney's Application Process
Homejourney streamlines mortgage applications in ways that directly improve your approval chances:
Singpass Integration: When you apply via Homejourney using Singpass, your income, employment, and CPF data auto-fill instantly from government records. This eliminates documentation errors and speeds up bank verification. Banks receive verified data directly from official sources, increasing confidence in your application.
One Application, Multiple Banks: Instead of completing separate applications for DBS, OCBC, UOB, and others, you submit once through Homejourney. Your details go to all partner banks simultaneously. This approach is superior because: (1) you avoid multiple credit inquiries damaging your score, (2) banks see you're comparing rates (not desperate), and (3) you receive competing offers within days rather than weeks.
Real-Time Rate Comparison: Homejourney displays current rates from all banks, updated daily. In February 2026, promotional fixed rates start from 1.45% for larger loans, while standard rates range from 1.50% to 1.75%.[1] Floating rates are available from 1M SORA+0.25% (currently around 1.36%).[1] Seeing these rates helps you decide whether to lock in fixed rates now or wait for floating options.
Personalized Mortgage Broker Support: When you apply via Homejourney's bank-rates page, you're connected with experienced mortgage brokers who understand each bank's specific requirements. They identify which banks are most likely to approve your application based on your profile and guide you through the process, increasing approval odds.
Common Mistakes That Reduce Approval Chances
Mistake 1: Applying Immediately After Major Purchases Don't apply for a mortgage within 3 months of buying a car or taking a personal loan. These new obligations inflate your TDSR and reduce borrowing capacity.
Mistake 2: Maxing Out Credit Cards Before Applying Banks see credit card utilization as part of your debt profile. If you're using 90% of your credit limit, banks assume you're financially stretched, even if you pay balances monthly.
Mistake 3: Inconsistent Income Documentation If your payslips show varying amounts, banks question income stability. If you receive commissions or bonuses, provide 2-3 years of tax returns showing average income, not just recent payslips.
Mistake 4: Unclear Source of Funds Large deposits without explanation trigger anti-money laundering checks. If you received a gift, have the donor provide a statutory declaration. If you sold an asset, provide the sale agreement.
Mistake 5: Not Comparing Rates Across Banks Applying to only one bank means accepting whatever rate they offer. Banks in Singapore offer rates spanning 0.30% difference—that's S$3,000+ annually on a S$1 million loan. Homejourney's comparison tool ensures you don't leave money on the table.
Timeline and What to Expect
Understanding the approval timeline helps you plan accordingly. From application submission to loan disbursement typically takes 4-8 weeks:
- Weeks 1-2: Bank reviews your application and requests any missing documents
- Weeks 2-3: Bank obtains property valuation and verifies your employment
- Weeks 3-4: Credit committee reviews your file and makes approval decision
- Weeks 4-6: You receive formal offer letter; you review and sign loan agreement
- Weeks 6-8: Final checks completed; funds disbursed to seller's lawyer
This timeline assumes no complications. If banks request additional documentation or if your employment verification takes longer, the process extends. Using Homejourney's multi-bank approach compresses this timeline because competing banks expedite decisions to win your business.
Special Considerations for Different Borrower Types
First-Time Home Buyers
First-time buyers often worry about limited credit history. If this is your first mortgage, banks focus heavily on your savings rate and employment stability. Having 6+ months of consistent savings deposits demonstrates financial discipline. Consider getting a guarantor (parent or spouse) if your income alone doesn't meet TDSR requirements—this significantly improves approval chances.
Self-Employed and Business Owners
Banks require 2-3 years of audited financial statements showing consistent or growing income. Your personal and business finances must be clearly separated. Maintain meticulous accounting records and avoid large unexplained transactions. Some banks are more flexible with business owners—this is where Homejourney's multi-bank submission advantage shines, as you'll find which banks view your business profile favorably.
Foreign Workers and Expats
If you're on an Employment Pass, banks require your employment letter confirming visa sponsorship and minimum 2 years remaining on your pass. Some banks limit loan tenures to match your visa validity. Having a local guarantor strengthens your application significantly.
Refinancing Borrowers
If you're refinancing an existing HDB or private property loan, banks assess your payment history on the current loan. A clean repayment record (no late payments) makes refinancing straightforward. In February 2026, refinancing rates start from 1.55% fixed for 2-year terms, offering substantial savings compared to older mortgages.[1] Use Homejourney's refinancing calculator to determine potential monthly savings before applying.
The Homejourney Advantage in Approval
Homejourney's platform is designed specifically to increase your approval chances through transparency and efficiency. When you use Homejourney's bank-rates page, you benefit from:
- Verified Bank Rates: All rates displayed are current as of February 2026, updated daily from official bank sources
- Eligibility Pre-Screening: Our calculator shows realistic borrowing limits before you apply, preventing disappointment
- Simultaneous Multi-Bank Submission: One application reaches DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other partners
- Singpass Auto-Fill: Your verified government data reduces documentation errors and speeds verification
- Expert Guidance: Homejourney's mortgage brokers provide personalized advice based on your specific profile
- Transparent Comparison: Compare final offers side-by-side before committing, ensuring you select the best rate and terms
This comprehensive approach—combining education, tools, and expert support—positions you as a strong applicant and maximizes your approval chances across multiple banks simultaneously.
Frequently Asked Questions
What's the minimum credit score needed for mortgage approval in Singapore?
While banks don't publish minimum credit scores, a CBS score above 700 is generally considered healthy for mortgage approval. Scores between 600-700 may face additional scrutiny, while scores below 600 significantly reduce approval chances. Rather than focusing on a specific number, maintain consistent on-time payments across all obligations.
Can I improve my TDSR by adding a co-borrower?
Yes. If you add a spouse or family member as a co-borrower, their income counts toward your combined borrowing capacity, while their existing debts also count. This works well if your co-borrower has higher income and lower existing debts than you. However, both borrowers must be jointly liable for the full loan amount.
