Income Requirements for Home Loans: Bank Rate Comparison Guide

In Singapore, the key income requirement home loan benchmarks are the Total Debt Servicing Ratio (TDSR) capped at 55% of gross monthly income and the Mortgage Servicing Ratio (MSR) at 30% for HDB flats and Executive Condominiums (ECs).[1][4][5] This guide breaks down minimum salary for mortgage, income eligibility, self-employed rules, and compares rates from top banks like DBS, OCBC, and UOB—use Homejourney's safe, verified tools to check your eligibility instantly.

This cluster article supports our pillar guide on Income Requirements for Home Loans in Singapore | Homejourney Guide, offering tactical bank comparisons and steps for approval in 2025-2026.Income Requirements for Home Loans in Singapore | Homejourney Guide

Understanding TDSR and MSR: Core Income Eligibility Rules

TDSR limits total monthly debts (including home loans) to 55% of gross monthly income for all properties, enforced by MAS since 2021 and unchanged in 2025.[1][5] MSR applies only to HDB flats and new ECs, capping home loan repayments at 30% of household income.[4][5]

For example, with a $10,000 monthly income, TDSR allows up to $5,500 in total debts, while MSR limits HDB/EC loans to $3,000 monthly.[1] Banks apply a 30% 'haircut' to variable income like bonuses or commissions, counting only 70% toward calculations.[1] Homejourney's mortgage eligibility calculator factors in these rules for precise income eligibility assessments.

Minimum Salary for Mortgage: What You Need

There is no fixed minimum salary for mortgage in Singapore, but practical thresholds apply based on property type. For a $500,000 HDB flat at 3.5% interest over 25 years, monthly repayments are about $2,500—requiring at least $8,300 gross income under MSR (30%).[1][4]

Private properties under TDSR need higher incomes due to no MSR cap but stricter debt assessments. First-time buyers earning $5,000-$7,000 monthly can qualify for smaller HDB units if debts are low.[1] Use Homejourney's real-time tools at bank rates page to simulate scenarios safely.

Self-Employed Mortgage and Variable Income Rules

Self-employed mortgage applicants use IRAS Notice of Assessment (NOA) from the past 2 years, with gross monthly income calculated as (trade income / 12) x 70%.[1] A freelancer averaging $6,000 monthly sees only $4,200 counted, limiting repayments to $2,310 under TDSR.

For variable income mortgage, banks haircut 30% on rentals, bonuses, or commissions, requiring 6-12 months' proof like payslips or tenancy agreements (min. 6 months remaining).[1] Rental income needs stamped IRAS agreements. Homejourney verifies these details transparently, helping self-employed users via Singpass integration for faster approvals.

Bank Rate Comparison: Top Lenders in 2025-2026

Compare packages from Homejourney partners: DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank. Rates tie to SORA (Singapore Overnight Rate Average), with spreads of 0.5%-1.5% for floating loans.[1]

DBS Bank: Market leader with SORA + 0.65% (effective ~3.2%), 2-3 year lock-ins. Best for HDB buyers; strong digital app. Pros: Fast processing (3-7 days); Cons: Higher penalties.
OCBC Bank: SORA + 0.70% (~3.25%), flexible refinancing. Ideal for families; integrates CPF well.
UOB Bank: SORA + 0.60% (~3.15%), lowest spreads. Great for investors; excellent customer service.
HSBC: Fixed rates at 3.0%-3.5% for 2 years, suits risk-averse. Strong for expats.
Standard Chartered: SORA + 0.75%, competitive for ECs. Quick Singpass approvals.

Smaller banks like Maybank (SORA + 0.80%) and CIMB offer promos for self-employed. Full comparison at https://www.homejourney.sg/bank-rates—see real-time updates from all partners.

SORA Trends and Rate Outlook

SORA is the primary benchmark, replacing fixed rates amid 2022-2024 hikes but easing in 2025.[1] Banks stress-test at higher rates for TDSR.

The chart below shows recent interest rate trends in Singapore:

As seen, 3M SORA hovers ~3.0%, favoring floating loans. Track live on Homejourney for timing.

Actionable Steps to Meet Income Requirements

Calculate Eligibility: Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator—input salary, debts, and get TDSR/MSR scores.
Gather Documents: Payslips (6-12 months), NOA for self-employed, tenancy proofs. Singpass auto-fills on Homejourney.
Reduce Debts: Pay off cards/car loans to free TDSR space—aim for under 20% non-housing debts.[1]
Compare & Apply: Submit one form on Homejourney; get offers from DBS, UOB, etc., simultaneously.
Boost Income Proof: Declare rentals or fixed deposits—banks recognize in-house assets better.[1]

Refinance tip: With easing rates, switch if current > SORA + 1%. Homejourney simplifies with multi-bank bids. See Income Requirements for Home Loans: Improve Approval | Homejourney for more.Income Requirements for Home Loans: Improve Approval | Homejourney

Homejourney: Your Trusted Partner for Safe Loan Decisions

Homejourney prioritizes user safety with verified rates, Singpass integration, and real-time comparisons—letting banks compete for you. Calculate borrowing power, apply securely, and find properties at https://www.homejourney.sg/search within budget. Disclaimer: This is general info; consult professionals for advice. Rates as of late 2025; subject to change.

FAQ: Income Requirements for Home Loans

What is the minimum income for a home loan in Singapore?
No strict minimum, but $8,000+ monthly supports typical HDB loans under MSR/TDSR.[1][4]

How do self-employed qualify for mortgages?
70% of average NOA income over 2 years counts; provide tax filings.[1]

What documents prove variable income?
Payslips, TAs for rentals (6+ months), bonuses over 6-12 months.[1]

Does rental income help TDSR?
Yes, 70% counted with valid TA and stamp duty.[1]

How to compare bank rates safely?
Use Homejourney at https://www.homejourney.sg/bank-rates for verified, real-time data.

Ready to check your income requirement home loan? Start with Homejourney's tools today and link back to our full pillar guide for complete insights.