Understanding the income requirements for home loans in Singapore is critical before you commit to any property purchase. For most buyers, whether you qualify hinges on rules like TDSR, MSR, your income type (fixed vs variable), and how banks assess self-employed or commission-based income. Homejourney brings these rules together in one safe, trusted place so you can check your eligibility confidently before you sign any Option to Purchase.
This article is a focused companion to our main guide, Income Requirements for Home Loans in Singapore | Homejourney Guide Income Requirements for Home Loans in Singapore | Homejourney Guide . Here, we answer the most common Income Requirements for Home Loans: Frequently Asked Questions, with practical examples from real Singapore scenarios.
Key Concepts: TDSR, MSR, and Income Eligibility
In Singapore, banks and HDB do not use a fixed “minimum salary for mortgage”. Instead, your income eligibility is mainly governed by two regulatory ratios:
- Total Debt Servicing Ratio (TDSR) – For all property loans (HDB and private). Your total monthly debt obligations, including home loan, car loan, personal loans and credit cards, cannot exceed 55% of your gross monthly income.[1][3][5]
- Mortgage Servicing Ratio (MSR) – Only for HDB flats and Executive Condominiums (ECs) bought from developers. Your monthly housing instalment alone cannot exceed 30% of your gross monthly income.[1][5][8]
These limits are set by MAS to prevent over-borrowing and to keep buyers safe even when interest rates rise.[5] For example, if your gross monthly income is $6,000 and you have no other loans:
- Maximum total debt allowed under TDSR = 55% × $6,000 = $3,300.[1][3]
- If you are buying an HDB flat or EC from developer, your monthly housing instalment must also be ≤ 30% × $6,000 = $1,800 (MSR).[5][7][8]
In practice, banks will also stress-test your loan at higher interest rates to ensure you can still afford repayments in the future.[5] Homejourney’s built-in mortgage calculator at Bank Rates uses these MAS rules to give a realistic sense of your home loan eligibility.
How Do Banks Count Different Types of Income?
Singapore banks treat income differently depending on whether it is fixed or variable. This is crucial if you are asking about self-employed mortgage or variable income mortgage eligibility.
- Fixed salary income – Typically recognised at 100% of your basic salary, based on recent payslips and CPF contribution history.[1][3]
- Variable income (bonuses, commissions, allowances, rental income) – Usually subject to a 30% “haircut”, meaning only about 70% is counted towards your income for TDSR.[1][3]
- Self-employed / freelancers / full-commission – Banks commonly use your IRAS Notice of Assessment (NOA) and recognise about 70% of your assessed income.[1][3]
For example, MAS rules allow lenders to discount variable and self-employed income to account for uncertainty.[5] A 2025 example: a freelancer earning $4,500 per month effectively has only $3,150 (70%) counted for TDSR purposes, so at 55% TDSR, only around $1,733 can go towards all monthly debt repayments.[1]
Homejourney’s eligibility calculator at Mortgage Rates reflects these income haircuts automatically, so you do not need to compute them manually.
Example: How Much Income Do I Need for a $600,000 Loan?
To make this concrete, imagine you are buying a 4-room BTO in Punggol for around $550,000–$600,000 (common in newer launches near Punggol Coast MRT). If you take a $600,000 loan with 25-year tenure at 3% interest, your monthly instalment is roughly $2,850–$2,900.
For an HDB loan or EC from developer, you must pass both TDSR and MSR:
- MSR test (30% of income)
Required income ≈ $2,900 ÷ 30% = about $9,700 per month, assuming no other housing loans.[5][7][8] - TDSR test (55% of income)
Required income ≈ $2,900 ÷ 55% = about $5,270 per month, assuming no other debts.[1][3]
This means the stricter MSR is often the binding limit for HDB and EC buyers. If your combined household income is lower, you might need to either lower your purchase price, extend your loan tenure (subject to age limits), or increase your downpayment. Tools on Homejourney’s bank rates page Bank Rates can simulate different loan sizes, tenures, and rates instantly.
Is There a Minimum Salary for Mortgage Approval?
There is no official “one-size-fits-all” minimum salary for mortgage in Singapore. Instead, your required income depends on:
- Property price and loan amount (after accounting for downpayment and CPF usage).
- Loan tenure (shorter tenures mean higher monthly instalments and thus higher required income).
- Existing debts (car loans, student loans, credit cards, renovation loans).[3][5]
- Whether MSR applies (HDB/EC) or only TDSR (private).[5][8]
For practical planning, many financial educators and MoneySENSE recommend keeping your mortgage instalment within 25–30% of your income, even if TDSR allows more.[7][8] This buffer helps with rising costs and unexpected events. Homejourney’s affordability calculator at lets you test conservative vs aggressive scenarios before you commit.
Income Limits vs Income Requirements: HDB Flats and ECs
Do not confuse HDB’s income ceilings (maximum household income to qualify for certain flat types) with MAS’s income requirement home loan rules.
- For subsidised HDB flats, the usual income ceiling is $14,000 for most families.[2][6]
- For Executive Condominiums, the monthly household income ceiling is also $16,000–$16,000+ historically, and currently $16,000 for many projects.[6]
These caps determine if you qualify to buy the flat, not whether the bank will approve your mortgage. For the loan itself, MAS TDSR and MSR still apply.[5][8] For example, a couple earning $9,000 combined may be under the HDB income ceiling and qualify to buy a 4-room BTO in Sengkang, but if they have heavy debts (e.g., car loan and personal loan), they could still fail TDSR and be unable to borrow enough.
To avoid surprises, check both:
- HDB scheme eligibility at HDB’s official site.
- Loan eligibility and indicative quantum via Homejourney’s calculator at .
Self-Employed, Freelancers, and Variable Income Buyers
Many Homejourney users are self-employed, work in sales, or receive substantial bonuses. The self-employed mortgagevariable income mortgage Typical bank practices (aligned with MAS guidelines) include:[1][3][5] Insider tip from local experience: self-employed buyers in areas like Tiong Bahru, Joo Chiat or Upper Thomson often prepare extra documentation
Banks usually require IRAS NOA for the last 1–2 years. About 70% of your declared trade income is recognised for TDSR.[1][3]
Basic salary is counted at 100%, while commissions and variable allowances are usually haircut by 30%.[1][3]
Recognised with documentation (tenancy agreement with ≥6 months remaining and IRAS tax filings), but also haircut by 30%.[1]
References
