Income Requirements for Home Loans in Singapore | Homejourney Guide

Buying a home in Singapore almost always starts with one key question: “Is my income enough to get the home loan I need?” This definitive Homejourney guide explains every aspect of income requirement for home loan eligibility in Singapore – from minimum salary for a mortgage and TDSR/MSR rules, to self-employed mortgage and variable income mortgage assessments.

Whether you are eyeing a 4-room BTO in Punggol, a resale flat near Toa Payoh MRT, or a 2-bedder condo in Queenstown, understanding how banks and HDB assess your income will determine what you can safely afford.

Homejourney is built around user safety and trust. That means transparent explanations, verified data, and tools that help you calculate your borrowing power safely – before you commit.

Executive Summary: Income Requirements for Home Loans in Singapore

Income requirements for home loans in Singapore are governed mainly by MAS’s TDSR (55% cap) and, for HDB/EC buyers, the MSR (30% cap).[5][1] Banks also apply income “haircuts” for variable income and self-employed borrowers, usually recognising only about 70% of such income.[1][3]

For most borrowers, there is no official “minimum salary for mortgage”, but in practice you will generally need at least $2,500–$3,000 gross monthly income per borrower for a viable loan quantum, and higher if you have other debts. Your CPF usage, age, loan tenure, and property type (HDB vs private) all interact with your income to determine the maximum loan you can safely take.[3][5][8]

On Homejourney, you can:

Compare current rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank and more on the bank rates page: Bank Rates
Use the mortgage eligibility calculator to estimate your borrowing power instantly: Mortgage Rates
Submit one application and receive offers from multiple banks using Singpass/MyInfo for instant income and CPF verification
Search for properties within your safe budget range: Property Search

1. Overview: How Income Affects Home Loan Eligibility in Singapore
2. Key Rules: TDSR, MSR and Income Haircuts
3. Minimum Salary for Mortgage: Practical Benchmarks
4. Income Requirements by Property Type (HDB, EC, Private)
5. Variable Income Mortgage: Commissions, Bonuses & Rental Income
6. Self-Employed Mortgage: How Banks Assess Your Income
7. Worked Examples: How Much Can You Borrow?
8. Documents & Verification: Proving Your Income Safely
9. Insider Tips to Strengthen Your Income Profile
10. Homejourney Tools: Calculate, Compare and Apply Safely
11. Frequently Asked Questions

1. Overview: How Income Affects Home Loan Eligibility in Singapore

In Singapore, your income determines three core things when applying for a home loan:

Whether you qualify under MAS and HDB rules (TDSR, MSR)
How much you can borrow (maximum loan quantum)
How safely you can repay without overstretching your monthly budget

Unlike some countries that use simple income multiples (e.g., 4× annual salary), Singapore uses strict debt servicing ratios controlled by the Monetary Authority of Singapore (MAS). Your income is measured against all your monthly debt obligations, not just the new mortgage.[5][1]

If you are a first-time buyer of a 4-room BTO in Sengkang, for instance, HDB and your bank will look at:

Combined gross monthly income (e.g., $7,000 as a couple)
Other debts (car loan, personal loans, credit cards)
Loan tenure (e.g., 25 years vs 30 years)
Interest rate stress test (a higher assumed rate than today)
Property type (HDB vs EC vs private)

All these are combined under TDSR/MSR calculations to determine your maximum monthly instalment and hence your maximum loan.[1][3][5]

2. Key Rules: TDSR, MSR and Income Haircuts

2.1 Total Debt Servicing Ratio (TDSR)

TDSR is the key MAS rule that caps the share of your income that can go towards ALL debt repayments, including your home loan.[5][1] As of 2025, TDSR is capped at 55% of gross monthly income.[1][3][5]

Formula: TDSR = (Total monthly debt repayments ÷ Gross monthly income) × 100%[5]
Cap: Cannot exceed 55% for new housing loans or refinancing of residential properties[5][1]
Debts included: Home loans, car loans, personal loans, education loans, credit cards (minimum payments), renovation loans and other instalment plans[3]

Example: If you earn $6,000 a month, your total monthly debt repayments (including the new mortgage) cannot exceed $3,300 (55% of $6,000).[1][3]

This means there is no fixed "minimum salary for mortgage" in the regulations, but a higher income gives you more TDSR room – and therefore a higher possible loan.

2.2 Mortgage Servicing Ratio (MSR)

MSR is an additional rule that applies only to loans for:

HDB flats (BTO or resale)
Executive Condominiums (ECs) bought from a developer

MSR limits how much of your income can go to just your mortgage, on top of the TDSR limit for total debts.[5][8]

MSR cap: 30% of gross monthly income[5][8]
Formula: MSR = (Monthly mortgage instalment ÷ Gross monthly income) × 100%[5]

So for HDB and EC buyers, you must satisfy BOTH:

TDSR ≤ 55% of income
MSR ≤ 30% of income[5][8]

This is why some couples with adequate TDSR still cannot borrow enough for a larger HDB or EC—they run into the stricter MSR cap.

2.3 Income Haircuts (Variable & Self-Employed Income)

MAS requires banks to use conservative income estimates, especially for income that is not fixed. This is where variable income mortgage and self-employed mortgage assessment differs from pure salaried workers.

Fixed salary: Typically recognised at 100% of the stated base pay.[1][3]
Variable income (commissions, bonuses, allowances, rental, overtime): Banks commonly apply a 30% haircut, so only 70% of this income is counted for TDSR/MSR.[1][3]
Self-employed / freelancers: MAS guidance and banks’ practice usually recognise 70% of your average trade income from IRAS Notice of Assessment (NOA), again a 30% haircut.[1][3]

Example (variable income): If you earn a $4,000 basic salary and an average of $2,000 commission monthly, banks may recognise:

$4,000 × 100% = $4,000
$2,000 × 70% = $1,400
Recognised income = $5,400/month for TDSR/MSR calculations[1][3]

2.4 Summary Table: TDSR vs MSR

Rule	Cap	Applies To	What It Limits
TDSR	55% of gross monthly income[5][1]	All residential property loans (HDB, EC, private)[5]	Total monthly debt repayments (mortgage + other loans)
MSR	30% of gross monthly income[5][8]	HDB flats and ECs bought from developers[5]	Monthly mortgage instalment only

3. Minimum Salary for Mortgage: Practical Benchmarks

There is technically no MAS-specified minimum salary for mortgage. Instead, banks apply practical minimums based on internal credit policies, loan size and TDSR/MSR rules. However, in the Singapore context, some realistic income benchmarks are useful.

3.1 Typical Bank Minimums (Practical, Not Legal)

Based on current market practice, for owner-occupied residential properties:

Most banks prefer at least $2,500–$3,000 gross monthly income per borrower for smaller HDB loans.
For private properties, a practical income starting point is often $4,000–$5,000 monthly for a single borrower, or higher if you already have other debts.

These are not hard rules; some profiles with lower incomes may qualify for smaller loans if they have zero other debts and strong CPF contributions. Conversely, high-income borrowers can still fail TDSR due to large existing debts.

3.2 Income vs Property Price: Everyday Scenarios

From day-to-day experience with buyers in areas like Yishun, Tampines, and Clementi, a practical way to think about affordability is:

For a typical 4-room resale HDB (around $550,000 in many mature estates), many couples have combined income in the $7,000–$10,000 range.
For a mass-market 2‑bedder condo (around $1.2M in city-fringe areas like Queenstown or Bartley), many buyers have combined income around $14,000–$18,000, especially if there is a car loan.

These are practical patterns, not strict requirements. Your actual eligibility should always be tested with a calculator.

Use Homejourney’s mortgage eligibility calculator at Mortgage Rates to input your income, debts and target property price. You will see immediately whether your TDSR/MSR passes, and how much buffer you have for safety.

3.3 Conservative Rule of Thumb for Safety

MoneySense (the national financial education programme) recommends keeping your monthly housing instalments within 25–30% of your income, even though the MSR allows up to 30% and TDSR up to 55%.[7][8] In practice, this means:

If your household income is $8,000, aim for a monthly instalment around $2,000–$2,400 instead of maximising to $2,400 (30%) or beyond.

This ensures room for childcare, transport (especially if you’re driving from Jurong West or Punggol to CBD daily), and lifestyle expenses.

4. Income Requirements by Property Type (HDB, EC, Private)

4.1 HDB Flats: Income Ceilings and Loan Eligibility

For subsidised HDB flats (BTO or SBF), HDB imposes an income ceiling – not a minimum income, but a maximum household income allowed to buy the flat.[6][2]

Most HDB flats (3‑room and above): $14,000 monthly household income ceiling for families[6][2]
Extended/multi-generation families: $21,000 income ceiling[6][2]
2‑room Flexi for singles in non-mature estates: $7,000 income ceiling[6][2]

Separately, HDB and banks will assess your loan eligibility using TDSR and MSR, counting all income components such as basic salaries, regular allowances, commissions, and rental income, usually averaged over 12 months.[2]

For deeper Chinese-language reading on HDB-related financing, refer to Homejourney’s guides: