When your joint home loan application is complete in Singapore, the next steps are usually bank approval, issuance of a Letter of Offer, conveyancing, and final disbursement of funds at completion. For couples, families, and investors, understanding what happens after a joint application — and what you are legally responsible for — is critical to protecting your finances and making safe, confident decisions.
This article is a focused companion to Homejourney’s main mortgage pillar guide on joint home loans and Singapore home financing Bank Rates . Here, we address the most common Joint Home Loan Application Complete: Frequently Asked Questions so you know exactly what to expect once your joint mortgage, co-borrower mortgage, or couples home loan has been submitted.
What Happens After a Joint Home Loan Application Is Submitted?
Once your joint mortgage Singapore application is complete (whether for an HDB flat in Punggol or a condo in Queensway), the typical sequence is:
- Bank credit assessment – The bank reviews both applicants’ income, Central Provident Fund (CPF) usage, outstanding debts, and credit history against MAS Total Debt Servicing Ratio (TDSR) and, for HDB, Mortgage Servicing Ratio (MSR) guidelines.[3][5]
- Property valuation – A professional valuer assesses the property’s market value to determine the maximum loan amount under prevailing Loan-to-Value (LTV) limits.[3][5]
- Approval-in-principle (AIP) or final approval – If you submitted a full application with documents, you may receive a formal Letter of Offer instead of just an AIP.
- Appointment of lawyer – You or the bank appoints a law firm from the bank’s panel to handle conveyancing and registration of the mortgage with the Singapore Land Authority.
- Loan disbursement – Upon completion, the bank disburses funds to the seller or HDB, and your monthly instalments begin.
Homejourney helps you monitor this journey safely. After you submit your joint loan through our multi-bank application on the bank rates page Bank Rates , our mortgage team can update you on key milestones and highlight any issues early.
Key Concepts: Co-Borrower, Co-Owner and MAS Rules
In Singapore, for a joint home loan you must understand three connected roles: borrower, mortgagor, and owner.
- Borrower – The person(s) legally responsible for repaying the loan.
- Mortgagor – The person who gives the property as security to the bank.
- Owner – The legal owner registered on the title (for HDB, in HDB’s records; for private, in the Land Titles Registry).
According to MAS rules, all borrowers must usually also be mortgagors/owners of the property.[5] This is why in Singapore, to be a co-borrower, you typically must be a co-owner of the property as well.[1][5]
For example, if your father owns a 4-room HDB flat in Jurong West and wants you as a joint borrower to extend his loan tenure, you must be added as a co-owner under HDB’s rules.[1] That means you will be treated as owning an HDB flat, which may later affect your eligibility to buy another HDB flat or Executive Condominium.
Homejourney strongly encourages buyers to clarify these implications before submitting any joint application, especially in scenarios involving parents and children or siblings sharing a property. Our mortgage brokers can walk you through the long-term effects before you commit Bank Rates .
How Do Age and Income Affect a Joint Home Loan?
For joint home loans, banks commonly use an Income-Weighted Average Age (IWAA) to determine maximum tenure and LTV.[1][3] This is highly relevant for couples where one borrower is significantly older, or when children help parents with a mortgage.
The IWAA formula (simplified) is:[1]
(Borrower A age × Borrower A gross monthly income + Borrower B age × Borrower B gross monthly income) ÷ (A income + B income)
For example, imagine a real scenario:
- Borrower A (father) is 55, earning S$7,000/month.
- Borrower B (daughter) is 29, earning S$5,000/month and working in the CBD near Raffles Place MRT.
The IWAA may come out around their early 40s, allowing a longer tenure than the father alone, which can improve monthly affordability and LTV limits.[1] However, the daughter becomes co-owner and co-borrower, with all the obligations and restrictions that follow.
In practice, buyers in areas like Sengkang, Tengah, or Pasir Ris often use joint applications to stretch tenure so that monthly instalments stay manageable (for example, around S$2,000–S$2,500/month for a typical S$600k–S$700k flat, depending on rates and tenure). Always verify these numbers using Homejourney’s mortgage calculator before committing.
How Are Interest Rates Decided for Joint Home Loans?
Interest rates for joint home loans follow the same structure as single-borrower loans. The fact that there are two borrowers does not change the quoted package; instead, it often improves your eligibility and bargaining position with banks such as DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and RHB.
In Singapore, many current packages are:
- SORA-pegged floating packages – Linked to the 3M or 6M SORA plus a fixed spread, as guided by MAS benchmarks.
- Fixed-rate packages – Same rate for a lock-in period (typically 2–3 years), then reverting to a floating rate thereafter.
The chart below shows recent interest rate trends in Singapore:
Homejourney allows you to track live SORA movements and compare current rates from all major banks in one place on our bank rates page Bank Rates . This is particularly useful when your joint home loan application is complete but you have not yet signed the Letter of Offer — a small change in rate can significantly impact your monthly instalments over 25–30 years.
HDB Loan vs Bank Loan for Joint Borrowers
Joint applicants must also decide whether to take an HDB concessionary loan (if eligible) or a bank loan. Key differences include:
- HDB loan – Fixed 2.6% interest (pegged to CPF Ordinary Account rate + 1%), higher LTV (up to 80–85% subject to latest rules), lower initial cash downpayment, and tighter eligibility criteria as set out by HDB.[4]
- Bank loan – Market-based SORA or fixed rates, LTV up to 75% for most borrowers under current MAS limits, with at least 5% cash component for downpayment.[5]
For young couples buying a BTO in Tampines or Tengah, HDB loans may offer more predictability at the start. For buyers of private condos in areas like River Valley or Bukit Timah, bank loans are the norm. Joint borrowers must be evaluated together for both TDSR and, where applicable, MSR — meaning your combined monthly debt obligations (including car loans, student loans, and credit card instalments) must remain within MAS limits.[3][5]
Use Homejourney’s eligibility calculator to run scenarios for single vs joint borrowing and see how much you can safely afford .
What Are the Legal and Financial Risks of a Joint Mortgage?
Once a joint home loan application is complete and approved, both borrowers are typically jointly and severally liable. This means each of you is responsible for the full amount, not just “your half.”
Key risk areas include:
- Relationship changes – For couples, divorce or separation does not automatically release either party from the joint mortgage. The bank must consent to any restructuring or transfer.
- Income shocks – If one borrower loses their job, the other must still ensure instalments are paid. In practice, many couples in estates like Sengkang or Bukit Panjang build an emergency fund equal to 6–12 months of instalments.
- HDB and ABSD rules
References
