Getting a mortgage after bankruptcy in Singapore is possible, but approval is stricter, interest rates may be higher, and not all banks will treat a discharged bankrupt application the same way. The key is to compare how major banks evaluate post-bankruptcy borrowers, rebuild your profile strategically, and use a trusted platform like Homejourney to safely compare rates and submit a strong, well-documented application.
This cluster guide focuses on Getting a Mortgage After Bankruptcy vs Other Banks Comparison, and links back to Homejourney’s main expert guide on special mortgage scenarios such as post-bankruptcy mortgage and bankruptcy credit recovery. For a deeper foundation, refer to: Mortgage After Bankruptcy in Singapore: Homejourney Expert Guide 2026 .
How Singapore Banks View a Discharged Bankrupt Home Loan Application
In Singapore, bankruptcy is a serious legal status governed by the Insolvency, Restructuring and Dissolution Act. Once you are declared bankrupt, the Official Assignee (OA) manages your bankruptcy estate and you must make monthly contributions until your target contribution is paid and you are discharged.[5][3][9] Bankruptcy can affect your ability to get loans and mortgages for years after discharge, as banks see it as a sign of previous high credit risk.[4]
From practical experience dealing with borrowers in areas like Sengkang, Punggol and Jurong West, most major banks will look at three broad factors for mortgage after bankruptcy applications:
- Time since discharge – Many banks prefer at least 3–5 years after discharge before considering a full-priced private property loan, though some may consider earlier for HDB if your income is stable.
- Credit recovery evidence – Clean repayment history on smaller lines of credit (e.g. telco bills, small credit card limit, or renovation loan) since discharge.
- Current debt and income profile – Compliance with MAS Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) rules, acceptable debt-to-income, and verifiable stable income.
There is no MAS regulation that outright bans ex-bankrupts from getting a mortgage, but banks must maintain prudent lending standards and will apply internal risk-based criteria. This is why Getting a Mortgage After Bankruptcy vs Other Banks Comparison is so important: each bank can interpret your risk differently and offer different rates and conditions.
Key Differences: Mortgage After Bankruptcy vs Standard Borrower
For a typical borrower with clean credit, banks in Singapore (DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, Citibank) primarily assess income, existing debt, and property type. For a discharged bankrupt home loan application, the same banks often add extra layers:
- Stricter internal credit score cut-offs – Even if you meet MAS TDSR, your internal score may fall below normal approval thresholds due to past bankruptcy.
- Lower maximum Loan-To-Value (LTV) – Where a typical first-time buyer might get up to 75% LTV on a private property, you may only be offered 55–65% depending on the bank and your recovery track record.
- Higher interest margin – Some banks may add a small spread on top of their usual SORA or board rates for higher-risk profiles.
- More documentation – Expect to provide bankruptcy discharge papers, OA letters, explanations of the cause of bankruptcy, and proof of improved financial habits.
For a safe, trusted comparison of how these conditions translate into actual rates and monthly repayments, you can use Homejourney’s bank rates page: Bank Rates .
Rate Types and How They Affect Post-Bankruptcy Borrowers
Most Singapore home loans today are pegged to:
- SORA-based floating packages – 1M or 3M SORA plus a bank spread.
- Fixed-rate packages – Fixed for 1–5 years, then usually revert to a SORA or board rate.
- Board rate packages – Pegged to the bank’s internal rate, which the bank can adjust at its discretion.
For a post-bankruptcy mortgage, some borrowers prefer fixed rates in the first 2–3 years to stabilise repayments while they continue rebuilding their credit, especially if their income is just recovering after discharge.
The chart below shows recent interest rate trends in Singapore:
Using Homejourney’s real-time SORA tracking and rate comparison tools on Bank Rates , you can see how a small change in SORA or bank spread can affect your monthly instalments, which is crucial when you are still rebuilding your financial buffer after bankruptcy.
Bank-by-Bank: How Major Lenders Typically Treat Ex-Bankrupts
Each bank has its own internal risk model, and policies can change. The points below are based on common patterns observed in the market, but you must always confirm current criteria with Homejourney’s mortgage brokers or the bank directly. These are not formal promises, but a realistic starting point.
DBS, OCBC, UOB
These three local banks hold a dominant share of the Singapore home loan market and are often the first choice for both HDB and private property buyers.
- Market position – Large retail banking base, competitive SORA packages, strong digital platforms.
- Attitude to ex-bankrupts – Typically conservative. Many cases require at least 3–5 years since discharge, clean credit since, and strong income stability before approval.
- Products – Wide range of SORA-pegged, fixed-rate, and sometimes hybrid packages. Lock-in periods often 2–3 years.
- Pros – Competitive rates, familiar brand trust, efficient processing for straightforward cases.
- Cons for ex-bankrupts – Harder to secure approval if your credit recovery is recent, or if you have variable income (e.g. self-employed in F&B or gig economy).
For example, a discharged bankrupt living in a 4-room HDB in Punggol, discharged 4 years ago, with stable salaried income above S$6,000 and zero outstanding unsecured debt, may stand a fighting chance at these banks—especially if the loan quantum is moderate and LTV kept low.
HSBC, Standard Chartered, Citibank
These international banks tend to be more focused on affluent and mass-affluent clients, but also offer competitive packages for standard borrowers.
- Market position – Strong in higher-income segments; attractive promotional rates for certain tenures.
- Attitude to ex-bankrupts – Often require strong income, larger downpayments, and clear explanation of bankruptcy cause (e.g. business failure rather than chronic overspending).
- Products – Mix of fixed and SORA-based packages; some offer interest-offset facilities for higher-income borrowers.
- Pros – May consider more complex income structures (e.g. overseas income, bonus-heavy compensation) for the right profile.
- Cons for ex-bankrupts – If your income or savings are modest, approval odds are lower compared to local banks.
Maybank, CIMB, RHB, Public Bank, Hong Leong Bank
These regional banks are active in the Singapore mortgage market and can sometimes be more flexible in niche situations.
- Market position – Competitive home loan players with a focus on rate attractiveness and service.
- Attitude to ex-bankrupts – Case-by-case. Some may be open if your property is in a strong location (e.g. city fringe like Geylang/Aljunied or mature towns like Ang Mo Kio), LTV is low, and income is well-documented.
- Products – SORA and fixed-rate packages, often with 2–3 year lock-ins, sometimes promotional legal subsidies.
- Pros – Occasionally more flexible for refinancing when you have already proven repayment history for several years.
- Cons – Branch network and digital experience may be less familiar if you mostly bank with local giants.
Comparing these banks one by one manually is challenging, especially for a sensitive profile like a discharged bankrupt. Homejourney simplifies this by letting you compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank in one place via Bank Rates .
Practical Steps to Improve Your Post-Bankruptcy Mortgage Approval Odds
Homejourney strongly prioritises user safety and responsible borrowing. Before you commit to a loan, especially after bankruptcy, take these tactical steps:
- Confirm your discharge status and timeframe
Get official confirmation of your discharge date from the Insolvency Office or Official Assignee.[8][9] Many banks will ask for this document. If you are not yet discharged, focus on completing your target contribution first.[3][5] - Rebuild your credit history deliberately
Use small, manageable commitments (e.g. telco contract, low-limit credit card fully paid each month) to show consistent on-time payments for at least 24 months. Avoid new unsecured loans unless absolutely necessary. - Reduce your overall debt ratio
MAS TDSR limits how much of your gross monthly income can go to debt servicing; keeping other debts low gives you more borrowing room. Pay down outstanding hire-purchase or personal loans where possible. - Prepare a clear explanation letter
Explain the cause of your bankruptcy (e.g. failed business during COVID, medical emergency) and show what has changed—steady job, better budgeting, emergency savings. Banks and underwriters appreciate honest, consistent stories supported by documents. - Increase your downpayment
A lower LTV means lower risk to the bank. If you have rebuilt savings, consider a higher cash/CPF downpayment to make your application more attractive. - Use Homejourney’s mortgage eligibility tools
Before approaching banks, calculate your borrowing power with Homejourney’s calculator at Mortgage Rates or . This reduces the risk of unnecessary rejections that can further impact your credit file.
For a detailed timeline and what to expect at each stage, see: Getting a Mortgage After Bankruptcy: Application Timeline with Homejourney . For costs and rate implications, refer to: Getting a Mortgage After Bankruptcy: Rates & Fees Explained | Homejourney .
Comparing Banks Safely: Why Homejourney Matters More After Bankruptcy
When your history includes bankruptcy, transparency and safety become even more important. Homejourney is built around these principles:
- Verified bank rates in one dashboard – View real-time updates for all major banks on Bank Rates , avoiding outdated or misleading offers.
- Mortgage eligibility calculator – Check if your income, existing debts, and loan amount are realistic before making any application.
- Multi-bank application with Singpass/MyInfo – Submit one secure application via Bank Rates , auto-fill your details using Singpass to reduce errors and speed up approvals.
- Homejourney Mortgage Brokers – Get guidance from specialists who understand how different banks treat ex-bankrupts and which lenders are more open to your profile.
- User safety and privacy – Your sensitive financial details are handled through secure, standardised processes rather than scattered across multiple manual applications.
Once you know your realistic loan budget, you can use Property Search to find properties within your price range, and Projects Directory to evaluate specific condo or HDB projects across Singapore.
Realistic Example: Post-Bankruptcy Buyer in an HDB vs Bank Comparison
Consider a Singaporean buyer discharged from bankruptcy 5 years ago, now working as a senior executive in an industrial firm in Jurong with S$7,000 monthly income, no outstanding unsecured loans, and a desire to buy a 4-room HDB resale flat in Tampines near MRT for around S$650,000.
Using Homejourney’s tools, this buyer can:
- Estimate maximum loan size based on MSR and TDSR.
- Model monthly instalments at different SORA levels using the interest rate trends chart and calculator.
- Compare how DBS, OCBC, UOB and a regional bank like Maybank differ in rate packages and estimated monthly payments.
- Submit a single multi-bank application, attaching discharge documents and explanation letter, to let banks compete for the best offer.
In practice, one local bank might offer a slightly lower rate but demand a lower LTV, while another offers a slightly higher rate but allows a higher loan quantum. Homejourney helps you see these trade-offs clearly, instead of relying on guesswork.
Post-Approval: Protecting Your Fresh Start
After securing a loan, safeguarding your financial recovery is as important as getting the approval.
- Budget for ongoing costs – Beyond the mortgage, factor in conservancy charges, property tax, insurance, and maintenance (e.g. regular servicing of your air-conditioning via Aircon Services ).
- Avoid over-leverage – Just because a bank is willing to lend a certain amount does not mean it is safe for your situation. Use Homejourney’s calculators conservatively.
- Set up emergency savings – Ideally 6–12 months of expenses, especially if you are self-employed or in cyclical industries.
- Schedule refinance reviews – Once your repayment track record is strong for a few years, you may be able to refinance at better rates. Homejourney’s refinancing tools and guides simplify this process: Bank Rates .
