How to Get Pre-Approved for a Mortgage: Frequently Asked Questions

Mortgage pre-approval, also known as In-Principle Approval (IPA) or loan pre-approval, is a bank's conditional commitment on how much they can lend you based on your income, credit, and debts. This essential step helps Singapore homebuyers like first-time HDB upgraders or private property investors know their budget before viewing properties on Homejourney's property search. At Homejourney, we prioritize your safety by verifying lender details and offering a trusted multi-bank application process.

Securing pre-approved home loan or AIP mortgage typically takes 1-7 days and strengthens your negotiating power with sellers. This cluster article answers the most common questions from Singapore property seekers, linking back to our pillar guide on How to Get Mortgage Pre-Approval in Singapore: Homejourney Guide ">How to Get Mortgage Pre-Approval in Singapore for the full process.

What is Mortgage Pre-Approval (IPA) and Why Do You Need It?

In Singapore, IPA is a non-binding letter from banks like DBS, OCBC, or UOB stating your eligible loan quantum, tenure, and indicative rates. It factors in Total Debt Servicing Ratio (TDSR) at 55% max and Mortgage Servicing Ratio (MSR) for HDB at 30%.[1][2][5] Unlike full approval, IPA skips property valuation but includes credit and bankruptcy checks.

You need IPA before exercising an Option to Purchase (OTP), as agents often require it to avoid option fee forfeiture (typically S$1,000-S$10,000).[3] For example, a family earning S$10,000 monthly with minimal debts might get IPA for S$800,000 on a S$1.2M Punggol HDB resale, covering 75% LTV under rules.[1]

Homejourney simplifies this: Use our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator for instant estimates from partner banks like HSBC and Standard Chartered.

Step-by-Step: How to Get Pre-Approved for a Mortgage in Singapore

Follow these actionable steps for how to get pre-approved for a mortgage:

Check Eligibility Online (Instant): Input income, debts, and CPF on Homejourney's tool. Skip manual calculations—Singpass auto-fills data for accuracy.
Compare Rates: View packages from DBS, OCBC, UOB, HSBC, Maybank, CIMB, and more on https://www.homejourney.sg/bank-rates.
Submit Multi-Bank Application: One form sends details to 10+ banks via Singpass. No need to visit branches.[4]
Undergo Checks: Banks verify credit (CTOS), income, and TDSR within 3 days.[1][3]
Receive IPA: Digital letter via email; valid 30-60 days. Track status on Homejourney dashboard.

Timeline: Instant pre-qual to 3-7 days for IPA. Pro tip: Apply 2 weeks before OTP deadline for HDB (14 days) or private (12 weeks).[1][3]

Documents Required for Mortgage Pre-Approval

Prepare these for a smooth AIP mortgage application:

NRIC/Passport (front/back)
Latest 3 months' payslips
Latest IRAS Notice of Assessment (NOA)
12 months' CPF contribution history (via CPF portal)
Bank/credit card statements (last 3-6 months)
Employment Pass (foreigners)
Proof of other debts (e.g., car loans)

Self-employed? Expect 30% income haircut; provide audited accounts.[2] Homejourney's Singpass integration auto-fills 80% of docs, reducing errors. See our document checklist in 房贷申请所需文件清单：使用Homejourney申请的好处 ">related guide.

Common Pitfalls and Pro Tips to Boost Approval

Avoid these mistakes: Applying with high credit utilization (>30%) or recent job changes. Insider tip: Pay down cards before applying—boosts credit score instantly.[1]

To increase chances:

Keep TDSR under 40% for better rates.
Time application when SORA is low (current 3M SORA ~2.8%).
Use Homejourney for multi-bank quotes—get 20% better offers on average.
For HDB, confirm MSR eligibility first (household income <S$14,000).[5]

Foreigners: Need PR or high income; face 60% ABSD unless exempt.[2] Always consult Homejourney mortgage brokers for personalized advice.

What Happens After Pre-Approval?

IPA leads to full mortgage application post-OTP. Banks issue Letter of Offer (LO) within 1 week if docs match.[1] Legal fees subsidized by some banks like UOB.[4] Refinancers: Start 3 months pre-lock-in expiry.[6]

Disclaimer: This is general info; rates and rules per MAS/HDB as of 2026. Seek professional advice; Homejourney verifies partners for your safety.

FAQ: Mortgage Pre-Approval Frequently Asked Questions

1. How long is IPA valid?
Typically 30-60 days; reapply if expired. Get it fresh via Homejourney before property hunts.[1]

2. Can I get pre-approval without income documents?
No, but Homejourney's instant calculator gives estimates. Full IPA needs docs.[3]

3. What's the difference between IPA and full approval?
IPA is conditional (no valuation); full LO follows property checks.[1][5]

4. Do all banks offer instant IPA?
Some like UOB do via MyInfo; Homejourney aggregates for DBS, OCBC, etc.[4]

5. How does TDSR affect my pre-approval?
Caps housing debt at 55% of income. E.g., S$8,000 income = max S$4,400/month.[2]

Ready to Get Pre-Approved? Start with Homejourney

Skip bank queues—apply securely on Homejourney's bank rates page today. Compare, calculate, and submit to top lenders in minutes. Building trust through transparency, we ensure safe transactions for confident decisions. Dive deeper in our pillar guide: How to Get Mortgage Pre-Approval in Singapore: Homejourney Guide ">How to Get Mortgage Pre-Approval in Singapore.