Mortgage Pre-Approval FAQ: Singapore Home Loans | Homejourney

Mortgage pre-approval, also known as In-Principle Approval (IPA) or loan pre-approval, is a preliminary assessment from banks confirming how much you can borrow based on your income and credit. This essential step helps Singapore buyers shop confidently within budget while meeting Total Debt Servicing Ratio (TDSR) rules from the Monetary Authority of Singapore (MAS). At Homejourney, we prioritize your safety by simplifying this process through our multi-bank application system.

This cluster article answers How to Get Pre-Approved for a Mortgage: Frequently Asked Questions, building on our pillar guide How to Get Pre-Approved for a Mortgage in Singapore: Homejourney Guide. Discover actionable steps, required documents, and insider tips tailored for first-time HDB buyers, upgraders, and investors.

What is Mortgage Pre-Approval (IPA) in Singapore?

Mortgage pre-approval or in-principle approval (IPA) provides a non-binding letter from banks like DBS, OCBC, or UOB stating your borrowing capacity, valid for 30 days[1][4]. It factors in MAS TDSR limits (60% of gross income for all debts) and Mortgage Servicing Ratio (MSR) for HDB (30%).

For example, a household earning S$10,000 monthly might qualify for S$1.5 million on a private property, assuming no other debts. Use Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator to estimate instantly with Singpass integration for accurate CPF and income data.

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

Follow these actionable steps for AIP mortgage or pre-approved home loan in Singapore:

Check Eligibility: Use Homejourney's tool to input income, age, and debts. Confirm HDB eligibility via HDB Flat Eligibility (HFE) letter if buying resale flats[3].
Gather Documents: Prepare payslips, IRAS Notice of Assessment (NOA), and bank statements (see checklist below).
Apply via Homejourney: Submit one application at https://www.homejourney.sg/bank-rates. It auto-fills via Singpass and sends to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank.
Receive IPAs: Get conditional approvals in 1-5 days[1][4]. Compare side-by-side on Homejourney.
Lock Best Offer: Track status and select the optimal rate. IPAs boost your offers to sellers[1].

Avoid pitfalls like applying solo to banks—Homejourney's multi-bank system saves time and uncovers better rates, as detailed in Who Should Apply to Multiple Banks at Once? Homejourney Guide [5].

Required Documents for Loan Pre-Approval

Prepare this checklist for smooth mortgage pre-approval:

NRIC/Passport and valid work pass (foreigners)[1][2]
Latest 3-6 months' payslips or salary credits
IRAS NOA for past 2 years
Employment contract or letter
Bank statements (3-6 months, Singapore and overseas if applicable)
CPF statements via Singpass
Credit report (if self-employed, add business docs)[2]

Pro tip: Scan documents digitally before applying. Foreigners need apostilled proofs[2]. Homejourney's Singpass auto-fill skips manual uploads for faster processing.

How Long Does Pre-Approval Take?

IPAs arrive in 1-3 days for salaried Singaporeans/PRs via instant systems like UOB's MyInfo[4]. Foreigners or complex cases take 3-5 days[1]. Full formal approval post-OTP needs 1-2 weeks after valuation.

Current 2026 SORA trends affect rates—SORA is the Singapore Overnight Rate Average, benchmark for most floating loans. The chart below shows recent interest rate trends in Singapore:

As seen, 3M SORA hovers around 3.0-3.5%, influencing your monthly payments. Time applications when rates dip for better terms.

Pro Tips to Boost Approval Chances

Lower Debts: Pay off cards before applying to improve TDSR.
Multiple Banks: Apply via Homejourney to 10+ partners without credit impact—see Apply to Multiple Banks at Once: Homejourney's Complete Singapore Guide.
Insider Tip: For HDB upgraders, grant your existing flat resale HFE early via HDB portal[3].
Refinancing: If rates drop, compare via https://www.homejourney.sg/bank-rates.

Disclaimer: This is general guidance; consult Homejourney mortgage brokers for personalized advice. Rates and rules per MAS/HDB as of 2026.

What Happens After Pre-Approval?

With IPA in hand, search properties on https://www.homejourney.sg/search within budget. Secure OTP (1% fee), get valuation, then formal Letter of Offer[1]. Completion takes 8-12 weeks. Track everything securely on Homejourney for a trusted process.

Frequently Asked Questions (FAQ)

1. Is mortgage pre-approval free?
Yes, IPAs are free and non-binding. Banks charge only for formal valuations later (~S$500-1,000).

2. Can foreigners get pre-approved?
Yes, with work pass, payslips, and overseas credit checks. LTV capped at 60-75%[1][2].

3. Does pre-approval affect credit score?
Soft checks don't; Homejourney uses inquiry-free multi-bank screening.

4. HDB vs Private Property Pre-Approval?
HDB needs MSR (30%) + HFE letter; private uses TDSR (60%). Use our calculator for both.

5. How to compare bank offers?
Side-by-side on Homejourney after one application—rates, fees, lock-ins from all partners.

Ready for mortgage pre-approval? Start safely with Homejourney at https://www.homejourney.sg/bank-rates. Compare rates, calculate eligibility, and apply via Singpass today. For full details, read our pillar guide How to Get Pre-Approved for a Mortgage in Singapore.