Getting mortgage pre-approval in Singapore (also called in-principle approval, IPA or AIP mortgage) is one of the most important steps before you commit to any property. Done right, it protects you from over-stretching, strengthens your bargaining power, and prevents painful last‑minute loan rejections.
This Homejourney guide is written specifically for Singapore buyers and investors, based on real local examples and current regulations. Whether you are viewing 4‑room resale HDB flats in Punggol, new launch condos in Lentor, or a resale freehold apartment in Serangoon, the loan pre-approval process works in a defined, predictable way.
Homejourney’s tools – from the mortgage eligibility calculator to our multi-bank application via Singpass – are designed to make this process safer, faster, and more transparent for you.
Executive Summary: How Mortgage Pre-Approval Works in Singapore
Mortgage pre-approval (IPA/AIP) is a conditional, written indication from a bank of how much they are prepared to lend you, based on your income, debts, and credit profile. It is not a final loan offer, but if your situation and the property meet all conditions, final approval usually follows smoothly.
In Singapore, the pre-approval journey typically looks like this:
- Check your borrowing power using a mortgage eligibility calculator like Homejourney’s Mortgage Rates .
- Prepare your documents (NRIC, CPF contribution history, payslips, IRAS Notices of Assessment, existing loan statements, etc.).
- Submit a loan pre-approval application to one or more banks (e.g. DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Citibank) – ideally through Homejourney’s multi-bank application Bank Rates .
- Bank assesses you under MAS rules (TDSR/MSR, LTV limits, loan tenure, age, property type).
- Receive an In-Principle Approval (IPA/AIP) stating: maximum loan amount, indicative interest package, tenure, and conditions.
- Use your IPA to shortlist properties confidently via Homejourney’s property search Property Search .
- Once you secure an Option to Purchase (OTP) or HDB approval, you proceed to full loan approval and Letter of Offer.
For most salaried buyers with straightforward profiles, IPAs take around 1–5 working days after full document submission, though some banks like UOB advertise “instant” conditional approvals for qualifying cases.[5]
Table of Contents
- What Is Mortgage Pre-Approval (IPA/AIP) in Singapore?
- Why Getting Pre-Approved Matters Before You View or Offer
- Key MAS & HDB Rules That Shape Your IPA
- Step‑By‑Step: How to Get Pre-Approved for a Mortgage in Singapore
- Required Documents & Checklists (Salaried, Self‑Employed, Investors)
- Understanding Interest Rates: Fixed, Floating & SORA
- How Banks Assess Your IPA Application
- Common Pitfalls & How to Avoid IPA Rejection
- What Happens After You Get Your IPA?
- How Homejourney Makes Pre-Approval Safer & Easier
- Frequently Asked Questions (FAQ)
1. What Is Mortgage Pre-Approval (IPA/AIP) in Singapore?
In Singapore, banks call it In-Principle Approval (IPA) or Approval-In-Principle (AIP). Both terms refer to the same thing: a conditional confirmation of how much you can borrow for a property purchase.[2]
An IPA mortgage typically states:
- Maximum loan quantum the bank is prepared to lend.
- Maximum purchase price you can target (based on LTV rules).
- Indicative interest rate package (e.g. 2‑year fixed, 3M SORA‑pegged).
- Indicative monthly instalment and loan tenure.
- Conditions and documents still required (e.g. property valuation, final income checks).
IPA vs Final Loan Approval vs HDB HFE
Key point: For private properties, bank IPA is your main pre-approval reference. For HDB flats, you must have a valid HDB HFE letter and, if you want a bank loan, it still makes sense to secure a bank IPA in parallel.
2. Why Getting Pre-Approved Matters Before You View or Offer
In fast-moving areas like Queenstown, Kallang, or Tampines resale HDB markets, good units can receive multiple offers within days. Serious sellers and agents often ask, “Do you have your IPA?” before they take your interest seriously.
Key Benefits of Mortgage Pre-Approval
- Set a realistic budget: Instead of guessing whether you can afford a S$850,000 4‑room resale in Bishan, your IPA anchors a clear maximum price.
- Negotiate with confidence: When you show your IPA, sellers know you are a ready buyer, which strengthens your position when negotiating the OTP price.[2]
- Avoid last‑minute heartbreak: Without an IPA, you risk paying a 1% option fee on a private condo (e.g. S$15,000 on a S$1.5M unit) only to find your loan is insufficient – that option fee is typically non‑refundable.[1]
- Save time: You can focus only on units within your approved range, using Homejourney’s property search filters to match your IPA budget Property Search .
- Plan your cash/CPF: IPA clarifies your required downpayment, Buyer’s Stamp Duty and potential ABSD, so you know how much CPF and cash you must prepare.[3]
3. Key MAS & HDB Rules That Shape Your IPA
Before any bank issues a loan pre-approval, they must comply with Monetary Authority of Singapore (MAS) regulations. These rules directly determine your maximum loan amount and whether your IPA is approved at all.
3.1 Loan-to-Value (LTV) Limits
The Loan-to-Value (LTV) ratio is the maximum percentage of a property price or valuation that you can borrow. For bank loans, this can go up to 75% for eligible borrowers buying their first residential property, subject to tenure and age rules (based on MAS guidelines).
For example, if your IPA supports a loan of S$750,000, the bank is implicitly assuming a target property value of around S$1,000,000 at 75% LTV; if the property valuation comes in lower, your actual maximum loan may also be reduced.[1]
3.2 Total Debt Servicing Ratio (TDSR)
TDSR caps your total monthly debt repayments (including the new home loan, car loans, student loans, and credit cards) at a percentage of your gross monthly income. MAS currently sets the TDSR threshold at 55% for property loans.
Example: If your combined household income is S$10,000 and you already have a S$500 monthly car loan, your maximum total monthly debt under TDSR is S$5,500. That means your maximum property instalment is around S$5,000, which the bank uses (with assumed stress interest rates) to back-calculate your maximum IPA loan amount.
3.3 Mortgage Servicing Ratio (MSR) for HDB
For HDB flats and ECs purchased from developers, the Mortgage Servicing Ratio (MSR) limits your housing instalment to 30% of your gross monthly income. This is more stringent than TDSR and can significantly reduce the maximum HDB loan you can obtain.[7]
HDB buyers need to factor in both MSR and TDSR when using Homejourney’s eligibility calculator , as they may be constrained by the stricter of the two.
4. Step‑By‑Step: How to Get Pre-Approved for a Mortgage in Singapore
This section walks through the practical, on‑the‑ground process – the same sequence experienced by buyers hunting for homes in places like Sengkang, Bukit Panjang, and Bedok today.
4.1 Step 1 – Estimate Your Budget with a Calculator
Before talking to any bank, use a trusted calculator to avoid unrealistic expectations.
- Go to Homejourney’s bank rates & calculator page .
- Key in your household income, existing loans, age, and desired tenure.
- Review the outputs: maximum loan amount, estimated monthly instalment, and indicative maximum property price.
Insider tip: If you plan to buy in a more expensive area (e.g. a 3‑bedder condo around S$2M in District 9), test different tenures and downpayment amounts. A 30‑year vs 25‑year tenure can make the difference between passing and failing TDSR for your IPA.
4.2 Step 2 – Decide Between HDB Loan vs Bank Loan (for HDB Buyers)
For HDB flats, your first decision is whether to take an HDB loan (if eligible) or a bank loan.
- HDB Loan: Up to 80% LTV (subject to policies), interest pegged to CPF Ordinary Account + 0.1%, more flexible early repayment but usually higher rate than best bank packages.
- Bank Loan: Up to 75% LTV, typically lower headline rates (fixed or SORA-based) but stricter penalties for refinancing or early redemption.
You must apply for an HDB HFE letter via the HDB Flat Portal first if you are buying any HDB flat.[3] Even if you intend to use a bank loan, the HFE is mandatory for the purchase process.
4.3 Step 3 – Prepare Your IPA Document Pack
Most delays and rejections happen because documents are incomplete or inconsistent. Taking one evening to organise everything will significantly speed up your pre-approval.
See the full document checklist in Section 5 below for detailed breakdowns.
4.4 Step 4 – Choose How to Apply: Single Bank vs Multi-Bank via Homejourney
You can either:
- Apply to individual banks one by one (e.g. DBS, OCBC, UOB, HSBC), repeating forms and document uploads; or
- Use Homejourney’s multi-bank application Bank Rates to send one consolidated application to multiple partner banks at once.
Homejourney’s approach is designed for safety and transparency:
- Single data submission via Singpass/MyInfo: Your income, employment, and CPF data auto-fill instantly, reducing data entry errors.
- Multiple banks at once: One application can be routed to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Citibank, and more.
- Centralised status tracking: See which banks have responded, what conditions they impose, and compare offers side-by-side.
- Homejourney Mortgage Brokers: Our brokers help interpret each bank’s IPA, clarify conditions, and highlight any hidden costs.
4.5 Step 5 – Submit Your IPA Application (with Singpass)
For most local buyers, applying with Singpass/MyInfo is the safest and fastest route.
- On Homejourney’s bank rates page Bank Rates , select “Apply via Singpass”.
- Grant permission for MyInfo retrieval (NRIC, address, income, CPF). This is the same secure system used across Singapore government services.
- Upload any additional documents requested (e.g. bonus letters, commission statements, rental agreements).
- Select your target banks (or allow Homejourney to recommend based on your needs).
- Submit your application and track the status within your Homejourney dashboard.
For more detailed walk-throughs on Singpass/MyInfo, you can refer to our related guides: , Using Singpass MyInfo for Faster Loan Applications: Homejourney's Guide , Singpass MyInfo for Faster Loan Applications: Homejourney FAQ , and Singpass MyInfo for Faster Loan Applications: Homejourney's Complete Guide .
4.6 Step 6 – Wait for Assessment & Clarifications
Banks will review your credit bureau record, income stability, and existing loans. For a straightforward salaried applicant, expect an IPA within 1–5 working days after submitting complete documents.[2][5]
Common clarifications that can slow down your IPA:
- Large recent deposits in your bank account without clear source.
- Multiple new credit facilities recently opened.
- Irregular commission or freelance income without tax records.
Homejourney’s brokers can help pre-empt these by advising what explanations or documents to provide upfront.
4.7 Step 7 – Receive and Review Your IPA
Once approved, you will receive a formal In-Principle Approval letter or email from each bank. Check:
- Maximum loan amount and assumed LTV.
- Loan tenure and assumed interest rate.
- Estimated monthly repayment.
- Validity period (often around 30–90 days, bank-dependent).[1][2]
- Specific conditions (e.g. minimum income evidence, redemption penalties, lock-in period).
Homejourney’s comparison interface lets you line up these IPAs side-by-side to see which one truly costs less over the long term, not just which has the lowest headline rate Bank Rates .
5. Required Documents & Checklists
Below is a consolidated checklist to help you prepare for your pre-approved home loan application. Requirements may vary slightly among DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, and other banks, but this list closely reflects current practice.[1][2]
5.1 Salaried Employees (Singapore Citizens/PRs)
- NRIC (front and back).
- Latest 3 months’ computerised payslips.
- Latest 12 months’ CPF Contribution History Statement.
- Latest 2 years’ IRAS Notice of Assessment (NOA).
- Employer’s letter (if needed) confirming employment, salary, and bonuses.
- Credit card and other loan statements (car, renovation, personal, education).
- Latest 3–6 months’ bank statements if salary is paid into a non-CPF-recognised account.
5.2 Self-Employed, Business Owners, Freelancers
- NRIC or passport.
- ACRA business profile (for company owners).
- Latest 2–3 years’ IRAS Notices of Assessment.
- Latest 6–12 months’ personal and business bank statements.
- Audited or management accounts (profit and loss, balance sheet) for the company.
- Existing loan and credit card statements.
Insider tip: For gig workers (e.g. private-hire drivers, property agents, F&B partners), banks often haircut variable income. Showing at least 2–3 years of consistent earnings on NOA greatly improves IPA approval chances.
5.3 Foreigners & Non-Residents
- Valid passport and current Singapore visa or work pass (EP, S Pass, etc.).[1][2]
- Latest employment contract or appointment letter.
- Last 3–6 months’ payslips or salary credit bank statements.[1]
- Latest 2 years’ tax statements (IRAS or overseas equivalent).[1][2]
- Overseas credit report if you have existing borrowings abroad.[1]
- Bank statements evidencing savings and deposit source.[1]
Some banks may require additional legalisation (apostille, notarisation) for overseas documents.[2] Homejourney’s brokers can flag these requirements upfront so you do not waste weeks back-and-forth with your home country bank or employer.
5.4 Property-Related Documents (Later, for Final Approval)
For IPA, property documents are usually not needed yet, but once you secure an OTP or HDB approval, banks will request:
- Option to Purchase (OTP) for private properties.[1][3]
- Sale & Purchase Agreement (for new launches).[1]
- HDB flat details (for HDB purchases; via HDB portal).[3]
- Valuation report or request form (bank will arrange valuation after OTP).[1][3]
6. Understanding Interest Rates: Fixed, Floating & SORA
Your IPA will reflect an indicative interest package. Understanding this now helps you avoid shocks when rates fluctuate during your house-hunting period.
6.1 Fixed vs Floating
- Fixed-rate packages: Interest is fixed (e.g. for 2–3 years) and then usually reverts to a floating rate. Good for buyers who value stability in the first few years.
- Floating-rate packages: Pegged to benchmarks like 3M SORA, with a bank spread. Monthly instalments can move up or down depending on market rates.
6.2 What Is SORA?
SORA (Singapore Overnight Rate Average) is the main benchmark interest rate used by Singapore banks for floating-rate mortgages, replacing older SIBOR packages. It is published by MAS based on overnight interbank lending rates.
Homejourney tracks live 3M and 6M SORA so you can see how rates are trending before locking in your loan Bank Rates .
The chart below shows recent interest rate trends in Singapore:
When reviewing your IPA, Homejourney helps you compare fixed vs SORA-based packages across DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and others in one place Bank Rates .
7. How Banks Assess Your IPA Application
Every bank has its own internal model, but key factors are similar across lenders.
7.1 Key Assessment Criteria
- Income level & stability: Length of employment, variability of commissions, and industry risk.
- Existing debts: Car loans, education loans, credit card balances, and other property loans (for multiple property owners).
- Credit history: Payment behaviour, outstanding balances, number of recent credit applications.
- Age & tenure: Loan must generally be repaid by age 65–75 (bank-dependent), so older borrowers may face shorter tenures.
- Property type & use: Residential vs commercial, owner-occupied vs investment, HDB vs private.
7.2 Example: Typical IPA Outcome for a Young Couple
Imagine a Singaporean couple in their early 30s, both working near Raffles Place, eyeing a S$900,000 4‑room resale HDB in Queenstown:
- Combined fixed income: S$10,000/month.
- No other loans or credit card debts.
- Looking at a 25‑year tenure.
Using Homejourney’s calculator , they might see a maximum loan of ~S$750,000 and an estimated monthly instalment of ~S$3,500–3,800 depending on rate assumptions, comfortably within TDSR.
Most banks would likely issue an IPA around this loan quantum, subject to property valuation, MSR (since it’s an HDB), and any changes in income or debts.
7.3 IPA Validity & Updates
IPAs are typically valid for around 30–90 days.[1][2] It is common practice for banks to refresh IPAs if your circumstances remain unchanged, but they may request updated payslips or CPF statements.
Practical tip: If you know you will only seriously start viewing units 2–3 months later (e.g. after your bonus season), time your IPA accordingly so it does not expire mid-negotiation.
8. Common Pitfalls & How to Avoid IPA Rejection
Many of the painful stories we hear from Singapore buyers – losing OTP fees, having to downgrade last-minute, or scrambling to borrow from family – come from skipping or mishandling the pre-approval stage.
8.1 Top Mistakes Before and During IPA
- Placing OTP before securing IPA: Particularly risky for private condos where 1% option fees can be in the tens of thousands.[1]
- Under‑declaring debts: Banks cross-check with the credit bureau. If they find undisclosed loans, it damages trust and may reduce your loan quantum.
- Taking new loans after IPA: A new car loan or personal loan can push you over TDSR, invalidating your IPA when the bank re-checks before final approval.
- Over‑reliance on variable income: Commissions and overtime can be heavily discounted, so plan based on your base income.
- Not planning for rate hikes: Approvals use stress-test rates above current market rates, but you should still budget for higher instalments than today’s.
For more on common errors and how to prevent them, see our related pieces: Avoid Mortgage Mistakes: Homejourney Application Benefits , Common Mortgage Application Mistakes to Avoid: Homejourney Bank Rate Guide , Avoid Mortgage Mistakes: Boost Approval Odds with Homejourney , and Avoid Mortgage Mistakes: Homejourney FAQ Guide Singapore .
8.2 Ways to Improve Your IPA Success Odds
- Clean up your credit: Pay down existing card balances, avoid late payments for at least 6–12 months before applying.
- Stabilise your income: If you plan to switch jobs, consider doing so after obtaining your IPA and completing the purchase; banks may be wary of those on probation.
- Lower your target price: If your TDSR is tight, dropping from a S$1.2M to S$1.05M unit can be the difference between approval and rejection.
- Add a co-borrower: A spouse or close family member with stable income can boost the combined TDSR capacity.
- Use Singpass/MyInfo via Homejourney: Ensures banks see consistent, verified income and CPF data, which they trust more.
9. What Happens After You Get Your IPA?
Once your IPA is in hand, you can start shortlisting properties that fit both your lifestyle and your approved budget.
9.1 Shortlist Properties Within Your IPA Range
Use your IPA’s maximum property price as an upper limit and aim for some buffer (e.g. shop 5–10% below the maximum to leave room for valuation differences).
On Homejourney’s property search Property Search , filter by:
- Price range based on your IPA.
- Location (e.g. near your office in Raffles Place, your parents in Toa Payoh, or your child’s school in Bukit Timah).
- Property type (HDB, condo, landed) and size.
When you view units – whether a high-floor 4‑room in Punggol Walk or a city-fringe condo at Dakota – bring your IPA details so agents understand your financing is in place.
9.2 From IPA to OTP (Private Property)
For private property purchases, the sequence usually follows:[1][3]
- You negotiate the price with the seller.
- Once agreed, you pay the option fee (typically 1% of purchase price) and receive the Option to Purchase (OTP), valid 14–21 days.[1][3]
- During the option period, your lawyer runs legal checks and the bank conducts a valuation.[1]
- If valuation is equal to or higher than the agreed price, your loan is based on the price. If lower, your loan is based on valuation, and you must top up more cash/CPF.[1]
- You exercise the OTP by paying the remaining deposit (usually up to 5% in total), then the bank issues a Letter of Offer.[1][3]
9.3 From IPA to HDB Completion
For HDB resale flats, the HDB Resale Portal guides both buyers and sellers step-by-step. You and the seller must have valid HFE letters, and your bank loan details will be integrated at the appropriate stage.[3]
HDB completion typically takes 12–16 weeks from acceptance, during which your bank and lawyers coordinate loan disbursement and transfer of title.[3]
9.4 After Key Collection: Next Financial Steps
Once you collect your keys – whether it’s a new BTO in Bidadari or a resale condo in Pasir Ris – your financial planning does not stop:
- Ensure GIRO is set up for monthly mortgage instalments.
- Budget for renovation, moving costs, and recurring expenses (MCST fees, town council S&CC, property tax).
