Self-Employed Mortgage Eligibility Complete: Bank Rate Comparison Guide
Self-employed individuals in Singapore can secure mortgages from major banks like DBS, OCBC, and UOB, but face a 30% income haircut for TDSR calculations and need 1-2 years of NOA from IRAS. This guide breaks down eligibility, compares current bank rates, and shows how Homejourney simplifies the process with instant calculators and multi-bank applications.
Homejourney prioritizes your safety by verifying data through Singpass and providing transparent comparisons, helping freelancers and gig workers buy confidently. As a cluster topic supporting our pillar on Singapore Mortgage Eligibility Complete Guide, it delivers tactical steps for variable income loans.
Self-Employed Mortgage Eligibility Criteria in Singapore
Self-employed mortgage eligibility hinges on proving stable income via official documents, as banks apply stricter rules than for salaried workers. Key requirements include being at least 21 years old, with loans typically not extending past age 65, and meeting Loan-to-Value (LTV) limits of up to 75% for first private properties.[1][3]
For self-employed mortgage Singapore, banks recognize only 70% of your declared income due to variability—called a 30% haircut. If your average monthly income from NOAs is S$10,000, banks use S$7,000 for assessments.[1][2][4]
You must pass Total Debt Servicing Ratio (TDSR) at 55% of gross income (60% stress-tested at 4% rate) and Mortgage Servicing Ratio (MSR) at 30% for HDB flats. Credit Bureau Singapore (CBS) score matters; avoid defaults to prevent borrowing limits.[4]
NOA Requirements for Freelancers and Gig Workers
NOA requirements demand the latest 1-2 years' Notice of Assessment from IRAS, showing consistent earnings. Gig economy workers like Grab drivers or content creators must average income from tax returns, bank statements, and invoices—no CPF contributions assumed unless via Medisave.[4]
Banks like HSBC and Standard Chartered may require 3 months' bank statements alongside NOAs. Insider tip: File taxes accurately early; discrepancies between IRAS and bank declarations trigger rejections.[1][4]
TDSR and MSR Calculations for Variable Income Loans
Total Debt Servicing Ratio (TDSR) caps all debts (including mortgages) at 55% of income post-30% haircut for self-employed. For HDB, MSR limits housing loans to 30%.[5][6]
| Monthly Gross Income (Self-Employed) | Post-Haircut Income | Max Monthly Debt (TDSR 55%) | Est. Max Mortgage (25yrs, 3.5% rate) |
|---|---|---|---|
| S$8,000 | S$5,600 | S$3,080 | S$700,000 |
| S$12,000 | S$8,400 | S$4,620 | S$1,050,000 |
| S$15,000 | S$10,500 | S$5,775 | S$1,300,000 |
Example: A freelancer earning S$12,000/month (post-haircut S$8,400) with S$1,000 car loan can afford S$3,620 housing repayment, supporting a S$1M condo loan. Use Homejourney's eligibility calculator for personalized math.[6]
Current Bank Rates Comparison for Self-Employed
As of 2026, self-employed applicants get similar rates to employed but need stronger docs. SORA-based loans dominate; fixed packages offer 1-2% p.a. initially. Homejourney's bank rates page compares real-time offers from partners.
- DBS: 3M SORA + 0.6% (~3.2% effective), flexible NOA review.
- OCBC: SORA + 0.5% (~3.1%), favors 2-year track record.
- UOB: Fixed 2% for 2yrs, then SORA + 0.7%.
- HSBC/Standard Chartered: Competitive for high earners, SORA + 0.4-0.8%.
- Maybank/CIMB/RHB: SORA + 0.7%, good for gig workers with invoices.[1]
The chart below shows recent interest rate trends in Singapore:
Rates hover at 3-3.5% amid SORA stability; lock fixed now via Homejourney for protection. Compare all at Homejourney bank-rates.[1]
Actionable Steps to Boost Approval for Gig Economy Mortgages
- Prepare Docs Early: Gather 2 years' NOAs, 6 months' statements, invoices. Use IRAS e-Service for NOAs.
- Optimize Finances: Pay down debts; aim CBS score above 1,000. Delay application if new business (<1yr).
- Use Homejourney Tools: Check eligibility at mortgage calculator; apply via Singpass for auto-fill from partners like DBS-UOB.
- Submit Multi-Bank: One Homejourney application gets quotes from 10+ banks, saving time.
- Time Right: Apply pre-tax filing for fresh NOAs; explore boosting approval odds.
Disclaimer: Rates fluctuate; this is not financial advice. Consult Homejourney brokers for tailored guidance. Find properties in budget via Homejourney property search.
FAQ: Self-Employed Home Loans in Singapore
What are NOA requirements for self-employed mortgage Singapore?
Latest 1-2 years' IRAS NOAs proving average income; banks haircut 30% for TDSR. Gig workers add bank proofs.[4]
How does freelancer home loan differ from employed?
Variable income loan gets 30% cut, needs more docs like invoices vs payslips. Same TDSR/MSR apply.[1][2]
Which bank best for self-employed in 2026?
OCBC/DBS for flexibility; compare via Homejourney. SORA +0.5-0.7% typical.
Can I get variable income loan with 1-year business?
Some banks yes with strong statements; most prefer 2 years. Check Homejourney calculator first.
How to check TDSR impact?
Use Homejourney's tool at bank-rates#calculator; factors haircut automatically.
Ready to compare rates securely? Visit Homejourney bank-rates for Singpass-powered applications and connect with our mortgage brokers. Build trust with verified data—start your self-employed mortgage eligibility journey today. Explore our pillar Singapore Mortgage Eligibility Guide for full coverage.
