Self-Employed Mortgage Eligibility Complete: Frequently Asked Questions
Self-employed individuals in Singapore can qualify for mortgages but face stricter rules like a 30% income haircut for TDSR calculations and 2-year income proof via NOA from IRAS.[1][2]
At Homejourney, we prioritize your safety and trust by verifying eligibility data transparently. Use our bank-rates page to check your borrowing power instantly against DBS, OCBC, UOB, and more.Self-Employed Mortgage Singapore: Homejourney Eligibility Guide
Self-Employed Mortgage Singapore: Key Eligibility Basics
Unlike salaried workers, self-employed applicants including freelancers and gig economy workers must prove income stability over at least 2 years.[1][3] Banks assess variable income conservatively, applying a 30% haircut—meaning if your declared monthly income is S$10,000, only S$7,000 counts for TDSR (capped at 55% of income).[2][4]
For HDB flats or ECs, MSR limits repayments to 30% of gross income (including your CPF contributions, excluding employer's).[6] Age limits typically range from 21 to 65, with loan tenure not exceeding age 65 or 75 for private properties.[2]
A strong credit score from Credit Bureau Singapore is essential; past defaults hurt approvals.[1] Homejourney's eligibility calculator on our mortgage calculator factors these in for precise estimates.
NOA Requirements for Freelancer Home Loans
The Notice of Assessment (NOA) from IRAS is mandatory, showing taxable income for the past 2 years to verify consistency.[1][3] Banks cross-check NOA against CPF statements and bank statements (last 6-12 months) for cash flow proof.[1]
Sole proprietors or partners need business registration, profit/loss statements, and audited accounts if turnover exceeds S$5 million.[1] Gig workers like Grab drivers or content creators submit invoices alongside NOA to demonstrate earnings.[3]
Tip: File taxes accurately and early—discrepancies between NOA and bank deposits lead to rejections. Homejourney guides you through Singpass-linked applications for auto-filled NOA data, speeding approvals.
TDSR and MSR Examples for Variable Income
Scenario 1: Freelancer earning S$8,000/month average (2-year NOA). After 30% haircut: S$5,600 for TDSR. With no other debts, max housing repayment is S$3,080 (55%). At 3% interest over 25 years, this supports ~S$650,000 loan.[2][6]
| Gross Income (S$/mth) | After Haircut (70%) | Max TDSR Repayment (55%) | Est. Loan (25yrs, 3%) |
|---|---|---|---|
| S$5,000 | S$3,500 | S$1,925 | ~S$410,000 |
| S$10,000 | S$7,000 | S$3,850 | ~S$820,000 |
| S$15,000 | S$10,500 | S$5,775 | ~S$1.23M |
Existing car loan of S$1,000/month reduces capacity further. Use Homejourney's tool to simulate.TDSR Explained: Mortgage Eligibility & Homejourney Benefits
Gig Economy Mortgage Challenges and Solutions
Gig workers face extra scrutiny due to income variability; banks average 1-2 years' earnings but prefer upward trends.[1][2] Business must be 2+ years old for best odds.[1]
Solutions: Build 2 years of consistent CPF contributions and minimize debts. DBS, OCBC, UOB often approve with strong NOA profiles via Homejourney's multi-bank submissions—one form gets offers from all.[2]
How to Boost Your Variable Income Loan Approval
- Document Everything: Gather 2-year NOAs, 6-month bank statements, CPF history, business docs.[1]
- Reduce Debts: Pay down cards/loans to lower TDSR usage.[6]
- Show Growth: Highlight year-on-year income increases in statements.[3]
- Joint Applications: Partner with stable-income spouse boosts capacity.
- Use Homejourney: Compare rates at https://www.homejourney.sg/bank-rates and apply via Singpass for 50% faster processing.
Insider tip: Time applications post-tax season (April) when fresh NOAs are ready—banks process quicker.[1] For HDB upgraders, check MSR via our calculator before viewing flats on property search.
Homejourney: Your Trusted Partner for Self-Employed Loans
Homejourney verifies bank partner rates (DBS, HSBC, Standard Chartered, Maybank, CIMB, etc.) daily for transparency. Submit once, get personalized offers—building trust through user feedback-driven tools.
Track SORA impacts with our real-time features. Post-purchase, maintain value with Aircon Services ">aircon services via Homejourney.
FAQ: Self-Employed Mortgage Eligibility Complete
1. What NOA is needed for self-employed mortgage Singapore?
Latest 2 years' IRAS NOAs, matching CPF and bank records.[1][3]
2. Can freelancers get HDB loans with variable income?
Yes, but MSR at 30% applies to 70% of averaged income; HDB cap is S$14,000 household.[6][7]
3. How does TDSR affect gig economy mortgage eligibility?
30% income haircut; e.g., S$6,000 becomes S$4,200 max for 55% TDSR.[2][4]
4. Which banks are best for self-employed home loans?
DBS, OCBC, UOB via Homejourney's comparison—flexible with strong docs.[1]
5. How to check self-employed borrowing power instantly?
Use Homejourney's free calculator at https://www.homejourney.sg/bank-rates#calculator.
Disclaimer: This is general info; consult Homejourney brokers or banks for advice. Rules per MAS 2026.[2]
Ready to verify your eligibility? Start at Homejourney bank-rates and link back to our pillar: Self-Employed Mortgage Singapore: Homejourney Eligibility Guide ">Self-Employed Mortgage Singapore Guide.
