Step by Step First Home Loan Application Singapore | Homejourney Guide
This is the definitive pillar guide to the first home loan application in Singapore, crafted by Homejourney to empower first-time buyers with transparent, verified steps for a safe journey to homeownership. Whether you're eyeing an HDB flat or private property, our comprehensive walkthrough covers every stage of the step by step mortgage process, including eligibility checks, document prep, bank comparisons, and approval timelines, all grounded in current 2026 regulations from HDB, MAS, and major banks[1][3][4].
Homejourney prioritizes your safety and trust by verifying all information, integrating Singpass for seamless applications, and offering multi-bank submissions to compare rates from DBS, OCBC, UOB, and more—all in one secure platform. Start with our bank rates page to calculate eligibility instantly and apply safely today.
Table of Contents
- Executive Summary
- Understanding Home Loans in Singapore
- Eligibility Requirements for First-Time Buyers
- Step 1: Obtain Your HFE Letter (HDB Buyers)
- Step 2: Assess Your Finances and Use Homejourney Calculator
- Step 3: Compare Bank Rates and Packages
- Step 4: Prepare Documents – Complete Checklist
- Step 5: Apply for In-Principle Approval (IPA)
- Step 6: Submit Formal Loan Application
- Step 7: Property Valuation and Final Approval
- Step 8: Legal Completion and Loan Disbursement
- Pro Tips: Avoid Common Pitfalls and Boost Approval
- HDB Loan vs Bank Loan: Which is Right for You?
- Understanding Interest Rates and SORA
- Frequently Asked Questions (FAQs)
- Next Steps with Homejourney
Executive Summary
Securing your first home loan application in Singapore typically takes 2-4 weeks for IPA and 4-8 weeks for full approval, depending on your readiness and bank efficiency[1][4]. Key milestones include HFE letter (for HDB), IPA from banks like DBS or UOB, valuation, and legal completion. Homejourney simplifies this with one-click Singpass applications sent to 10+ banks, real-time rate comparisons, and eligibility calculators—ensuring you get the best deals safely.
In 2026, with SORA rates stabilizing around 2.5-3.5% for most packages, first-timers can borrow up to 75-90% LTV on HDB flats under 30 years old, subject to TDSR (60% debt ratio) and MSR (30% for HDB)[1]. Use our guide to navigate confidently, avoiding pitfalls that cost thousands.
Understanding Home Loans in Singapore
A home loan, or mortgage, is financing from HDB or banks to cover 75-90% of your property purchase price, repaid monthly with interest. For new buyer loan process, HDB loans offer stability at 2.6% pegged rates (90% LTV for first-timers), while bank loans provide flexibility with SORA-based packages (often lower initial rates but variable)[1].
Total process timeline: 1-3 months from application to disbursement. Homejourney's platform lets you skip branch visits—apply once via https://www.homejourney.sg/bank-rates, receive offers from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank side-by-side.
Key Regulations: LTV, MSR, TDSR
- LTV (Loan-to-Value): 90% for first HDB (age <30yrs), 75% private/resale[1].
- MSR (Monthly Servicing Ratio): <30% of gross income for HDB loans[4].
- TDSR (Total Debt Servicing Ratio): <60% across all debts for banks[1].
These MAS rules protect buyers; calculate yours on Homejourney's mortgage calculator.
Eligibility Requirements for First-Time Buyers
You qualify if aged 21-65 (loan till 65), Singapore Citizen/PR for HDB, stable income >$1,500/month, credit score >BB, no bankruptcy <5-7 years ago[1]. Self-employed need 2 years NOA; foreigners face stricter KYC.
| Criteria | HDB Loan | Bank Loan |
|---|---|---|
| Max LTV | 90% (first-timer) | 75% |
| Min Age | 21 (HDB rules apply) | 21 |
| Max Tenure | 30 years | 35 years |
| Debt Ratio | MSR 30% | TDSR 60% |
Insider tip: Recent CPF top-ups boost OA for downpayment (up to 10% CPF for HDB)[1]. Check property search for budgets matching your eligibility.
Step 1: Obtain Your HFE Letter (HDB Buyers)
For BTO/resale HDB, start with HDB Flat Eligibility (HFE) letter via Singpass on HDB Portal[4]. Step 1: Preliminary check (household/income details, debts). Step 2: Apply within 30 days, upload docs; get letter in 21 days.
- Login Singpass, use Myinfo for auto-fill.
- Declare private property interests, loan intent.
- Review preliminary assessment (grants up to $80k EHG).
- Submit full app; track status online[4].
HFE confirms budget before balloting. See related: 首次购房者：HDB贷款vs银行贷款 | Homejourney指南 .
Step 2: Assess Your Finances and Use Homejourney Calculator
Input income, debts into Homejourney's eligibility calculator for borrowing power estimate. Example: $5k/month income, no debts = ~$450k loan (TDSR-compliant).
Pro tip: Factor grants (EHG $80k), CPF OA. Avoid overborrowing—aim 20% buffer for rates rising to 3.5%[1].
Step 3: Compare Bank Rates and Packages
Shortlist banks via https://www.homejourney.sg/bank-rates. Compare fixed (2-3% lock-in 2-3yrs), SORA (+0.5-1% margin). Homejourney sends one app to all partners.
Understanding SORA Rates
SORA (Singapore Overnight Rate Average) is MAS benchmark, replacing SOR/SIBOR. Most banks peg to 3M/6M SORA + margin (e.g., 3% total). Fixed offers short-term certainty.
The chart below shows recent interest rate trends in Singapore:
As seen, 6M SORA hovered ~3% in late 2025; time fixed locks if expecting hikes. Track live on Homejourney.
Step 4: Prepare Documents – Complete Checklist
Gather 1-2 weeks early. Homejourney auto-fills via Singpass[3][7].
| Document | Details | Source |
|---|---|---|
| NRIC/Passport | All applicants | IC/ICA |
| Payslips/IR8A | Latest 3-6 months | Employer |
| NOA | 2 years (self-employed) | IRAS |
| CPF Statements | Latest + withdrawal | CPF Portal |
| Option to Purchase | Signed | Seller |
Digital scans suffice; banks like OCBC accept Myinfo[7].
Step 5: Apply for In-Principle Approval (IPA)
Submit via Homejourney: 2-3 days turnaround[1]. IPA locks loan amount (e.g., $500k at 2.8%) for 1-3 months. Valid for property hunt on Homejourney search.
Tip: Get IPAs from 2-3 banks; no cost, boosts negotiating power.
Step 6: Submit Formal Loan Application
Post-option fee, resubmit docs + property details. Homejourney's multi-bank system tracks all[1]. Expect queries; respond fast to avoid delays.
Step 7: Property Valuation and Final Approval
Bank appoints valuer ($50-700 fee)[1]. If valuation < purchase price, top-up cash. Approval letter follows (1-2 weeks).
Step 8: Legal Completion and Loan Disbursement
Lawyer handles; bank disburses on key collection. First payment 1 month later. Activate GIRO.
Pro Tips: Avoid Common Pitfalls and Boost Approval
- Check credit (CTOS) pre-apply; fix errors[1].
- Minimize debts pre-IPA (pay cards).
- Time app post-CPF salary crediting.
- Use Homejourney brokers for personalized guidance.
- Avoid: Multiple apps (hurts score), ignoring TDSR[1].
Related: 首次购房者常犯的房贷错误：Homejourney安全避坑指南 , How to Improve Your Loan Approval Chances | Homejourney .
HDB Loan vs Bank Loan: Which is Right for You?
HDB: Simpler, higher LTV, but higher rates long-term. Banks: Competitive SORA, better for private. Compare on Homejourney. See BTO组屋买家贷款完整指南 2026 | Homejourney .
Interest Rates Deep Dive
2026 averages: HDB 2.6%, Bank SORA+0.7% (~3.2%). Lock fixed if >3% projected. Use bank-rates for live quotes.
