Introduction
Purchasing a property in Singapore is one of the most significant financial commitments you’ll ever make. Whether you’re a first-time buyer applying for a BTO flat, a private condominium upgrader, or someone looking to invest in real estate, knowing how much home loan you can get is a critical first step in the process.
With government regulations such as the Total Debt Servicing Ratio (TDSR), Mortgage Servicing Ratio (MSR), Loan-to-Value (LTV) limits, and the influence of your income, age, and outstanding debts, calculating your borrowing capacity requires more than just a rough estimate. In this detailed guide, we’ll walk you through all the major components that affect your home loan eligibility in Singapore in 2025 and how to plan your property purchase accordingly.
Why Home Loan Eligibility Matters
Understanding how much home loan you qualify for helps you:
- Set realistic expectations when house hunting
- Avoid overcommitting to a property outside your financial means
- Prevent rejection during your mortgage application
- Make informed decisions on whether to opt for a HDB loan or a bank loan
- Strategically plan your downpayment, monthly instalments, and refinancing options
Factors That Determine Your Home Loan Amount
There are five main factors that influence how much you can borrow in Singapore:
- Your Gross Monthly Income
- Your Existing Debt Obligations
- Your Age and Loan Tenure
- Property Type and LTV Limits
- Regulatory Frameworks (TDSR and MSR)
Let’s explore each in detail.
1. Your Gross Monthly Income
The foundation of your home loan eligibility is your monthly gross income. This includes:
- Salary (basic + variable components like bonuses or commissions, though these may be weighted less)
- Rental income (if properly documented)
- Business income (for self-employed individuals, based on IRAS Notice of Assessment)
- Other fixed allowances
Lenders will take your monthly income as a starting point to determine how much loan you can service while still maintaining a healthy debt profile.
2. Your Existing Debt Obligations
If you already have other loans, such as:
- Car loans
- Personal loans
- Education loans
- Credit card debts
- Hire purchase obligations
These will reduce the amount of income available for home loan servicing. The Total Debt Servicing Ratio (TDSR) limits your total monthly debt repayment (including your new home loan) to no more than 55% of your gross monthly income.
For example, if your gross monthly income is $6,000, your total monthly debt commitments, including your new mortgage, must not exceed $3,300.
3. Your Age and Loan Tenure
The loan tenure (how long you plan to take to repay the loan) directly impacts your monthly repayment and, hence, how much loan you can qualify for.
The maximum loan tenure for residential properties is:
- 30 years for HDB flats
- 35 years for private properties
However, note that the loan must not extend beyond age 65 to qualify for maximum LTV ratios.
If you stretch your tenure beyond the age of 65, your loan-to-value (LTV) limit may be reduced, and your monthly repayment must meet stricter TDSR limits.
For instance:
- A 30-year-old can take a 30-year loan easily.
- A 50-year-old may only qualify for a 15-year loan to keep the loan tenure within the age 65 cap.
4. Property Type and Loan-to-Value (LTV) Limits
The LTV limit is the maximum percentage of the property’s value or purchase price that a bank or HDB will finance.
For HDB Loan (Direct from HDB):
- Up to 80% of the purchase price or valuation, whichever is lower
- Minimum 10% downpayment, payable with CPF OA (no cash needed)
For Bank Loans:
- Up to 75% of the purchase price or valuation
- Minimum 25% downpayment, of which 5% must be in cash and 20% can come from CPF OA
However, the LTV limit decreases if:
- You already have an existing housing loan
- The loan tenure extends past the borrower’s age 65
- The property has a remaining lease of less than 60 years
5. TDSR and MSR Frameworks
Total Debt Servicing Ratio (TDSR):
- Applies to all property loans (HDB and private)
- Capped at 55% of gross monthly income
- Includes all debt obligations
Mortgage Servicing Ratio (MSR):
- Applies only to HDB flats and Executive Condominiums (ECs) purchased directly from a developer
- Capped at 30% of gross monthly income
- Only includes the home loan repayment, not other debts
Let’s break it down further with examples.
Example 1: First-Time Buyer of a BTO Flat Using HDB Loan
- Age: 30
- Gross monthly income: $5,000
- No other loans
- Buying a BTO flat for $400,000
Step 1: Check MSR (30% of $5,000 = $1,500)
This means your monthly repayment for the HDB loan cannot exceed $1,500.
Assuming an interest rate of 2.6% and tenure of 25 years, a monthly repayment of $1,500 supports a loan of approximately $310,000.
Step 2: Downpayment = 10% = $40,000 (paid using CPF)
So the total loan needed is $360,000, but the MSR limits you to $310,000. That means you must either:
- Increase downpayment by $50,000 (from CPF or cash), or
- Choose a cheaper flat or longer tenure (if available)
Example 2: Buying a Private Condominium with Bank Loan
- Age: 35
- Combined gross monthly income with spouse: $12,000
- Existing car loan: $600/month
- Looking at a condo worth $1.2 million
Step 1: TDSR = 55% of $12,000 = $6,600
Subtract $600 (car loan) = $6,000 left for home loan repayment
At an interest rate of 4% and 30-year tenure, $6,000/month supports a loan of roughly $1 million.
Step 2: LTV limit = 75% of $1.2 million = $900,000
But based on TDSR, you can borrow up to $1 million. So in this case, the LTV becomes the limiting factor. You are only allowed to borrow up to $900,000.
Downpayment required = $300,000
- $60,000 in cash (5%)
- $240,000 in CPF or cash
CPF Usage Limits for Housing Loans
When using CPF Ordinary Account (OA) funds for housing, there are some limits to note:
- You can use CPF for downpayment, legal fees, stamp duty, and monthly instalments.
- For HDB flats: Usage is subject to the Valuation Limit (VL) and Withdrawal Limit (WL).
- VL = purchase price or valuation (whichever is lower)
- WL = 120% of VL (after which no more CPF can be used for monthly instalments unless you meet Minimum Sum requirements)
Tools to Estimate Your Loan Eligibility
Singapore has various calculators and tools to help you estimate your home loan:
- HDB Loan Eligibility (HLE) Letter
Required to apply for an HDB loan. You can apply online at the HDB website. - Approval in Principle (AIP) from Banks
Pre-approves your maximum loan amount based on income documents. Valid for 30–90 days depending on the bank. - Mortgage Affordability Calculators
These help simulate your monthly repayment based on property value, interest rate, and tenure.
Tips to Maximise Your Home Loan Eligibility
- Reduce Existing Debt
Pay off personal loans or credit card balances to improve your TDSR score. - Increase Loan Tenure
Longer tenures reduce monthly repayment, increasing your eligibility (but may cost more in interest). - Apply Jointly with a Co-Borrower
Using both incomes (e.g., with your spouse) raises your total gross income, allowing you to borrow more. - Use a Mortgage Broker
A broker can calculate eligibility across multiple banks and advise on how to structure your loan for better approval rates. - Time Your Application Right
Avoid switching jobs, taking new loans, or maxing out credit cards before applying.
Can Self-Employed Individuals Get Home Loans?
Yes, but the criteria are slightly stricter:
- Income is averaged over 2 years based on IRAS Notice of Assessment
- Banks may apply haircut (e.g., use only 70% of declared income)
- More documentation is needed (e.g., ACRA BizFile, bank statements)
Self-employed individuals should work with brokers who understand which banks are more accommodating to non-salaried profiles.
Conclusion
Understanding how much home loan you can get in Singapore involves more than just your income. Regulatory rules such as TDSR, MSR, and LTV limits all play a part in determining your eligibility. Your age, tenure, existing loans, and even the type of property you’re buying will affect how much you can borrow and what you can afford.
Before committing to a property, always get an Approval in Principle (AIP) or HDB Loan Eligibility (HLE) letter. Better yet, engage a mortgage loan broker who can guide you through the process, compare loan packages, and calculate your eligibility accurately.
Knowing your true borrowing capacity helps you avoid surprises, plan better, and move forward in your property journey with clarity and confidence.