Learn more about taking a mortgage loan for your housing needs, how much you can loan and the down payment needed.
Taking a Bank Loan
To finance your residential property
Max loan amount
75% of Purchase Price or Valuation whichever is lower
Max 30 years
Mortgage of property to Bank
Not more than 60% of Gross Income (TDSR)
* Fixed Rate - Applies for initial period; floating rates apply thereafter
Variable Rate - Tied to reference interest rates
Total Debt Servicing Ratio (TDSR)
TDSR refers to the total monthly loan repayment ratio which is measured against your gross monthly income before any CPF deductions. It has a 60% threshold, meaning all debt obligations are not allowed to exceed 60% of a person's gross monthly income.
Alex has a gross monthly income of $6000
TDSR limit is at 60%, equivalent to $3600
Servicing monthly repayments: $1500 (Car loan $1000 + Student loan $500)
Amount available for home loan: $3600 - $1500
Taking a HDB Concessionary Loan
To finance your HDB Flat
If you are intending to purchase a HDB flat and taking a HDB Concessionary loan, you have to know your eligibility to buy and how to apply for HDB Loan Eligibility (HLE) Letter.
To be eligible for a HDB loan:
At least one applicant needs to be a Singaporean Citizen
Applicant needs to be 21 years old and above
Household income must not exceed $12,000 and $18,000 for extended families
Applicant must not have owned/ disposed of any private residential properties within the last 30 months
Applicant does not own more than 1 hawker stall or commercial property
HDB Loan Eligibility (HLE) Letter
To take a HDB loan, you first have to obtain a HLE letter before committing to a transaction.
This HLE letter provides information on:
Your eligible loan amount
Amount of cash proceeds available from disposal of existing flat