How Home Loan Eligibility Works in Singapore
In Singapore, how much you can borrow isn't simply "what you ask for" — it's the lowest of three separate limits set by the Monetary Authority of Singapore (MAS): the Loan-to-Value (LTV) ratio, the Total Debt Servicing Ratio (TDSR), and — for HDB flats and Executive Condominiums only — the Mortgage Servicing Ratio (MSR). Whichever of these produces the smallest loan amount is what the bank will actually offer.
📝 The Three Limits
| Limit | Cap | Applies To |
|---|---|---|
| LTV (first bank loan) | 75% of price/valuation | All property loans |
| TDSR | 55% of gross income | All property loans (all debts counted) |
| MSR | 30% of gross income | HDB & EC only (housing loan only) |
TDSR was tightened from 60% to 55% in December 2021. The HDB loan LTV limit was reduced from 80% to 75% in August 2024, bringing it in line with bank loans.
🧪 The Stress Test: Why 4% (or 3%) Instead of Your Real Rate
Since September 2022, MAS requires banks to stress-test your affordability using a medium-term interest rate floor — 4% p.a. for TDSR calculations on private property, and 3% p.a. for MSR calculations on HDB/EC — regardless of your actual mortgage rate, which is often lower (commonly 2.5%–3.5% in 2026). This protects borrowers from being unable to afford repayments if rates rise, but it also directly caps the maximum loan size you can qualify for, even if your real monthly repayment would be comfortably lower.
📊 Variable Income & Loan Tenure
Variable income — bonuses, commissions, rental income, freelance earnings — is only counted at 70% of its declared value for TDSR/MSR purposes; fixed salary counts in full. Loan tenure is capped at 30 years for private property bank loans (25 years for HDB loans), and further capped so the loan ends by age 65. For joint applications, banks use an Income-Weighted Average Age (IWAA) — a younger co-borrower with meaningful income pulls the effective age down, extending the allowable tenure.
💡 Example Calculation
Scenario: Private condo at $1,200,000, buyer age 32, $8,000 fixed monthly income, no other debt, 30-year tenure.
1. LTV cap: $1,200,000 × 75% = $900,000
2. TDSR room: 55% × $8,000 = $4,400/month
3. Max loan supportable by $4,400/month at 4% stress rate, 30 years ≈ $921,000
4. Binding constraint: LTV ($900,000, lower than the TDSR-supportable amount)
5. Downpayment required: $1,200,000 − $900,000 = $300,000
6. Actual monthly repayment at 3.0% real rate, 30 years, $900,000 loan ≈ $3,795/month — well within the $4,400 TDSR room.
Note: This is a simplified example assuming a single borrower with no existing debt.
⚠️ Important Notes
- This calculator provides estimates only, based on 2026 MAS TDSR/MSR/LTV rules.
- It assumes a single borrower — joint applications use an Income-Weighted Average Age that can materially change the allowable tenure.
- It does not include Buyer's Stamp Duty (BSD) or Additional Buyer's Stamp Duty (ABSD), which are separate cash/CPF costs on top of the loan.
- LTV limits are lower for a second or subsequent outstanding housing loan — this calculator assumes a first housing loan.
- Actual bank offers vary by credit assessment, property type, and individual bank policy.
- For official guidance, see the Monetary Authority of Singapore (MAS) or consult a mortgage broker.