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Home Loans in Singapore (2022): How to Apply for A Mortgage

·10-min read
Home Loans in Singapore (2022): How to Apply for A Mortgage
Home Loans in Singapore (2022): How to Apply for A Mortgage

When buying a home in Singapore, most people take out a home loan in order to finance the purchase. Here is a guide to the kinds of home loans you can take, what you need to apply for one and how to quickly and easily compare loans and choose the best one for you.

Home loans in Singapore

Simply put, taking out a home loan involves borrowing money from the bank in order to pay for the property. In the case of HDB property, it is also possible to borrow money from the HDB (i.e., an HDB housing loan) rather than a bank.

The bank or the HDB will disburse money to pay for the property. After that, you will repay your home loan in monthly installments over a number of years.

HDB vs bank loans

If you are buying private property, your loan will need to come from a bank. HDB flat buyers can choose between an HDB loan and bank loan.

Bank loans typically offer different loan packages for uncompleted property (BUC) and completed property. You can also choose between fixed rate and floating rate loans.

Banks which offer home loans in Singapore include DBS, OCBC, UOB, Maybank, HSBC, Citibank, CIMB, Standard Chartered Bank, Bank of China, Hong Leong Finance and RHB.

If you are buying HDB property, you can take out a bank loan or an HDB loan. At the outset, HDB loan interest rates are typically higher than bank loan interest rates, but offer a great deal of stability as they are pegged at 0.1% above the CPF Ordinary Account (OA) interest rate, which has remained unchanged since 1999.

HDB loans are also a bit more forgiving than bank loans as they offer a higher Loan-to-Value limit and require a smaller downpayment than bank loans, which enables the buyer to borrow more money upfront.

Fixed vs floating rate loans

Fixed rate loans lock in interest rates for a number of years before the interest rate starts to fluctuate. They can thus be a good option if you anticipate that interest rates will rise in the near future.

Right now, fixed rate home loans are hovering at around the 2.65% to 3% mark.

Floating rate loans are pegged to a benchmark such as the Singapore Overnight Rate Average (SORA). They are thus fluctuating, which means your monthly repayments can change from month to month.

Floating rate packages nowadays usually tack on about +0.78% to +1% to SORA. For example, it could be 3M SORA + 0.8%.

[ArticleCallout]{ “title”: “Fixed vs Floating Rate Home Loans in Singapore: How to Pick the Right One (2022)”, “excerpt”: “One of the first things property buyers must decide on is the type of home loan to take. In Singapore, these are the two major types of property loans that banks offer: fixed rate and floating rate loans.”, “link”: “”, “image”: “×624-crop/static/2019/10/Fixed-vs-Floating-Rate-Home-Loans.jpg” } [/ArticleCallout]

How to Get A Home Loan in Singapore

When searching for a home loan in Singapore, it is recommended that you compare home loans from different banks to find one with an attractive interest rate.

Find A Suitable Home Loan

To compare home loans, you can do it the hard way by enquiring at all the different banks individually and then applying for a home loan with a banker.

A less tedious way to source for a home loan is to compare loans on PropertyGuru Finance. You can then let a PropertyGuru Finance mortgage advisor do the heavy lifting by helping you with your paperwork and applications and keeping you informed of any updates.

PropertyGuru Finance advisors can also give you personalised help with planning your finances and answer any questions you might have.

Chat with us on WhatsApp Fill up an online form [PropertyTip]Get an In-Principle Approval (IPA) just in case! [/PropertyTip]

Getting In-Principle Approval (IPA) from a bank is a smart way to prepare in advance to finance our property, and gives you the assurance that you will be able to afford a property before you commit to paying the option fee.

When a bank gives you an IPA, they are indicating the amount they are willing to lend you. This gives you a good indication of your downpayment, the loan tenure and approximate installment amounts you will need to pay.

An IPA is usually valid for 30 days so long as your financial situation and credit history stay the same.

You can apply for an IPA through PropertyGuru Finance with the help of our advisors’ personalised help. It’s free!

Checklist of Required Documents for Home Loan Applications

The home loan application process involves a lot of paperwork, so it is a good idea to start gathering all the necessary documents as soon as possible. Here is what you will need to submit with your application.

  • NRIC / Passport

  • HDB flat and financial information (if applicable)

  • Option to Purchase or Sales and Purchase Agreement

  • Value, confirmed by HDB (for HDB resale transactions)

  • Valuation report (for private property and EC transactions)

  • Latest Notice of Assessment (NOA) and past 12 months’ CPF contribution history

  • Latest 3 months’ pay slips

  • Latest 3 months’ salary crediting account statements (if working overseas)

  • CPF Property Withdrawal Statement

  • HDB Printout

  • Credit Card / Credit Line statements

  • Details on other loans

To be sure of the precise list of documents you need to furnish, always check with the bank you are applying to.

Bonus: Decoding Property and Mortgage Jargon

Not sure what that jargon means? Here’s a glossary of some of the most common terms you might come across.


Additional Buyer’s Stamp Duty (ABSD) is a tax that must be paid by all Singapore citizens buying a second or subsequent residential property, and all PRs and foreigners buying any residential property.

[ArticleCallout]{ “title”: “Additional Buyer’s Stamp Duty (ABSD) in Singapore (2022): A Guide for Property Buyers”, “excerpt”: “ABSD is a tax that’s levied on top of Buyer’s Stamp Duty (a tax that property buyers have to pay when they buy a property), and it’s computed based on the valuation or the selling price of the property, whichever is higher. Learn more here.”, “link”: “”, “image”: “×624-crop/static/2020/01/ABSD-was-first-introduced-in-2011-as-a-property-cooling-measure.jpg” } [/ArticleCallout]


Cash Over Valuation (COV) is the difference between an HDB resale flat’s sale price and its valuation by the HDB. In other words, the COV is the amount the buyer is overpaying vis a vis the valuation. The maximum loan amount will be calculated based on the valuation of the property or the purchase price, whichever is lower. Hence, COV must be paid for in cash.

[ArticleCallout]{ “title”: “What Is Cash Over Valuation and How It Affects Your HDB’s Appreciation”, “excerpt”: “<strong>Cash over valuation</strong>, or COV in short, is the difference between the sale price of a resale HDB flat and its <a href=\u0022\u0022>actual valuation by HDB</a>. Learn more here.”, “link”: “”, “image”: “×624-crop/static/2018/11/HDB-flats-COV.jpg” } [/ArticleCallout]


Buyer’s Stamp Duty (BSD) is a tax that must be paid by anyone buying property in Singapore. BSD is calculated based on the property price or market value of the property, whichever is higher.

[ArticleCallout]{ “title”: “Buyer’s Stamp Duty Guide for Property Buyers: What It Is and How Much to Pay (Up to 4%)”, “excerpt”: “Buyer’s Stamp Duty, or BSD for short, is a tax levied on all purchases of property, even HDB flats, within Singapore. This tax applies only to the buyer. Learn more here.”, “link”: “”, “image”: “×624-crop/static/2020/03/Buying-property-doesn-t-mean-having-enough-for-just-the-property-itself-since-you-need-to-account-for-Buyer-s-Stamp-Duty.jpg” } [/ArticleCallout]


Loan-To-Value (LTV) is a ratio indicating the maximum amount a bank or the HDB can legally lend to a buyer.

[ArticleCallout]{ “title”: “Loan-To-Value Ratio (LTV) For Singapore Property in 2022: A Complete Guide”, “excerpt”: “The LTV determines the maximum amount of funds you can borrow and hence, how much downpayment you need to pay upfront in cash and/or CPF Ordinary Account (OA) savings. Learn more here.”, “link”: “”, “image”: “×624-crop/static/2019/10/loan-to-value-ltv-ratio-singapore-propertyguru.jpg” } [/ArticleCallout]


Mortgage Servicing Ratio (MSR) caps at 30% the percentage of a borrower’s gross monthly income that can be spent on all property loans, including the home loan he or she is applying for.

[ArticleCallout]{ “title”: “What Is Mortgage Servicing Ratio (MSR)?”, “excerpt”: “Unlike the Total Debt Servicing Ratio (TDSR), which applies to all housing loans, the Mortgage Servicing Ratio (MSR) in Singapore applies only to loans for HDB flats and Executive Condominiums (ECs).”, “link”: “”, “image”: “×624-crop/static/2015/04/mortgage-servicing-ratio-msr-hdb-.jpg” } [/ArticleCallout]


Total Debt Servicing Ratio (TDSR) caps at 55% the percentage of a borrower’s gross monthly income that can be spent on all monthly debt repayments, including housing loans, student loans, car loans, personal loans and credit card debt.

[ArticleCallout]{ “title”: “Total Debt Servicing Ratio in Singapore (2022): What Is TDSR?”, “excerpt”: “In a nutshell, the TDSR limits the amount that you can spend on your monthly debt repayments (student loans, car loans, personal loans, etc) to 55% of your gross monthly income. Learn more here. “, “link”: “”, “image”: “×624-crop/static/2020/02/The-TDSR-framework-seeks-to-ensure-loan-applicants-do-not-take-on-too-much-debt-propertyguru.jpg” } [/ArticleCallout]

Cooling Measures

Cooling measures are periodically put in place by the Singapore government to reduce demand for property. The most recent raft of cooling measures was put in place in December 2021.

[ArticleCallout]{ “title”: “Singapore Property Cooling Measures 2021: What the Higher ABSD, Tighter TDSR, and Lower LTV Means For You”, “excerpt”: “At almost midnight on 15 Dec 2021, the government suddenly dropped an announcement that new Singapore property cooling measures would be implemented the next day. Learn more about them here. “, “link”: “”, “image”: “×624-crop/static/2021/12/singapore-property-cooling-measures-december-2021.jpg” } [/ArticleCallout]

For more property news, resources and useful content like this article, check out PropertyGuru’s guides section.

Are you looking to buy a new home? Head to PropertyGuru to browse the top properties for sale in Singapore.

Already found a new home? Let PropertyGuru Finance’s home finance advisors help you with financing it.

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