Singapore caps home loans at the lowest of three limits: 75% LTV for a first bank loan, 55% TDSR on all monthly debts, and 30% MSR for HDB or EC purchases. Banks stress-test repayments at 4.0% p.a. Run all three calculations — whichever produces the smallest figure is your actual maximum loan (as of 2026-06).
Getting pre-approved for a home loan in Singapore involves three independent ceilings that simultaneously constrain how much any bank will lend you. Miss one and your transaction can fall through at the last moment. The Loan-to-Value (LTV) limit caps the loan relative to the property's purchase price or valuation (whichever is lower). The Total Debt Servicing Ratio (TDSR) caps your combined monthly debt obligations relative to your gross income. For HDB flats and Executive Condominiums (ECs) bought directly from developers, the Mortgage Servicing Ratio (MSR) adds a tighter income-based ceiling. Your actual maximum loan is whichever of these three produces the smallest figure. Understanding how each cap works — and how to compute the income-based caps precisely — is the difference between putting in a bid you can finance and one that collapses at the financing stage.
The three regulatory caps explained
Loan-to-Value (LTV): For a first residential property financed by a bank, the LTV ceiling is 75% of the lower of purchase price or market valuation (as of 2026-06). A second outstanding loan reduces this to 45%, and a third or more to 35%. HDB concessionary loans carry an 80% LTV. The remaining value must be covered by cash and/or CPF — at least 5% must be in cash for bank loans. MAS publishes the full LTV table at mas.gov.sg — LTV limits.
Total Debt Servicing Ratio (TDSR): All monthly debt obligations — mortgage, car loan, personal loans, credit cards — must not exceed 55% of gross monthly income. MAS sets the stress-test interest rate: banks must compute the monthly repayment using the higher of the actual loan rate or the MAS medium-term rate floor (currently 4.0% p.a. for private property as of 2026-06). This prevents borrowers from overextending when rates eventually normalise. Detailed rules are published at mas.gov.sg — TDSR explainer.
Mortgage Servicing Ratio (MSR): Applies only to HDB flat and EC loans. The monthly repayment on all property loans must not exceed 30% of gross monthly income. Because MSR is a subset of TDSR (it counts only property loans), it is almost always the tighter binding cap for HDB and EC buyers. MSR rules are set by MAS and administered jointly with HDB; see hdb.gov.sg — housing loan options.
Tenure limits: Maximum loan tenure is 30 years for HDB loans and 35 years for bank loans on private property. However, if the loan expires after the borrower turns 65, the LTV limit is reduced (the bank lends a smaller proportion). For joint borrowers the age of the oldest borrower governs the tenure cut.
The maximum home loan in Singapore is capped by Loan-to-Value (LTV) at 75% of the purchase price for a first private property with a bank loan, and by TDSR (55% of gross income, computed at 4% stress rate). The actual binding limit is whichever of LTV or TDSR is more restrictive in your case.
LTV cap by property and loan type
| Property scenario | Max LTV |
|---|---|
| HDB loan, first HDB flat | 80% |
| Bank loan, first property (any type) | 75% |
| Bank loan, second property | 45% |
| Bank loan, third+ property | 35% |
An LTV reduction applies if the borrower is over 65 at the end of the loan tenure: max LTV drops by 25 percentage points (75% → 50% for first property, 45% → 20% for second). Source: MAS LTV framework.
TDSR cap on maximum loan
TDSR caps the loan based on income and existing debt obligations. For a borrower with zero other debts:
| Gross monthly income | TDSR headroom (55%) | Max loan @ 4% / 25 yr | Max loan @ 4% / 30 yr |
|---|---|---|---|
| S$5,000 | S$2,750 | S$521,000 | S$576,000 |
| S$10,000 | S$5,500 | S$1,041,000 | S$1,152,000 |
| S$15,000 | S$8,250 | S$1,562,000 | S$1,728,000 |
| S$20,000 | S$11,000 | S$2,083,000 | S$2,304,000 |
Loan tenure cap is 30 years for private property with bank financing. Source: MAS Notice 804.
Which cap binds?
For a first-time SC buyer of a S$1.5M private condo with S$10,000/month income and zero other debts:
- LTV cap = 75% × S$1.5M = S$1,125,000 max loan
- TDSR cap (4% / 25 yr) = S$1,041,000 max loan
- Binding cap: TDSR — S$1,041,000
The borrower would need to extend the tenure to 30 years (raising TDSR cap to S$1,152,000) to actually take the full 75% LTV loan — or accept a smaller loan and contribute additional cash/CPF to the downpayment.
The age 65 LTV reduction
A buyer aged 50 applying for a 25-year mortgage finishes the loan at age 75. Because that exceeds 65, the LTV is reduced by 25 percentage points to 50% for a first property. Source: MAS LTV framework.
To preserve full 75% LTV, the same buyer would need a 15-year tenure (loan ends at 65) — which raises monthly instalments and may breach TDSR.
For deeper financing context see the Singapore mortgage framework.
Frequently asked questions
Does property type affect max loan?
For HDB flats with an HDB Concessionary Loan, LTV is 80%; with a bank loan it drops to 75%. Private and EC max LTV is 75% for first property with bank loan.
Can I borrow above 75% LTV with additional cash collateral?
No. MAS LTV caps are regulatory and cannot be exceeded regardless of borrower wealth.
How does refinancing affect LTV?
For owner-occupied refinancing without cash-out, MAS LTV rules are relaxed. For cash-out refinancing, full LTV rules apply.
How to compute the income-based maximum loan
The key arithmetic for TDSR and MSR is working backwards from the monthly repayment ceiling to the loan principal that produces it. Follow these steps:
Step 1 — Gross income and haircuts. Use your gross monthly income. For variable or commission income, banks typically apply a 30% haircut (only 70% of variable income counts). Rental income receives a 30% haircut. CPF contributions from your employer count toward gross income if the bank accepts CPF income. Add a co-borrower's income to raise the ceiling, but note that if the co-borrower is a guarantor only (not a named borrower on the loan), their income is usually excluded.
Step 2 — Identify the income cap. Multiply verified gross monthly income by the applicable ratio: 55% for TDSR on private property, or 30% for MSR on HDB/EC. Then subtract all existing monthly debt repayments (car loan, personal loans, outstanding credit card minimum payments). What remains is the maximum additional monthly repayment available for the new mortgage.
Step 3 — Apply the stress rate. Banks use the higher of the contract rate or the MAS medium-term floor of 4.0% p.a. (private) when computing repayments for TDSR/MSR testing. This is not the actual rate you pay — it is only used to size the maximum loan. The formula for the maximum loan principal given a monthly repayment R, monthly rate r (= stress rate ÷ 12), and tenure n months is:
Max Loan = R × [ 1 − (1 + r)^(−n) ] ÷ r
Using a mortgage repayment calculator or the TDSR calculator automates this step.
Worked example — private property, first purchase. A 35-year-old earns S$9,000 gross per month with no existing debts. Property purchase price S$1,200,000; valuation S$1,180,000 (lower value governs). Tenure: 30 years (conservative; well within the 35-year cap and expires at age 65 — no LTV penalty).
- LTV cap: 75% × S$1,180,000 = S$885,000
- TDSR cap: 55% × S$9,000 = S$4,950 available repayment. Back-solving at 4.0% stress rate over 360 months: Max Loan ≈ S$1,036,000
- Binding cap: LTV wins at S$885,000 — cash/CPF shortfall of S$295,000 is required upfront.
Worked example — HDB flat. A household earns combined S$7,000 (both borrowers, no haircuts). Flat purchase price S$480,000. HDB loan available (80% LTV).
- LTV cap (HDB loan): 80% × S$480,000 = S$384,000
- MSR cap: 30% × S$7,000 = S$2,100 available repayment. HDB concessionary rate is pegged at 0.1% above CPF Ordinary Account rate (2.5% OA → 2.6% HDB rate); stress-tested at the actual rate for HDB loans. Back-solving at 2.6% over 360 months: Max Loan ≈ S$553,000
- Binding cap: LTV wins at S$384,000.
Use the affordability calculator to run these caps against your own income, debts, and tenure in one step. The total cost of ownership calculator adds Buyer's Stamp Duty and ABSD on top so you see the full cash requirement, not just the loan size.
What raises the maximum loan: clearing existing debts before applying (increases available repayment headroom under TDSR); adding a co-borrower with income (directly increases the 55%/30% ceiling); choosing a longer tenure within the regulatory cap (same monthly repayment stretches further); buying a property valued higher than price (rare, but LTV is computed off the lower of price or valuation so a higher valuation doesn't help).
What shrinks it: being older (tenure is capped so the loan expires before age 65 at full LTV; a 50-year-old on a 35-year bank loan would expire at 85 — banks may require a shorter tenure or apply the reduced LTV tier); having variable income (30% haircut reduces effective income); holding multiple outstanding loans (LTV drops to 45% or 35%; TDSR headroom is consumed by existing repayments). cpf.gov.sg — using CPF for home ownership covers how CPF balances reduce the required cash outlay for the down payment.
District-level price data from the price heatmap and per-district transaction history at individual district pages can help you calibrate what purchase price is realistic within your maximum loan ceiling, so you spend time viewing homes you can actually finance.
Step by step
- Gather your income documentation. Collect the last three months of payslips (or last two years of NOA for self-employed). Identify which components are fixed and which are variable — only 70% of variable and commission income counts for TDSR/MSR. Add a co-borrower's verified income if applicable.
- List all existing monthly debt obligations. Include car loans, personal loans, student loans, and the minimum payment on outstanding credit card balances. This is the amount deducted from your 55% / 30% cap before the mortgage can use any headroom.
- Count your outstanding property loans. Zero outstanding property loans means 75% LTV for a bank loan. One outstanding loan means 45% LTV; two or more means 35% LTV. If using an HDB concessionary loan, the LTV is 80% but MSR applies.
- Apply the LTV cap. Multiply the lower of purchase price and valuation by the applicable LTV percentage. This is your LTV-capped loan ceiling.
- Apply the TDSR cap (all properties). Multiply gross monthly income by 55%, subtract existing monthly debts. Use the residual as the maximum monthly repayment, then back-solve for the loan principal using the 4.0% stress rate and your chosen tenure. Use the TDSR calculator for this step.
- Apply the MSR cap (HDB and EC only). Multiply gross monthly income by 30%, subtract existing property loan repayments. Back-solve for the loan principal at the applicable stress rate. This cap applies in addition to TDSR — both must be satisfied.
- Take the lowest of all applicable caps. The smallest figure across LTV, TDSR, and (if relevant) MSR is your maximum loan. This is the starting point for structuring your bid.
- Compute total cash and CPF required. Subtract the maximum loan from the purchase price to get the total down payment. For bank loans, at least 5% of the purchase price must be in cash (not CPF). Check CPF limits via cpf.gov.sg — CPF for home ownership.
- Model tenure and age sensitivity. If you are over 40, test whether shortening tenure to keep the loan expiring before age 65 triggers a lower LTV tier — sometimes a shorter tenure raises the LTV but reduces the income-based loan.
- Get an In-Principle Approval (IPA). Once you have your own estimate, approach one or two banks for an IPA. It locks in the rate for 30 days and confirms the bank's own TDSR/MSR calculation before you put in an offer. Use the mortgage calculator to compare repayment across banks' offered rates before committing.
Frequently asked questions
Does the TDSR stress rate of 4% apply to HDB concessionary loans as well?
No. HDB concessionary loans are not subject to the MAS-mandated TDSR stress rate floor of 4.0% p.a. Instead, HDB uses the actual loan rate (CPF OA rate + 0.1%, currently 2.6%) for the MSR test. The MAS TDSR stress-rate floor of 4.0% applies to bank loans on private property and bank loans on HDB flats. If you take a bank loan for an HDB flat, the 4.0% stress rate applies (as of 2026-06).
What happens to my LTV limit if my property valuation comes in lower than the purchase price?
The LTV is always calculated against the lower of the purchase price and the bank's formal valuation. If you agree to pay S$1,000,000 but the bank values it at S$950,000, your 75% LTV cap is 75% of S$950,000 = S$712,500 — the S$50,000 shortfall must be funded entirely in cash (not CPF). This is sometimes called a "cash top-up." Checking recent transaction prices in the district data pages before making an offer helps avoid over-paying relative to market value.
Can rental income be included in gross income for TDSR purposes?
Yes, rental income from existing properties can be included, but banks apply a 30% haircut — only 70% of documented rental income counts toward gross income for TDSR. The rental must be evidenced by a tenancy agreement and typically the last 12 months of rental deposits or income. Undocumented or informal rental arrangements are usually excluded entirely.
If I clear my car loan before applying, how much does that raise my maximum home loan?
The effect is proportional to the freed-up repayment headroom. For example, if your car loan costs S$800 per month, clearing it adds S$800 back to your available repayment under the 55% TDSR cap. Back-solving at the 4.0% stress rate over a 30-year tenure, S$800 of additional monthly capacity supports approximately S$167,000 more in loan principal. For larger debts — a personal loan at S$2,000 per month — the gain is proportionally around S$418,000 extra. Use the affordability calculator to model this directly with your specific numbers.
Does adding a co-borrower always increase the maximum loan, or are there cases where it does not help?
Adding a co-borrower raises the combined gross income used in the TDSR/MSR calculation, which increases the income-based cap. However, if the LTV cap is already the binding constraint — meaning the income-based cap is already higher than 75% of valuation — adding more income does not raise the actual loan limit. Additionally, if the co-borrower already owns a property, their outstanding loan count is factored in and could reduce the LTV to 45%. And if the co-borrower is significantly older, the joint tenure may be reduced by the bank to ensure the loan expires before their age 65, which can reduce the income-based loan too.