How do I know if I am eligible for a home loan in Singapore?

Eligibility for a home loan in Singapore depends on your citizenship status, income, age, existing financial obligations, and the type of property you're buying.

HDB Loans

An HDB loan, formally the HDB Concessionary Loan, is a loan from the Housing and Development Board itself rather than from a bank. HDB is the lender, and the loan can only be used to buy an HDB flat, whether a new BTO flat or a resale flat bought from an existing owner.

This is worth stating plainly because it is a common point of confusion: an HDB loan cannot be used for a private property, and it cannot be used for an Executive Condominium either, even a new EC bought from a developer under HDB rules. For anything other than an HDB flat, a bank loan is your only route.

The rate is set at 2.6% per annum, pegged to the CPF Ordinary Account interest rate plus 0.1%, and it has held at that level for many years. Unlike a bank package, there is no lock-in period, no penalty for early repayment, and no need to review your rate every two or three years.

To qualify:

• At least one applicant must be a Singapore Citizen.
• Household income must not exceed $16,000 per month for families, or $8,000 per month for singles.
• You must not have taken more than two HDB loans previously.

One further point to keep in mind: the move between loan types only runs one way. You can refinance from an HDB loan to a bank loan whenever it suits you, but once you have done so you cannot return to an HDB loan.

Bank Loans

Bank loans are open to Citizens, PRs, and in many cases foreigners, depending on the lender. They can be used for any property type, including HDB flats, and they are the only option for private property and Executive Condominiums.

Banks assess eligibility against two key frameworks. The Total Debt Servicing Ratio (TDSR) caps your total monthly debt obligations, including the new mortgage, at 55% of gross monthly income. The Mortgage Servicing Ratio (MSR) applies specifically to HDB flats and Executive Condominiums, limiting your monthly home loan repayment to 30% of gross monthly income. Where both apply, the lower of the two is what constrains your borrowing.

Banks also consider your age, which affects your maximum loan tenure, along with your credit history, employment stability, and the type and valuation of the property.

Using a platform like Cashew lets you check eligibility across multiple banks at once, without the hassle of approaching lenders individually or triggering multiple credit inquiries that could affect your credit score.