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Kooky
Builder of Shaka, the payment router that pays every agent their commission on closing date.
About Kooky and Shaka →Ask how much a buyer can borrow for a home in Singapore and the answer comes back as three sets of initials. LTV caps the loan against the value of the property. TDSR and MSR cap the monthly repayment against the borrower's income. A loan has to pass every test that applies to it, so the amount a household can actually borrow is the smallest of the results, not the most generous one.
The tests are short to state and easy to misread. Official pages quote a bank loan at 75% of the property's value in one place and at 55% in another, and both are right, because the Monetary Authority of Singapore (MAS) sets two tiers. This guide goes through each limit as its source states it, shows how the limits combine in worked examples, and sets the HDB housing loan beside a bank loan on the points where the CPF Board says they differ.
Monetary Authority of Singapore explainers on rules for new housing loans (last revised 16 December 2021) and on loan tenure and loan-to-value limits (published 5 July 2018).
Three limits, each measuring something different
MAS's explainer on the rules for new housing loans, last revised on 16 December 2021, sets out the framework that financial institutions follow. It lists four things: a maximum loan tenure, a loan-to-value limit, a mortgage servicing ratio and a total debt servicing ratio.
Loan-to-value, or LTV, is the loan amount as a percentage of the property's value. MAS gives its own illustration: a loan of S$150,000 on a property worth S$1,000,000 is an LTV of 15%. The LTV limit is therefore a ceiling on the loan that no level of income can lift. According to MAS, it depends on the loan tenure, the borrower's age, the housing loans the borrower already has, and whether the borrower is an individual at all.
Related readUS 30-year mortgage rate climbs to 7.40%, a fourth weekly riseThe two servicing ratios work from the other end. They take the borrower's gross monthly income and limit the share of it that can go to repayments. The mortgage servicing ratio (MSR) looks only at property loans. The total debt servicing ratio (TDSR) looks at every debt obligation the borrower has, housing or not.
Tenure is the fourth piece. MAS puts the maximum loan tenure at 30 years for HDB flats and 35 years for other properties. Tenure matters twice: a longer loan lowers each monthly repayment, which helps with the income tests, but past a certain length it also moves the loan into the lower LTV tier.
The loan-to-value limits for a bank loan
The MAS explainer on loan tenure and loan-to-value limits, published on 5 July 2018, gives the table that banks and other financial institutions apply. It covers residential property loans where the option to purchase (OTP) is granted on or after 6 July 2018. Each row has two LTV figures, a higher and a lower, and a minimum share of the price that must be paid in cash.
| Outstanding housing loans | Higher LTV limit | Lower LTV limit | Minimum cash downpayment |
|---|---|---|---|
| None | 75% | 55% | 5% at 75% LTV, 10% at 55% LTV |
| One | 45% | 25% | 25% |
| Two or more | 35% | 15% | 25% |
Monetary Authority of Singapore, explainer on loan tenure and loan-to-value limits. The lower limit applies when the tenure exceeds 30 years (25 years for HDB flats) or the loan period runs past the borrower's age of 65.
The rule that chooses between the two columns is the same on every row. According to MAS, the lower limit is used if the loan tenure is longer than 30 years, or longer than 25 years when the property is an HDB flat, or if the loan period extends beyond the borrower's age of 65. Either condition is enough.
The cash column is separate from the LTV column. It says how much of the price must come from the buyer's own cash, whatever else makes up the rest. For a buyer with no other housing loan, that is 5% when the loan is at the 75% tier and 10% when it is at the 55% tier.
Related readUS buyers turn to adjustable-rate mortgages as fixed rates pass 7%A worked example shows the size of the step between tiers. Assume an HDB resale flat bought for S$600,000, valued at the same S$600,000, by a buyer with no outstanding housing loan. At the higher tier the bank loan can reach 75%, or S$450,000, and at least 5%, or S$30,000, is paid in cash. The buyer has to find S$150,000 in all. At the lower tier the loan stops at 55%, or S$330,000, the cash minimum is 10%, or S$60,000, and the buyer has to find S$270,000. The same flat needs S$120,000 more from the buyer when the loan falls into the lower tier. These are illustrative figures, not market data.
Why official pages quote different figures for the same loan
Readers who compare official pages will find that they do not all give the same number for a bank loan. The CPF Board's comparison of the HDB loan and the bank loan, published on 12 June 2026, says a bank loan covers up to 75% of the bank valuation or the purchase price, whichever is lower, with a 25% downpayment of which 5% is in cash. The MAS explainer gives 75% or 55% for a borrower with no outstanding housing loan, with a 5% or 10% cash minimum.
The two pages are not in conflict. The CPF Board's figure is the higher of MAS's two tiers: the one that applies to a first housing loan whose tenure stays within 30 years (25 years for an HDB flat) and which ends by the borrower's age of 65. Its 5% cash share is the cash minimum MAS attaches to that tier. A page that quotes 55% with 10% in cash is describing the lower tier of the same table, which applies once the tenure or the age condition is crossed.
Related readUSA: 2026 conforming loan limits, jumbo loans and cancelling PMIA single LTV percentage is one tier of the MAS table, not the whole rule
For a first housing loan from a financial institution, MAS sets 75% or 55%. Which one applies depends on the loan tenure and on the borrower's age at the end of the loan, so a quoted figure is only complete when it says which tier it is.
Two details of wording are worth noticing. MAS defines LTV against the property's value, while the CPF Board spells out that a bank lends against its own valuation or the purchase price, whichever is lower. And neither figure is a promise: the CPF Board adds that a bank loan is also subject to the MSR and the TDSR, so the income tests can leave the loan below the LTV ceiling.
How age and tenure decide the tier
The tenure condition is simple to check: more than 30 years, or more than 25 years for an HDB flat, and the lower limit applies. The maximum tenures MAS allows, 30 years for HDB flats and 35 years for other properties, are therefore longer than the tenures that keep the higher LTV. A buyer of an HDB flat who stretches a bank loan from 25 to 30 years stays within the permitted tenure but moves from 75% to 55%.
The age condition looks at where the loan ends, not where it starts. If the loan period extends beyond the borrower's age of 65, the lower limit applies. For a borrower aged 45, a 20-year loan ends at 65 and a 25-year loan ends at 70.
When there are two or more borrowers, MAS does not take the age of the oldest or the youngest. It uses an income-weighted average age: each borrower's age is multiplied by that borrower's share of the combined gross monthly income, and the results are added. MAS's own example pairs a 60-year-old earning S$8,000 a month with a 30-year-old earning S$10,000 a month. The first has eight-eighteenths of the income and the second ten-eighteenths, which gives 26.67 and 16.67, and MAS states the result as 43.34.
Related readFed minutes describe US mortgage financing as somewhat restrictiveCarrying that example one step further, as an illustration: with a weighted age of 43.34, a loan period of up to about 21 years ends by 65. A 25-year loan would run to a weighted age of 68.34 and fall into the lower tier, even though one of the two borrowers is only 30. The weighting means that the higher earner's age counts for more, in either direction.
TDSR and MSR: the two income tests
The TDSR is the broader test. According to the MAS explainer, a borrower's repayments on all debt obligations, including the new loan, should not exceed 55% of gross monthly income. The threshold was 60% until the Ministry of Finance announced, on 15 December 2021, that it would be 55% from 16 December 2021, for properties whose option to purchase was granted on or after that date. The same announcement applied the 55% threshold to mortgage equity withdrawal loans applied for on or after 16 December 2021, unless the loan-to-value is 50% or less, and left the refinancing of loans granted earlier unaffected.
The MSR is narrower in both senses. It counts only property loans, and according to MAS it applies only to the purchase of HDB flats and executive condominiums (ECs). The joint release by MAS, the Ministry of National Development and HDB of 29 September 2022 describes it as applying to HDB flats and to EC units bought directly from developers. Repayments on all property loans, including the new one, should not exceed 30% of gross monthly income.
A private condominium bought with a bank loan is therefore tested on the TDSR alone. An HDB flat bought with a bank loan is tested on both, as the CPF Board's comparison says. An HDB flat bought with an HDB loan is held to the 30% ratio: the CPF Board states that HDB loan repayments cannot exceed 30% of gross monthly income.
Related readUS: FHA makes new appraisal format optional as Fannie, Freddie bendThe repayment used in these tests is not always the repayment the borrower will pay. In the September 2022 release, MAS raised the medium-term interest rate floor used to compute the TDSR and the MSR for residential property loans from private financial institutions from 3.5% to 4% a year. Lenders use the higher of the floor or the rate the loan will carry after any introductory period. The 4% floor applies where the option to purchase was granted on or after 30 September 2022; borrowers refinancing loans on owner-occupied homes are not affected. For non-residential property loans, the floor rose from 4.5% to 5% a year.
MAS was explicit that the floor is a test rate, not a price. The actual interest rates on mortgages continue to be set by the financial institutions. The floor changes how large a loan a given income can qualify for.
HDB has its own equivalent. The same release introduced an interest rate floor of 3% a year for computing the eligible HDB housing loan amount, for loan eligibility applications received on or after 30 September 2022. The rate HDB actually charges did not change with it.
How gross monthly income is counted for these ratios, including the treatment of variable or rental income, is set out on other MAS pages and notices that were not read for this guide, and it is left out here.
From a monthly ceiling to a loan amount
The ratios produce a monthly figure. Turning it into a loan amount takes a rate and a tenure, which is where the floors come in. The following is a worked example with illustrative figures. It assumes a household with a gross monthly income of S$9,000, a car loan costing S$800 a month and no other debt, no outstanding housing loan, and level monthly repayments over the whole tenure.
Related readUS: FHFA reported to plan two-bureau credit reports at Fannie, FreddieThe MSR allows 30% of S$9,000, or S$2,700 a month, for property loans. The TDSR allows 55%, or S$4,950, for all debts; after the S$800 car loan, S$4,150 is left for housing. For an HDB flat both tests apply and the smaller figure, S$2,700, sets the limit. For a private property only the TDSR applies, and the figure is S$4,150.
| Case | Monthly ceiling | Test rate and tenure | Loan supported |
|---|---|---|---|
| HDB flat, bank loan | S$2,700 (MSR) | 4%, 25 years | About S$511,500 |
| HDB flat, HDB loan | S$2,700 (30% ratio) | 3%, 25 years | About S$569,400 |
| Private home, bank loan | S$4,150 (TDSR) | 4%, 30 years | About S$869,300 |
Illustrative figures computed from the MAS and HDB test rates with level monthly repayments. In the HDB loan row, the 25-year tenure and the use of the 3% floor with the 30% ratio are assumptions: the 2022 release does not say how the two combine.
Each result is then compared with the LTV ceiling, and the lower of the two is the loan. Take the S$600,000 flat of the earlier example. The bank's LTV ceiling at the higher tier is S$450,000, and the income supports about S$511,500 over 25 years, so here the LTV limit is the one that binds. A loan of S$450,000 over 25 years at the 4% test rate works out at about S$2,375 a month, under the S$2,700 ceiling. Turned around, a household would need a gross monthly income of about S$7,920 for a S$2,375 repayment to stay within 30%.
The example also shows why a longer tenure is not a free gain. Stretching the bank loan on the flat to 30 years would lower the test repayment on S$450,000 to about S$2,148 a month. But 30 years is more than 25, so the LTV limit for an HDB flat would drop to 55%, and the largest loan on the S$600,000 flat would be S$330,000.
The HDB loan: 75% and a pegged rate
The HDB housing loan is a loan from the Housing and Development Board itself, on its own terms. Its LTV limit has come down three times in under three years, each time by five percentage points.
Related readUS law lets HUD pilot support for mortgages of US$100,000 or less- 16 December 2021Reduced from 90% to 85%. Loans from financial institutions stayed at 75%.
- 30 September 2022Lowered from 85% to 80% for new flat applications and complete resale applications received from that date.
- 20 August 2024Lowered from 80% to 75%, two days after the National Day Rally announcement.
The first step is from the Ministry of Finance's announcement of 15 December 2021, the second from the joint release of 29 September 2022, and the third from HDB's letter to key executive officers of estate agents dated 19 August 2024, which gives the effective time as 12.00am on 20 August 2024. Since then the HDB loan and the higher tier of a bank loan have stood at the same percentage.
What the 75% is measured against is stated by the CPF Board: up to 75% of the purchase price for a Build-To-Order (BTO) flat, and for a resale flat up to 75% of the resale price or the market valuation, whichever is lower.
The interest rate is the other defining feature. According to the 2022 joint release, the HDB concessionary rate is pegged at 0.1 percentage point above the prevailing CPF Ordinary Account interest rate and is reviewed quarterly. It was 2.6% a year in that release, and the CPF Board described it as currently 2.6% a year in June 2026.
Bank loans are priced differently. The CPF Board describes them as either floating, pegged to a benchmark such as SORA, or fixed for a set period, usually one to three years, before reverting to a floating rate. It notes that some borrowers obtained rates below 1.5% a year in 2020 and 2021, and that rates rose in 2022 and 2023, with some above 4% a year.
HDB loan and bank loan compared
The CPF Board's comparison sets the two loans side by side. The table below gathers the points it makes, for a buyer of an HDB flat who has the choice.
Related readUS mortgage applications fall 4.2% as lenders tighten credit slightly| Point | HDB loan | Bank loan |
|---|---|---|
| Loan ceiling | 75% of price, or of price or valuation if lower for resale | 75% of bank valuation or price, whichever is lower |
| Income tests | Repayments within 30% of gross income | MSR and the 55% TDSR |
| Downpayment | At least 25%, from CPF, cash or both | 25%, of which 5% in cash |
| Interest | 2.6% a year, pegged to the CPF Ordinary Account rate | Floating, or fixed for usually one to three years |
| Lock-in | None, no early repayment penalty | Typically one to three years |
| CPF savings | Used first; up to S$20,000 may be kept | Any amount may be kept |
CPF Board, comparison of the HDB loan and the bank loan. The bank loan ceiling shown is the higher MAS tier.
The lock-in line deserves a little arithmetic. The CPF Board says that paying off a bank loan, or refinancing it with another bank, during the lock-in period brings a penalty of around 1.5% of the outstanding loan, varying by bank and package. As an illustration, 1.5% of an outstanding S$400,000 is S$6,000. The Board also lists legal fees, valuation fees and possible clawbacks of subsidies or rebates among the other costs of moving a loan.
The choice also runs in one direction only. According to the CPF Board, an HDB loan can be refinanced to a bank loan at any time, subject to the bank's approval, but a borrower who has done so cannot switch back to an HDB loan. A bank loan cannot be refinanced to an HDB loan; it can be repriced with the same bank, or moved to another bank, usually after the lock-in period.
The downpayment: cash, CPF and cash over valuation
The loan ceiling defines the downpayment by subtraction, but the rules on what the downpayment is made of differ between the two loans.
With an HDB loan, the CPF Board says the downpayment is at least 25% of the purchase price and can be paid entirely from CPF Ordinary Account savings, entirely in cash, or with a mix. With a bank loan it is 25%, of which 5% must be cash and the remaining 20% can be cash or Ordinary Account savings. On a S$600,000 flat, 25% is S$150,000 in both cases. The difference is that the bank-loan buyer needs at least S$30,000 of it in cash, while the HDB-loan buyer may need none.
Related readUS: TransUnion and Equifax let mortgage lenders buy scores laterThe use of CPF savings also differs. With an HDB loan, the CPF Board explains, available Ordinary Account savings must be used for the purchase before the loan covers the remainder, though up to S$20,000 may be kept in the account. So an HDB loan can end up smaller than its ceiling. As an illustration, take a S$500,000 BTO flat and buyers with S$180,000 in their Ordinary Accounts. The ceiling is 75%, or S$375,000. Keeping S$20,000 leaves S$160,000 to use, and the loan needed is S$340,000. With a bank loan, the Board says, a buyer can keep any amount in the Ordinary Account and service the loan in cash.
Cash over valuation, or COV, applies to resale flats. When the resale price is higher than the market valuation, the CPF Board states that the difference must be paid fully in cash; neither CPF savings nor the loan can cover it. As an example, a flat valued at S$600,000 and bought for S$620,000 carries a COV of S$20,000. The loan ceiling is 75% of the lower figure, S$450,000, and of the S$170,000 the buyer has to provide, at least S$20,000 is cash before any other cash requirement. The Board points out that a bank-loan buyer may face both the 5% cash downpayment and the full COV in cash.
For new flats the payment is staged. The CPF Board says the downpayment for a BTO flat is due at key collection. HDB's administrative annex for its July 2025 BTO and Sale of Balance Flats exercises describes the earlier stage: at the Agreement for Lease, buyers pay 10% of the flat price if taking an HDB loan or 20% if taking a loan from a financial institution, and eligible young couples under deferred income assessment pay 2.5%. On a S$500,000 flat those shares are S$50,000, S$100,000 and S$12,500. The same annex says buyers taking a loan from a financial institution must produce a Letter of Offer before signing the Agreement for Lease. These terms are those of the July 2025 exercises as HDB published them.
Related readAustralia: how APRA's debt-to-income limit and buffer cap home loansBeyond the downpayment, the CPF Board lists what Ordinary Account savings can pay for: the housing loan itself, stamp duty and legal fees, and, for HDB flats only, Home Protection Scheme premiums. It also notes the obligation at the other end. On a sale, the CPF savings used, plus the interest they would have accrued, must be refunded to the member's CPF account.
A second loan, a company buyer, a refinancing
The MAS table tightens quickly for anyone who already has a housing loan. With one outstanding loan, the LTV limit is 45%, or 25% at the lower tier, and the minimum cash downpayment is 25%. With two or more, it is 35% or 15%, with the same 25% in cash.
As a worked example, take a S$1.2 million private property bought by someone with one outstanding housing loan. At the 45% tier the loan can reach S$540,000. A quarter of the price, S$300,000, must be cash, and the remaining 30%, S$360,000, comes from the buyer's other resources. If the tenure exceeded 30 years or the loan ran past age 65, the limit would be 25%, a loan of S$300,000. For a buyer with two outstanding loans the figures would be S$420,000 at 35% and S$180,000 at 15%.
CPF savings are restricted too. The CPF Board's page on how much can be used for a property purchase, last updated on 18 September 2026, says that for a second or subsequent property, Ordinary Account savings can be used only after setting aside the Basic Retirement Sum, if the buyer has a property with a lease lasting to age 95, or the Full Retirement Sum if not.
Related readAustralia's big four banks pass on the cash rate rise from 9 OctoberBorrowers that are not individuals sit at the bottom of the table. For shell companies and other non-individual borrowers, MAS sets the LTV limit at 15%, which on the same S$1.2 million property is a loan of S$180,000.
Refinancing is treated more gently than a new purchase in the sources read for this guide. The 55% TDSR threshold of December 2021 does not affect the refinancing of loans granted before 16 December 2021, according to the Ministry of Finance, and the 4% test rate of September 2022 does not apply to borrowers refinancing loans on owner-occupied homes, according to MAS. For other property loans being refinanced, the 2022 release keeps the medium-term rate that applied when the loan was first taken.
What this guide leaves open
Some parts of the picture could not be confirmed on a primary page and are deliberately absent.
HDB's own conditions for granting a housing loan, including any income ceiling and its credit assessment, are not described here; this guide covers the HDB loan only through the CPF Board's comparison and the releases that set its LTV limit and rate. HDB's letter of 19 August 2024 gives the 75% limit and its effective date without spelling out which applications it covers.
The detailed MAS rules on the two servicing ratios, including how different kinds of income are counted and which loans are exempt, are also outside what was read. The MAS loan-to-value explainer dates from 2018 and its parent page was last revised in December 2021; the tiers above are given as those pages state them.
Kooky, from Shaka
Kooky edits Agents Estate and builds Shaka, the payment router he made for real estate professionals. One payment comes in, and every agent, agency and party in the deal receives their signed share on closing date.
