How do I apply for a home Bank loan?

Step 1 – Compare the best home loans
First, you’ll need to compare the latest home loan interest rates and packages available on the market. Let us do the heavy lifting for you. Simply fill up a simple form and our mortgage specialists will compare and prepare a list of the best home loans for you. We will help you with your applications, answer your questions, and give you unbiased advice.

Step 2 – Get Your In-Principle Approval (IPA)
The next step is identifying how much you can borrow. Factors such as Total Debt Servicing Ratio (TDSR) and valuation of the property plays the largest roles. Getting your In-Principle Approval in advance will ensure you get the right property without delay.

Step 3 – Apply for your home loan
Once you have your IPA, your home loan application process can be completed within two to seven working days.

What are the differences between bank and hdb loans?

HDB loans are available only to HDB property purchases, while bank loans can be taken up for any property type. Eligibility of the buyer plays a part too (to be addressed later).

An overview of the differences between bank and HDB loan:

Property type: HDB

Back to top

What is the difference between floating and fixed rate?

Fixed rates

A fixed interest rate ensures that your home loan’s interest rate remains constant for a specific duration, typically 2 to 5 years depending on your lock-in period. This means that your monthly installments will remain unchanged during this period.

Opting for a fixed interest rate offers the advantage of predictable cash flow management since your payments are consistent. However, it’s important to note that once the lock-in period expires, your home loan’s interest rate is likely to increase or switch to a floating rate.

It is recommended to get in touch with your bank to explore the possibility of repricing or refinancing your loan in order to obtain a desirable lower interest rate once the lock in period is over.

Floating rates

A floating interest rate, also known as a variable interest rate, is subject to change and can fluctuate based on market conditions.

In Singapore, there are four main types of floating interest rates: Board rates, SORA floating rates, SIBOR floating rates (which will be fully phased out by 2024), and fixed deposit rates. The movement of these rates is influenced by factors such as market conditions. Here is a summary of how these rates may vary.

Factors determining floating rates

How much can you borrow? Also known as TDSR

Having a clear understanding of your borrowing capacity, both as an individual and with your co-buyer, is crucial in evaluating your property choices.

 The implementation of the Total Debt Servicing Ratio (TDSR) in 2013 aimed to promote responsible borrowing by setting a limit on the amount you can borrow. Currently, the TDSR restricts borrowing to a maximum of 55% of your gross monthly income (before CPF deduction). It’s worth noting that the limit was initially set at 60% but was revised to 55% on December 16, 2021.

Use this calculator here to simulate your repayments depending on the different loan factors.

Back to top

Determining your eligibility for a home loan

Eligibility criteria differ for HDB loans and bank loans. Here are the requirements for each:

HDB loans eligibility

1. Citizenship: You must be a Singapore citizen.
2. Previous housing loan: You should have taken only one housing loan from HDB in the past.
3. Gross monthly household income: For families, it must not exceed S$12,000; for extended families, it must not exceed S$18,000; for singles, it must not exceed S$6,000.
4. Previous property: Your last property should not have been a private residential property.
5. Current property ownership: You must not currently own a private residential property.
6. Property sale: You should not have sold a private residential property in the last 30 months.
7. Additional property ownership: You must not own more than one market/hawker stall or commercial/industrial property. The one other property must be a business operated by you.
8. Income sources: If you own a commercial/industrial property, you must not have any other source of income.

Bank loans eligibility

1. Citizenship: Does not matter
2. Age requirement: You must be at least 21 years old.
3. Minimum income: You must have a minimum annual income of S$24,000.

What documents do you need to apply for a bank mortgage loan?

You will need the following documents:

1. Copy of NRIC
2. IRAS property summary
3. IRAS account summary
4. Last 15 months CPF contribution history
5. Last two years of Notice of Assessment (NOA)
6. Last three months’ payslips
7. HDB “Financial Information” Details
8. Option-to-purchase (OTP)
9. Valuation Report (For HDB properties only)
10. Latest credit facilities statements (including existing credit cards, car and personal loans)
11. Credit report from the Credit Bureau that will be obtained by the banks
    Latest outstanding Home Loan Statement from current Financier / HDB
12. CPF Property Withdrawal Statement
13. Bank loan application form

Mortgage providers we work source from

• CIMB
• Citibank
• DBS bank
• Hong Leong Finance
• HSBC
• Maybank
• OCBC
• RHB
• Standard Chartered
• UOB

Back to top