Complete Mortgage Guide — Singapore

How Mortgages Work in Singapore

The MAS uses the exchange rate rather than interest rates as its primary monetary policy tool, meaning Singapore’s rates are influenced by global capital flows and US rates. Bank mortgage rates are benchmarked to SORA (Singapore Overnight Rate Average, which replaced SOR and SIBOR). HDB concessionary loan rates are pegged at 0.1% above the CPF Ordinary Account interest rate (currently 2.6%)

Use our mortgage calculator to see how different rates and terms affect your monthly repayments.

Types of Mortgages Available

Singapore offers bank loans (floating rate linked to SORA, fixed-rate packages for 2-5 years, or board rate) and HDB concessionary loans (fixed at CPF OA rate + 0.1%, currently 2.6%). The most popular bank products are fixed-rate packages locked for 2-3 years, then reverting to a SORA-based floating rate. HDB loans offer stability but at slightly higher rates than the best bank packages — the trade-off is flexibility (no lock-in, penalty-free prepayment, and the ability to use full CPF for payments)

Read our mortgage types comparison for a detailed side-by-side analysis of each product.

How Much Can You Borrow?

The TDSR framework limits total monthly debt obligations (all loans including car, personal, credit card minimum payments, and the proposed mortgage) to 55% of gross monthly income. For HDB purchases, an additional MSR limit of 30% applies to the housing loan specifically. Banks stress test at a medium-term rate of 4% (or the actual rate, whichever is higher). CPF contributions can be used for monthly payments, reducing cash flow impact

The maximum loan-to-value in Singapore is 75% for first property with bank loan (65% if tenure exceeds 30 years or extends past age 65). 45% for second property, 35% for third. HDB concessionary loans offer up to 80% LTV. The Mortgage Servicing Ratio (MSR) for HDB purchases caps housing loan payments at 30% of gross monthly income. TDSR (Total Debt Servicing Ratio) caps total debt payments at 55% of gross monthly income for all property types. Loan terms extend up to Maximum 30 years for bank loans, 25 years for HDB loans. The loan tenure plus borrower’s age cannot exceed 65 for HDB loans or a bank-specific limit (typically 65-75). For properties older than 40 years, the maximum tenure may be reduced so that the loan does not extend beyond the lease end.

The Application Process

For HDB: apply through the HDB portal during BTO or resale flat application. For bank loans: get an In-Principle Approval (IPA) before committing to a purchase. Provide NRIC, latest 3 months payslips, latest Notice of Assessment (NOA) from IRAS, CPF statements, and bank statements. The bank conducts a property valuation. IPA is typically issued within days. A conveyancing lawyer handles the mortgage documentation at completion. For HDB, the HDB Financial Plan assesses your eligibility and maximum loan amount

Costs and Fees

Buyer’s Stamp Duty (BSD) of 1-6% (on the property, not the loan). No specific loan stamp duty. Legal fees for the mortgage of $1,500-3,000. Bank loans may have lock-in periods of 2-3 years with early repayment penalties of 1.5% of the amount repaid. HDB loans have no lock-in and no early repayment penalty. Mortgage insurance (MRTA or decreasing term insurance) is not mandatory but recommended

What Makes Singapore’s Mortgage Market Unique

Singapore’s CPF (Central Provident Fund) system is deeply integrated with property financing. Both the Ordinary Account (OA) savings and monthly contributions can be used for deposit, stamp duty, and monthly mortgage payments. This means many Singaporeans can service their mortgage entirely from CPF without any cash outlay. However, amounts withdrawn from CPF must be refunded with accrued interest (2.5%) when the property is sold, which reduces net sale proceeds

Refinancing Your Mortgage

Refinancing between banks is common after the lock-in period expires (typically every 2-3 years). Many borrowers systematically refinance at each lock-in expiry to secure the latest promotional rates. Banks offer attractive refinancing packages to win business. The process takes 2-3 months and involves legal fees of $2,000-3,000. For HDB borrowers switching from HDB to bank loans, consider that you lose the benefits of penalty-free prepayment and the guaranteed CPF+0.1% rate. You cannot switch back from bank to HDB loan once converted

Read our refinancing guide for a step-by-step walkthrough.

Government Schemes and Support

CPF Housing Grants provide up to $80,000 for eligible first-time buyers of HDB resale flats. The Enhanced CPF Housing Grant (EHG) provides up to $80,000 based on household income. The Step-Up CPF Housing Grant provides $15,000 for second-timer families. BTO (Build-To-Order) flats are heavily subsidised new HDB flats balloted at below market value. CPF OA savings and contributions can be used for deposit and monthly payments. The Proximity Housing Grant provides $20,000 for living near parents

Check our government grants guide for the latest programmes and eligibility details.

Tips for Getting the Best Deal

For HDB buyers: compare HDB loan (2.6% fixed, no lock-in, full CPF usage) versus bank loan (lower initial rate but with lock-in and rate risk). CPF refund with accrued interest (2.5%) is a hidden cost of using CPF — calculate your total CPF exposure carefully. Refinance bank loans every 2-3 years when the lock-in expires — this is standard practice in Singapore and can save significant money. Use the TDSR calculation to understand your maximum borrowing capacity before house hunting

Next Steps

Use our mortgage calculator to model different scenarios, read our property buying guide for the full purchase process, or browse Singapore FAQs for quick answers.