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The Total Debt Servicing Ratio (TDSR) is a critical regulation in Singapore’s housing loan market, ensuring borrowers do not take on excessive debt relative to their income. Implemented by the Monetary Authority of Singapore (MAS) in 2013, the TDSR applies to all financial institutions (FIs) and restricts the percentage of a borrower’s gross monthly income that can go toward repaying debts, including home loans. Current TDSR Limits (2025 Update) & Loan Eligibility As of 2025, the  TDSR cap remains at 55% , meaning that the total monthly debt repayments—including mortgages, car loans, credit card debts, personal loans, and student loans—cannot exceed 55% of a borrower’s gross income. For example, if an individual earns $6,000 per month, their total monthly debt commitments must not exceed $3,300. If they already have a car loan of $1,000 per month, the maximum allowable mortgage repayment would be $2,300. The TDSR stress test interest rate was revised from 3.5% to 4% or the ther...

Buying a property in Singapore requires a large down payment. The amount depends on factors like   property type, loan eligibility, and   how you finance it. Understanding the different downpayment structures can help homebuyers plan their finances effectively. 1. Property Downpayment (HDB Flats) (a) New HDB BTO or SBF Flats When you buy a  Build-to-Order (BTO)  or  Sale of Balance Flats (SBF)  from the Housing & Development Board (HDB), the downpayment varies. It depends on whether you choose an  HDB loan  or a  bank loan . Loan Type Maximum Loan-to-Value (LTV) Ratio Downpayment Requirement Mode of Payment HDB Loan Up to 75% financing 25% of Purchase price Fully payable using CPF OA (Cash optional) Bank Loan Up to 75% financing 5% in cash + 20% in CPF OA or cash Cash & CPF OA HDB loans require a lower cash outlay , making them more accessible to first-time buyers. Bank loans require at least 5% cash , which may be challenging for buy...

Mortgage insurance is a crucial financial safeguard for homeowners in Singapore. However, its necessity depends on the type of home loan and property you purchase. This guide explains what mortgage insurance is, when it is mandatory, and how it works. 1. What is Mortgage Insurance? Mortgage insurance is a policy that ensures the outstanding home loan is repaid in case of the borrower’s death, total permanent disability (TPD), or terminal illness. This prevents surviving family members from being burdened with mortgage repayments should an unfortunate event occur. 2. Is Mortgage Insurance Compulsory in Singapore? The requirement for mortgage insurance depends on the type of loan and property: (A) HDB Home Loan / HDB Bank Loan – Compulsory Under Home Protection Scheme (HPS) If you use CPF to pay your HDB home loan, you must be covered under the Home Protection Scheme (HPS). HPS is a mortgage-reducing insurance scheme administered by CPF Board to ensure the mortgage is fully or partially ...

Using a mortgage broker in Singapore offers several advantages, especially if you’re navigating the often complex world of home loans. Here’s a breakdown of the key benefits: 1. Access to Multiple Loan Options Mortgage brokers work with multiple banks and financial institutions, giving you access to a wide range of loan packages. Instead of approaching banks individually, a broker consolidates the options for you, saving time and effort. 2. Expertise and Market Knowledge Brokers are well-versed in the Singapore home loan market, including trends, regulations, and bank policies. They can guide you in choosing between  fixed   or   floating interest rates , tenure options, and special promotional packages. 3. Customized Recommendations Brokers evaluate your financial situation, long-term goals, and property details to recommend tailored solutions. They help identify loan packages that align with your needs, such as lower monthly payments, shorter tenures, or specific eligib...