Summary
How much you can borrow for a home in Singapore in 2026 is set by four rules: a total debt servicing ratio (TDSR) cap of 55% of gross monthly income, a mortgage servicing ratio (MSR) of 30% for HDB flats and executive condominiums (ECs), a loan-to-value (LTV) limit of 75% for a first housing loan, and a stress-test interest rate of at least 4% a year, according to the Monetary Authority of Singapore (MAS) and HDB.
The most recent change came on 20 Aug 2024, when the LTV limit for HDB housing loans fell from 80% to 75%, according to the Ministry of National Development (MND). That brought HDB loans in line with bank loans, which stayed at 75%.
For HDB loans, HDB computes the eligible loan using an interest rate floor of 3.0% a year, its "Credit to finance a flat purchase" page says. The actual HDB loan rate is 2.6% a year, CPF Board said on 12 Jun 2026.
What this means for Singapore buyers
How much can you borrow for a home in Singapore in 2026?
Your loan is the lowest of three numbers: what the TDSR (or MSR) allows at the stress-test rate, what the LTV cap allows on the price or valuation, and what the tenure rules allow.
| Rule | Bank loan | HDB loan | Source |
|---|---|---|---|
| TDSR cap | 55% of gross monthly income | Not applicable | MAS; HDB |
| MSR cap (HDB flats; ECs bought from developers) | 30% of gross monthly income | 30% of gross monthly income | MAS; HDB |
| Stress-test rate | Higher of 4% p.a. or the "thereafter" rate | Higher of 3.0% p.a. or the HDB loan rate | MAS; HDB |
| LTV, first housing loan | 75% (or 55%) | 75% | MAS; HDB |
| Minimum cash downpayment | 5% (10% at 55% LTV) | None if CPF OA and loan cover all payments | MAS; HDB |
| Maximum tenure | 30 years (HDB flats); 35 years (private) | Shortest of 25 years, 65 minus average age, or remaining lease minus 20 years | MAS; HDB |
What is TDSR and how is it calculated?
MAS defines TDSR as total monthly debt obligations divided by gross monthly income. Where a borrower's TDSR exceeds 55%, the loan amount has to be reduced, MAS said.
Lenders must compute the property loan instalment at the higher of a 4% floor or the "thereafter" interest rate for residential property, and 5% for non-residential property, MAS's TDSR page said. They must also apply a haircut of at least 30% to variable income such as bonuses, commission and allowances, and to rental income.
In a joint release on 29 Sep 2022, MAS, MND and HDB said MAS would raise the medium-term interest rate floor used for TDSR and MSR by 0.5 percentage point. The same release introduced HDB's 3% floor and cut the HDB loan LTV from 85% to 80%.
What is MSR and who does it apply to?
MSR caps the monthly loan repayments for an HDB flat or EC at 30% of gross monthly income, MAS says. HDB said the 30% cap applies whether the flat loan comes from HDB or a bank. A bank loan for an HDB flat must also pass the 55% TDSR.
How LTV, tenure and cash rules interact
MAS's LTV table, for options to purchase granted from 6 Jul 2018, sets these limits for individual borrowers:
| Outstanding housing loans | LTV limit | Minimum cash downpayment |
|---|---|---|
| None | 75% or 55% | 5% or 10% |
| One | 45% or 25% | 25% |
| Two or more | 35% or 15% | 25% |
The lower limit applies if the tenure exceeds 30 years (25 years for HDB flats) or runs past age 65, MAS said. Loans to companies and other non-individuals are capped at 15% LTV.
For a new HDB flat, HDB's Agreement for Lease page sets the downpayment. With an HDB loan at the 75% LTV limit, you pay a 10% downpayment when you sign the Agreement for Lease, from CPF OA savings, cash or both, and the balance when you collect the keys. With a bank loan, the downpayment is 20% (at least 5% in cash, the rest from cash and/or CPF OA).
Worked example (illustration only)
Assume a couple, both aged 35, earning a combined fixed salary of S$12,000 a month, with no car loan, card balances or other debts. All figures are ProprKey calculations using the official ratios and floors above, with standard amortisation.
Private condo, bank loan, 30 years. The TDSR allows S$6,600 a month (55%). Stress-tested at 4% over 30 years, that supports a loan of about S$1.38 million. At 75% LTV, the matching price is about S$1.84 million, with a downpayment of about S$461,000, of which at least about S$92,000 must be cash.
HDB resale flat, bank loan, 25 years. The MSR allows S$3,600 a month (30%). A 25-year tenure keeps the 75% LTV. At 4%, the loan is about S$682,000, matching a flat price or valuation of about S$909,000.
HDB resale flat, HDB loan, 25 years. The same S$3,600 at HDB's 3% floor supports about S$759,000, matching about S$1.01 million. The actual instalment at 2.6% would be about S$3,444 a month, below the cap. The remaining S$253,000 or so not covered by the loan can come from CPF OA, cash or both.
Three points follow. The stress test, not today's rate, sets the ceiling, so lower market rates do not raise your limit. The MSR, not the TDSR, binds for HDB flats. Any existing debt or bonus income cuts the figures, because both count against TDSR and bonuses face the 30% haircut.
FAQ
Did the HDB loan LTV change recently? Yes. It fell from 80% to 75% for resale applications received from 20 Aug 2024 and for BTO applications from the October 2024 exercise, MND said.
Do I need cash for an HDB loan? HDB said there is no minimum cash payment if your CPF OA savings and housing loan cover all payments. Bank loans need at least 5% in cash.
What rate do banks use to test my loan? MAS requires the higher of 4% a year or the "thereafter" rate for residential property loans.
Education only — not tax, legal or investment advice. Confirm with a licensed professional.
What to do next
- Request an HDB Flat Eligibility (HFE) letter before house-hunting; HDB said it states the housing loan you may be eligible for.
- List every monthly debt and separate fixed salary from bonus, then rerun the TDSR and MSR at 4% (or 3% for HDB loans).
- Keep cash for the 5% minimum downpayment on any bank loan, plus valuation gaps on resale flats.
- Speak with a mortgage adviser or lawyer through verified Pros: https://proprkey.com/en/pros?segment=legalFinance
- Compare prices against your limit on listings (https://proprkey.com/en/properties?segment=buyer&mode=buy) and new launches (https://proprkey.com/en/new-developments).