Question 1

What is a good TDSR ratio for a Singapore home loan?

Accepted Answer

MAS caps TDSR at 55%, but a comfortable TDSR is generally considered to be below 35–40%. If your TDSR is between 40–55% you can still qualify for a loan, but your monthly cash flow will be tighter and you have less buffer if interest rates rise or your income drops. A TDSR under 30% gives you significant flexibility to invest, save, and absorb life events without financial stress.

Question 2

Does the 55% TDSR limit include all my debts or just my home loan?

Accepted Answer

TDSR includes all monthly debt obligations: your proposed home loan instalment, car loans, personal loans, student loans, and the minimum monthly repayment on outstanding credit card balances. All these are added up and divided by your gross monthly income. If the total exceeds 55%, Singapore banks cannot approve the home loan at that quantum.

Question 3

How much can I borrow for an HDB flat in Singapore on a $8,000 monthly salary?

Accepted Answer

With a $8,000 gross monthly income and no other debts, your MSR cap is $2,400/month (30% × $8,000). At 2.6% HDB loan rate over 25 years, that monthly instalment supports a loan of approximately $500,000–$520,000. If you use a bank loan at 3.0%, the same instalment cap supports roughly $490,000–$505,000. Your actual eligible loan may vary based on property valuation, CPF balance, and the specific bank's assessment.

Question 4

Is an HDB loan or bank loan better in Singapore in 2026?

Accepted Answer

In 2026, HDB loans remain attractive for their stability at 2.6% (fixed to CPF OA rate), zero early repayment penalty, lower cash down payment (10% vs 25% for bank loans), and no lock-in period. Bank loans may offer lower rates on 2–3 year fixed packages if promotional rates dip below 2.6%, and offer higher LTV flexibility for some buyers. If you value certainty and have limited cash savings, the HDB loan is generally the safer choice for BTO and resale HDB buyers.

Question 5

Can I use CPF to pay my monthly home loan instalment in Singapore?

Accepted Answer

Yes. Your CPF Ordinary Account (OA) savings can be used to service the monthly instalment for both HDB loans and approved bank loans for residential property in Singapore. However, any CPF OA used for housing accrues an interest rate of 2.5% p.a. that must be refunded to your CPF account (not the bank) when you sell the property. This accrued interest reduces your net sale proceeds, so some borrowers prefer to service the mortgage with cash and preserve CPF OA for retirement or investment via CPFIS.

Question 6

What interest rate should I use in the Singapore home loan calculator?

Accepted Answer

For conservative planning in 2026, use 3.5–4.0% to stress-test your affordability, even if current promotional rates are lower. Most Singapore financial advisers recommend checking affordability at 4–4.5% (the MAS TDSR stress-test rate used by banks) to ensure you can still comfortably service the loan if rates rise. For day-to-day comparison of actual bank packages, check live rates on the bank websites or use a mortgage broker aggregator for current offers.

Question 7

What is the maximum home loan tenure in Singapore?

Accepted Answer

For private property and EC purchases financed by bank loans, the maximum tenure is 30 years. For HDB flat purchases, the maximum tenure is 25 years for HDB loans and 30 years for bank loans, subject to age restrictions — the loan must typically be fully repaid before the borrower turns 65 (for HDB loan) or before the property's remaining lease drops below a MAS-set minimum. Extending the tenure reduces your monthly instalment but significantly increases total interest paid over the life of the loan.

Question 8

Does MSR apply to private properties in Singapore?

Accepted Answer

No. The 30% Mortgage Servicing Ratio (MSR) cap applies only to HDB flats and executive condominiums (ECs) during the MOP period when financed by an HDB loan or bank loan. For private apartments, landed property, and commercial property, only the 55% TDSR framework applies. If you are buying an EC after the 5-year MOP and selling it in the open market, the MSR no longer applies to the new buyer.

Question 9

How does my home loan affect my retirement planning in Singapore?

Accepted Answer

A large home loan can significantly crowd out retirement savings. For every dollar directed to servicing a mortgage, there is one less dollar available for CPF top-ups, SRS contributions, and investment portfolio building. A useful rule of thumb: ensure your monthly instalment plus essential expenses leave at least 15–20% of net income for retirement savings. After establishing your mortgage budget with this calculator, use our Retirement Planning Calculator and SRS Tax Savings Calculator to model the full picture of your financial journey.

Home Loan Affordability Calculator Singapore 2026

Home Loan Affordability Calculator Singapore 2026

🏠 Home Loan Affordability Calculator Singapore