Housing Loan Information
Understand your housing loan options, eligibility criteria, and get a personalized estimate for your UPPERHOUSE @ Orchard Boulevard purchase.
Loan-to-Value Limits
When purchasing a private residential property in Singapore, the amount you can borrow is governed by Loan-to-Value (LTV) limits set by the Monetary Authority of Singapore (MAS). These limits determine the maximum loan amount as a percentage of the property's purchase price or market value, whichever is lower.
| Loan Category | LTV Limit | Min. Cash Down Payment | Example (S$3M Unit) |
|---|---|---|---|
First Housing Loan For borrowers with no outstanding housing loans | 75% | 5% | Max Loan: S$2.25M Min Cash: S$150K CPF/Cash: S$600K |
Second Housing Loan For borrowers with one outstanding housing loan | 45% | 25% | Max Loan: S$1.35M Min Cash: S$750K CPF/Cash: S$900K |
Third or More Housing Loan For borrowers with two or more outstanding housing loans | 35% | 25% | Max Loan: S$1.05M Min Cash: S$750K CPF/Cash: S$1.2M |
Total Debt Servicing Ratio (TDSR)
The Total Debt Servicing Ratio (TDSR) framework ensures that borrowers do not over-extend themselves financially. Under this framework, the total monthly debt obligations of a borrower should not exceed 55% of their gross monthly income.
TDSR Calculation
TDSR is calculated using the formula:
The result should not exceed 55% for borrowers to qualify for a housing loan.
What is Included in TDSR?
- •Housing loans (including the one being applied for)
- •Car loans
- •Personal loans
- •Credit card debts
- •Student loans
- •Any other outstanding debt obligations
Important TDSR Notes:
- For property loans, a stress test interest rate of 4% (for residential properties) is applied in TDSR calculations, regardless of the actual interest rate offered.
- All variable income (bonuses, commissions) is treated at 70% of its value for prudent assessment.
- For joint borrowers, the combined income and debt obligations of all borrowers are considered.
- TDSR does not apply to mortgage equity withdrawal loans with loan-to-value ratios of 50% or less.