Singapore Home Loan Guide 2026: SORA, TDSR and HDB vs Bank Loan Explained
The MAS loan rules every Singapore property buyer must understand — TDSR, MSR, LTV, HDB vs bank loan — explained clearly, with a live repayment table using current SORA rates. Rules current as at August 2024 (latest MAS update).
1. The loan rules at a glance
MAS sets the framework; HDB adds additional restrictions for its concessionary loan. These numbers are hard constraints — banks and HDB must apply them.
Source: MAS Property Loan Rules; HDB. The HDB LTV was reduced from 80% to 75% in August 2024 as part of property market cooling measures. SORA is fetched live from PropKaki Intelligence.
2. TDSR and MSR — understanding the income test
TDSR: the ceiling on all your debt
TDSR caps all your monthly debt repayments — home loan + car loan + credit card minimum + any other loans — at 55% of gross monthly income. Banks also apply a stress-rate test: they assess your TDSR not at today's rate, but at today's rate plus 3 percentage points. At current SORA of 1.06%, the floating stress rate is 5.06%.
Example: gross monthly income S$10,000. TDSR allows up to S$5,500 in total monthly debt. If you have a S$1,000 car loan, your home loan repayment under TDSR is capped at S$4,500/month. The bank assesses this at the stress rate — meaning the loan is sized so the stressed repayment (at 5.1%) stays at or below S$4,500, not the today rate.
MSR: the stricter test for HDB and EC
For HDB flats and EC units, MSR adds a second constraint: the home loan repayment for that property alone cannot exceed 30% of gross monthly income. For a household earning S$10,000/month, the maximum HDB loan repayment is S$3,000/month — regardless of TDSR headroom.
MSR is the binding constraint for most HDB buyers — it is more restrictive than TDSR. A buyer with no other debt can service S$5,500/month under TDSR but only S$3,000 under MSR. The MSR limit determines maximum loan size for HDB flat purchases.
| Monthly income | MSR ceiling (HDB / EC) | TDSR ceiling (all debt) | Max HDB loan (25yr, 2.6%) |
|---|---|---|---|
| S$6,000 | S$1,800/mo | S$3,300/mo | ~S$397,000 |
| S$8,000 | S$2,400/mo | S$4,400/mo | ~S$529,000 |
| S$10,000 | S$3,000/mo | S$5,500/mo | ~S$661,000 |
| S$12,000 | S$3,600/mo | S$6,600/mo | ~S$794,000 |
| S$15,000 | S$4,500/mo | S$8,250/mo | ~S$992,000 |
| S$20,000 | S$6,000/mo | S$11,000/mo | ~S$1,323,000 |
Max HDB loan is computed at the HDB concessionary rate (2.6%) over 25 years, bounded by the MSR ceiling. Actual loan eligibility depends on income verification, credit history, existing debts, and CPF balance.
PropKaki Affordability Index™ — 2025
4.4 years of gross household income
The median 4-room HDB resale flat cost 4.4 years of median gross household income in 2025 — down from the 2022 peak of 4.9 years.
Source: PropKaki Affordability Index™ — from HDB/SingStat
→ Full tracker3. Monthly repayments at current rates
Repayment at three reference rates: floating bank rate (SORA 1.06% + 1% spread = 2.06%), HDB concessionary rate (2.6%), and stress-test rate (5.1%, which is floating + 3pp). 25-year tenure throughout.
| Loan amount | Float (2.06%) | HDB loan (2.6%) | Stress (5.1%) |
|---|---|---|---|
| S$300,000 | S$1,280/mo | S$1,361/mo | S$1,764/mo |
| S$500,000 | S$2,134/mo | S$2,268/mo | S$2,940/mo |
| S$750,000 | S$3,201/mo | S$3,403/mo | S$4,411/mo |
| S$1,000,000 | S$4,268/mo | S$4,537/mo | S$5,881/mo |
| S$1,500,000 | S$6,402/mo | S$6,805/mo | S$8,821/mo |
Monthly repayment on a 25-year level-payment mortgage. Floating rate uses live SORA (1.0600% as at Q2 2026) + 1% bank spread. Stress rate is floating + 3pp, representing a rate shock scenario. Figures are indicative; actual loan terms depend on your bank, credit profile and loan tenor negotiated.
Track SORA history from 2005, fixed deposit mortgage rate history, and SORA vs SIBOR comparison: Cost of Money Tracker
4. Floating vs fixed: how to choose
| Feature | Floating rate (SORA-pegged) | Fixed rate |
|---|---|---|
| Rate benchmark | 3M compounded SORA + bank spread | Fixed for 2–3 year lock-in period, then reverts to floating |
| Current indicative rate (mid-2026) | ~2.06% all-in | ~2.50–2.90% for 2yr fixed (indicative) |
| Rate movement risk | Moves with global interest cycles; fell from 4.7%+ in 2023 to ~2.1% today | Locked for the fixed period; reverts to floating after expiry |
| Prepayment during lock-in | Usually free or low penalty | Penalty (typically 1.5% of outstanding amount) applies during fixed period |
| Best for | Buyers comfortable with rate variability; those who may refinance in 2–3 years | Buyers who need payment certainty; those expecting SORA to rise significantly |
Fixed rate packages in Singapore fix the rate for 2–3 years only, then revert to a floating package. "Fixed" does not mean fixed for the entire loan tenure. Refinancing at the end of a fixed period is normal — budget for legal fees (~S$1,500–3,000) or check if your bank offers a free repricing package.
5. HDB loan vs bank loan: the decision framework
Take the HDB concessionary loan if…
You have limited cash savings and need to maximise CPF usage for the down payment (HDB LTV 75% means 25% down, which can be mostly CPF + 5% cash). Or you want rate certainty for the long term — HDB's 2.6% rate is pegged to CPF OA rate and changes rarely. Or you're uncertain about income stability and want to avoid the refinancing complexity of bank loans. Note: once you switch from HDB loan to bank loan, you cannot switch back.
Take a bank loan if…
SORA is significantly lower than HDB's 2.6% rate (it currently is — floating is ~2.06%). You have sufficient cash and CPF for the 25% down payment (minimum 5% cash). You're comfortable monitoring rates and refinancing every 2–3 years when lock-in periods expire. You want the flexibility of larger loan amounts for higher-value properties (where HDB loan eligibility caps may not apply). Bank loans also work for private property and EC purchases where HDB loans are not available.
Key eligibility differences
HDB concessionary loan eligibility requires: at least one buyer is a Singapore citizen, household income ≤S$14,000/month (or S$21,000 for extended families), you do not own or have disposed of private property in the 30 months prior to application, and you have not taken two or more previous HDB loans. These conditions do not apply to bank loans.
6. Twelve questions to ask your banker
Before committing to a loan package, get written answers to these from every bank you approach. Rates are only one variable.
1. What is the all-in rate for the first two years — SORA rate + spread, written down?
2. What is the revision rate after the fixed/lock-in period ends?
3. Is there a lock-in period, and what is the prepayment penalty (% of outstanding)?
4. Can I make partial prepayments without penalty? What is the minimum?
5. Is free repricing available at the end of the lock-in, or must I refinance externally?
6. What are the legal and valuation fees — do you have a legal panel with free conveyancing?
7. What income documents are required for this loan application?
8. Is my current TDSR and MSR headroom sufficient for this loan amount at the stress rate?
9. What is the maximum tenure you will approve given my age and the property's remaining lease?
10. Can I service the loan partially via CPF OA, and what is the monthly CPF vs cash split?
11. What happens to my rate if SORA moves significantly — do you have a rate cap or floor?
12. How long does the Approval in Principle (AIP) remain valid?
7. Frequently asked questions
What is TDSR in Singapore and how does it affect my home loan?
TDSR stands for Total Debt Servicing Ratio. MAS requires that all monthly debt obligations — including the new home loan, car loans, student loans, credit card minimums — must not exceed 55% of the borrower's gross monthly income. If your combined monthly debt exceeds 55% of your income, the bank must reduce the loan amount until it falls within the limit. TDSR applies to all private property loans and HDB flat bank loans. HDB concessionary loans are also subject to a similar assessment.
What is MSR and when does it apply?
MSR stands for Mortgage Servicing Ratio. It applies only to HDB flats and Executive Condominiums (ECs) purchased directly from HDB or a developer. MSR limits the monthly home loan repayment — for that specific property alone — to 30% of gross monthly income. This is stricter than TDSR (55%) because it applies to a single loan rather than all debt combined. For private condominiums and landed property, MSR does not apply — only TDSR.
Should I take an HDB loan or a bank loan for my HDB flat?
An HDB concessionary loan offers rate certainty (currently 2.6%, pegged at CPF OA rate + 0.1%), a higher LTV of 75%, and lower cash down payment requirements. A bank loan currently offers lower all-in floating rates (SORA + ~1% spread ≈ 2.1% as at mid-2026) but requires a minimum 25% down payment, of which 5% must be cash. The HDB loan is more appropriate if you have limited cash savings and value rate certainty. The bank loan is cheaper right now but exposes you to rate movement risk. You can only refinance from HDB loan to bank loan once — not back.
What is the current SORA rate and how does it affect my mortgage?
The 3-month compounded SORA is published daily by MAS. As at June 2026 it is approximately 1.08%. Floating-rate bank home loans are priced as SORA plus a bank spread (typically 0.8–1.2%), giving an all-in rate of approximately 1.9–2.3%. PropKaki tracks the full SORA history at propkaki.sg/market/cost-of-money. SORA moves with global interest rate cycles — at its 2023 peak it exceeded 3.7%.
How much CPF can I use for my home loan?
You can use CPF Ordinary Account (OA) savings to pay the down payment and monthly home loan instalments, subject to two limits: (1) the Valuation Limit (VL) — the lower of the purchase price or property valuation, and (2) the Withdrawal Limit (WL) — 120% of the VL for properties with sufficient remaining lease. For HDB flats, CPF usage is also restricted based on remaining lease relative to the youngest buyer's age: full usage is allowed only if remaining lease covers the youngest buyer to at least age 95. CPF OA savings cannot be used for ABSD payments, stamp duty, legal fees, or agent commissions.
What is the Loan-to-Value (LTV) limit for Singapore home loans?
The LTV limit sets the maximum loan amount as a proportion of the property's value. For a first residential property: HDB concessionary loan LTV is 75% (tightened August 2024, from 80%); bank loan LTV is also 75%. For a second residential property with an outstanding loan: bank LTV drops to 45%. The remaining purchase price must be funded by cash and CPF. The 5% minimum cash requirement applies when bank LTV exceeds 75% — at 75% LTV, the remaining 25% down payment can be a mix of CPF and cash with at least 5% cash.
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This guide is prepared by Straits Intelligence Pte. Ltd. for informational purposes only and does not constitute financial or mortgage advice. TDSR, MSR, and LTV rules are governed by MAS Notice 632 (banks) and HDB's financial eligibility criteria, which are subject to change. Verify current rules at mas.gov.sg and hdb.gov.sg. Repayment figures are indicative; consult a licensed mortgage broker for personalised advice.
Published: June 2026 · Updated with live SORA · About propkaki.sg