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.

MAS / HDB Loan Rules — current as at August 2024

TDSR (Total Debt Servicing Ratio)55% of gross income

MSR (Mortgage Servicing Ratio) — HDB & EC only30% of gross income

LTV — HDB concessionary loan (1st property)75% (tightened Aug 2024)

LTV — bank loan, 1st residential property75%

LTV — bank loan, 2nd property (with outstanding loan)45%

HDB concessionary loan rate2.6% p.a. (fixed)

Max loan tenure — HDB flat or private property30 years

Current 3M compounded SORA1.1300% (Q1 2026)

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.

7. Frequently asked questions

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

Loan amount	Float (2.13%)	HDB loan (2.6%)	Stress (5.1%)
S$300,000	S$1,291/mo	S$1,361/mo	S$1,777/mo
S$500,000	S$2,151/mo	S$2,268/mo	S$2,961/mo
S$750,000	S$3,227/mo	S$3,403/mo	S$4,441/mo
S$1,000,000	S$4,302/mo	S$4,537/mo	S$5,922/mo
S$1,500,000	S$6,453/mo	S$6,805/mo	S$8,883/mo

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)	~2.13% 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

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.

Singapore Home Loan Guide 2026: SORA, TDSR and HDB vs Bank Loan Explained

1. The loan rules at a glance

2. TDSR and MSR — understanding the income test

TDSR: the ceiling on all your debt

MSR: the stricter test for HDB and EC

3. Monthly repayments at current rates

4. Floating vs fixed: how to choose

5. HDB loan vs bank loan: the decision framework

6. Twelve questions to ask your banker

7. Frequently asked questions

Find a CEA-verified agent who can coordinate your loan and purchase

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