A mortgage — usually called a home loan in Singapore — is money borrowed from HDB or a bank to buy a property, with the property pledged as collateral and the debt repaid in monthly instalments of principal and interest.
Key takeaways
- The property is used as collateral, the loan is disbursed after the downpayment is paid, and interest is charged from the first disbursement.
- An HDB concessionary loan can cover up to 75% of the purchase price or valuation, whichever is lower — lowered from 80% with effect from 20 August 2024; a bank loan is capped at 75% where the borrower has no other outstanding housing loan.
- The HDB concessionary rate is pegged at 0.1% above the prevailing CPF Ordinary Account rate and reviewed quarterly — 2.6% p.a. for the quarter from 1 July 2026.
- Bank home loans are assessed against a Total Debt Servicing Ratio of 55%, and HDB flats and Executive Condominiums against a Mortgage Servicing Ratio of 30%.
- Before a bank home loan is signed the bank issues a property loan fact sheet setting out the tenure, lock-in period, effective interest rate and penalty fees.
How a Singapore mortgage works
Each monthly instalment is part principal repayment and part interest. The size of the instalment depends on the amount borrowed, the loan tenure, the interest rate and how interest is computed — home loans normally use monthly rest, where interest is charged on the reducing outstanding balance. The lender holds a first charge over the property, and where CPF savings were used for the downpayment or the instalments, the CPF Board holds a second charge.
HDB loan and bank loan compared
- Loan-to-Value limit — up to 75% on an HDB concessionary loan and up to 75% on a bank loan
- Downpayment — at least 25% on an HDB loan, payable with CPF Ordinary Account savings, cash or both; on a bank loan it is 25%, of which 5% has to be cash at the 75% LTV limit
- Interest rate — HDB is pegged at 0.1% above the prevailing CPF rate and reviewed quarterly; a bank loan can be fixed or floating
- Maximum loan period — up to 25 years with HDB, up to 30 years for an HDB flat and 35 years for private property with a bank
- Switching — an HDB loan can be switched to a bank loan, but a bank loan cannot be switched back to an HDB loan
How much can be borrowed
Lenders apply three tests. The Mortgage Servicing Ratio caps the monthly instalment on an HDB flat or an Executive Condominium at 30% of gross monthly income. The Total Debt Servicing Ratio caps all monthly debt repayments taken together at 55% of gross monthly income. The Loan-to-Value limit caps the loan against the property value, and steps down where the borrower already has one or more outstanding housing loans.
Key Singapore mortgage figures
| Item | Figure |
|---|---|
| LTV limit — HDB concessionary loan | up to 75% |
| LTV limit — bank loan, no other housing loan | up to 75% |
| Mortgage Servicing Ratio — HDB flats and ECs | 30% of gross monthly income |
| Total Debt Servicing Ratio — bank loans | 55% of gross monthly income |
| HDB concessionary rate (1 Jul – 30 Sep 2026) | 2.6% p.a. |
Figures as at 2026. Source: MoneySense.
Worked example
On a SGD 600,000 home loan repaid over 20 years at a fixed 3.5% p.a. on monthly rest, the 240 equal monthly repayments work out to SGD 3,480, or SGD 41,757 a year. In year one about SGD 1,750 of each repayment is interest and about SGD 1,730 is principal, and the interest share falls as the balance is paid down.
Related terms
All Singapore glossary terms →Related calculator
Estimate monthly repayments on a Singapore home loan from the amount borrowed, the rate and the tenure.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to MoneySense and the CPF Board and seek independent professional advice before making any financial decisions.