When it comes to getting a home loan in Singapore, there are two types of loans. One is a mortgage which can be used for down payments and monthly repayments. The other is a home loan which can be used for large purchases like cars, furniture, and boats. The eligibility criteria for both types of loans are something you need to know before applying. Knowing if you are eligible will help reduce the chances of getting rejected when you apply. The following are factors that will determine your eligibility for a home loan in Singapore:

1. Your Income

Your income is very important in determining whether you are eligible for a home loan in Singapore. You must ensure that your income is above the median income for that year to have enough money to pay for your monthly repayments. The median income for the preceding year should be used when determining if you are eligible. However, if your loan falls under the HDB concessionary loans, you may not need to meet this standard as stated by the HDB website.

2. Your Credit Score

The higher the credit score, the fewer chances of you being rejected. You must get a credit bureau score to apply for a bank home loan in Singapore. You can get one by using it for a credit card, ask your employer to obtain it, or you may also be able to find one from the business counselling centre at your financial institute. Once you have your credit score, compare it to the median income and ensure that you are above them.

3. Your Debt to Income Ratio

The median debt to income ratio for the preceding year should be used when determining if you are eligible. It is important to know your debt-to-income ratio because some lenders may require it when you apply for a home loan. It is always better if you have less than the median, but it depends on your financial requirements and economic situation.

4. Your Savings or Investments

Your savings and investments will also be used to determine if you are eligible. You should ensure that your investments do not exceed the median income, which is why you need to keep track of your savings. It is based on your average monthly payment on expenses, whether it be money spent on food or electricity bills or how much you spend on entertainment.

5. What Kind of Property Do You Want to Buy

If you want to buy a condominium, the eligibility criteria will differ from purchasing an HDB flat (a public housing unit). Knowing your property type will determine the qualifications you need when applying for a bank or a private home loan in Singapore.

6. When Can You Buy

Once you know what kind of property you want, knowing when you can buy it is needed. Once you know when you want to buy, you must ensure that the criteria needed for that specific month are met. For example, suppose the requirement for your chosen property type is the median debt to income ratio. That month has a different median or points required than what was listed for earlier months. In that case, you may not be eligible because of it.


The factors listed above are factors that will determine whether or not you are eligible for a bank home loan in Singapore. You can get started today by finding out what kind of property you want and knowing your income, debt-to-income ratio, savings or investments, and when you can buy. Then, you can apply for a home loan and connect with the best financial institutions in Singapore.


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