• Home Loan BYTES FROM OUR KITCHEN

    Home Loan Eligibility

    Buying a home is one of the dreams shared by millions of people around the globe. You can always stay in a rented accommodation or even stay as a paying guest but you will never feel the same amount of security that you can feel by staying at your own place. By becoming a homeowner you can secure your future and the future of your family as you will ensure that you and your loved ones always have a roof over your heads. If you do not have a home of your own, or if you want to purchase an additional home, you will most likely need to apply for a home loan to acquire the funds needed for purchasing the house of your choice. Before applying for a home loan, you need to first understand home loan eligibility in Singapore so that you can determine if you are eligible for the home loan products offered by various banks and financial institutions in the country.

    You can apply for a home loan in Singapore if you are at least 21 years old. Home loans are offered by various banks and financial institutions to Singapore citizens, Permanent Residents and foreigners. You can apply for a home loan for the purpose of owner-occupation or as an investment.

    Home loans are offered by banks and financial institutions in Singapore in the following ways:

    • Loans for completed properties and properties under construction.
    • Loans for properties in Singapore as well as overseas.
    • Loans for HDB flats and private properties.
    • Loans for residential and commercial properties.

    Eligibility Criteria for HDB Concessionary Home Loan

    You are eligible for an HDB Concessionary Loan if you satisfy ALL of the criteria below:

    • 1 of the home buyers must be a Singapore citizen.
    • You have not taken 2 or more home loans from the Housing and Development Board (HDB).
    • You have previously taken 1 home loan from the HDB but the property owned is not a private residential property such as:
      • A private property.
      • A property that was acquired as a gift.
      • A property owned, disposed or acquired through a nominee/s.
      • An HUDC flat.
      • A property you have inherited under the Intestate Succession Act or under a will as a beneficiary.
    • The gross monthly household income averages cannot exceed:
      • S$12,000 for families.
      • S$18,000 for extended families.
      • S$6,000 for singles who are purchasing a 2-room new flat under the SSC (Single Singapore Citizen) Scheme in a non-mature estate or a 5-room or a smaller resale flat.
      • Note: In the event that the occupier/owner has been unemployed for less than 3 months, the average household income will be calculated depending on the number of months the said person has worked.
    • You should not own or have disposed a private residential property in the past 30 months from your application date for the Home Loan Eligibility (HLE) letter. This criterion is applicable to all private residential properties irrespective of its location such as:
      • A private property.
      • A property that was acquired as a gift.
      • A property owned, disposed or acquired through a nominee/s.
      • An HUDC flat.
      • A property you have inherited under the Intestate Succession Act or under a will as a beneficiary.
    • You can buy a flat that has a remaining lease of at least 60 years. In case the HDB flat does not have a remaining lease of 60 years, your home loan quantum may either be reduced or your application may be rejected. Find below how your home loan may be affected depending on the remaining lease of the HDB flat:
      • Lease of 60 or more years – HDB Home Loan will be allowed.
      • Lease between 30 years and 59 years – Loan to be allowed if the buyer of the flat will be covered until 80 years of age ( the average age will be taken into consideration if there is more than 1 buyer) + the loan tenure to be the shortest of the following scenarios:
      • 25 years or
      • 65 years minus the buyer/s average age or
      • Remaining lease of the flat during purchase time minus 20 years.
    • Lease of below 20 years – HDB Home Loan will not be allowed.

    Eligibility Criteria According to Banks

    1. OCBC Home Loans

      Home Loan (New Purchase) eligibility criteria include:

      • HDB eligibility criteria to be met if you wish to purchase an HDB flat.
      • For a private property – Singapore citizens, Permanent Residents and foreigners are eligible to apply for this OCBC home loan.
      • Minimum loan amount:
      • HDB flat – Minimum S$100,000 up to 80% of the valuation price.
      • Private property – Minimum S$200,000 up to 80% of the valuation price.

      Home Loan (Refinancing) eligibility criteria include:

      • Minimum loan amount:
      • HDB flat – Minimum S$100,000 up to 100% valuation of your existing outstanding loan, depending on whichever of the two is lower.
      • Private property – Minimum S$200,000 up to 100% valuation of your existing outstanding loan, depending on whichever of the two is lower.

      Renovation Loan eligibility criteria include:

      • Age criteria:
        • Minimum age – 21 years.
        • Maximum age – 59 years.
      • Nationality criterion – Singapore citizens and Permanent Residents only are eligible to apply for this loan.
      • Income criteria:
        • In case of a single application, the applicant must earn at least S$24,000 p.a.
        • In case of a joint application, 1 of the applicants must earn at least S$24,000 p.a.

      Overseas Property Loan eligibility criteria include:

      • Loan amount up to 70% of the property price.
      • Loan tenure up to 30 years.
      • Minimum loan amount:
      • London – GBP200,000 or S$300,000.
      • Australia – AUD200,000 or S$300,000.
      • Malaysia – S$200,000.
      • Tokyo – JPY2 million or S$200,000.
      • New York – USD200,000 or S$300,000.

      Construction Loan eligibility criteria include:

      • Loan amount up to 80% of the cost of construction.
      • Minimum age – 21 years.
      • Nationality criteria:
      • Singapore citizens and Permanent Residents are eligible to apply for this loan.
      • Foreigners can apply for this loan only if their Land Dealings are approved.
    2. HSBC Home Loans

      Eligibility criteria for HSBC home loans include:

      • Minimum loan amount:
        • HDB flat and private property – S$200,000.
        • Commercial property – S$300,000.
      • Loan tenure (depends on the borrower’s age):
        • HDB flat (new purchase) – Maximum tenure of 30 years.
        • HDB flat (refinancing) – Loan tenure + No. of years since the first residential loan was approved cannot exceed 30 years.
        • Private property – Maximum tenure of 35 years.
        • Private property (refinancing) – Loan tenure + No. of years since the first residential loan was approved cannot exceed 35 years.
    3. Standard Chartered Home Loans

      Home Suite/HDB Home Suite Eligibility criteria include:

      • Maximum financing of up to 80%.
      • Minimum loan amount of S$100,000 for completed properties as well as properties still under construction.

      HDB Bridging Loan Eligibility criteria include:

      • Age criteria:
        • Minimum age – 21 years.
        • Maximum age – 65 years.
      • Nationality criterion – Only applicable to Singapore citizens and Permanent Residents who are selling their HDB flats or private properties.
      • Loan tenure – Up to 6 months.
      • Applicants who are purchasing another HDB flat directly from the Housing and Development Board or the HDB resale market are eligible to apply for this loan.
      • All owners of the flat to be sold should be borrowers as well.
      • First–time owners are not eligible to apply for this loan.
    4. UOB Home Loans

      Common eligibility criteria for ALL home loans include:

      • Age criteria:
        • Minimum age – 21 years.
        • Maximum age – 65 years.
      • Nationality criterion – Singapore citizens, Permanent Residents and foreigners can apply for numerous UOB home loans.
      • Maximum loan amount – Up to 80% financing.
      • Loan tenure – Maximum of 35 years or up to 75 years of age of the borrower, depending on whichever of the two occurs earlier.
      • Fire insurance for the property must be provided for the loan application to be approved by the bank.
    5. Bank of China (BOC) Home Loans

      Common eligibility criteria for ALL home loans include:

      • Age criteria:
        • Minimum age – 21 years.
        • Maximum age – 65 years.
      • Nationality criterion – Singapore citizens, Permanent Residents and foreigners are eligible to apply for BOC home loans.
      • Income criterion – Minimum income of S$24,000 p.a.
      • BOC home loans are applicable to first-time buyers, investors, refinancers and upgraders.
      • BOC home loans can be used for landed as well as non-landed private residential properties.
      • BOC home loans can be used for investment purpose, owner-occupation, resale of properties and for purchase of new properties.
    6. Maybank Home Loans

      Commercial and Industrial Property Loan eligibility criteria include:

      • Maximum loan amount of 80% of the valuation or purchase price, depending on whichever of the two is lower.
      • Maximum loan tenure of 30 years.

      Overseas Property Loan eligibility criteria include:

      • Minimum age – 21 years.
      • Nationality criterion – Singapore citizens and Permanent Residents can apply for this loan.
      • Financing up to 80% for properties in London.
      • Financing up to 70% for properties in Australia and Malaysia. Malaysian properties to be purchased in Penang, Kuala Lumpur, Johor Bahru or Malacca.

      Home Loan eligibility criteria include:

      • Applicable for private property and HDB flat purchases. New purchase and refinancing loans are available.
      • Financing only applicable on Singapore properties and in Singapore Dollars (SGD).
      • Income criterion for renovation loan – Minimum S$30,000 per year.
    7. RHB Home Loans

      HDB Home Loan eligibility criteria include:

      • Minimum age – 21 years.
      • Nationality criterion – Singapore citizens and Permanent Residents only are eligible to apply for this loan.
      • The borrower/s of this loan must also be a mortgagor.

      Private Property Loan eligibility criteria include:

      • Minimum age – 21 years.
      • Nationality criterion – Singapore citizens, Permanent Residents and foreigners are eligible to apply for this loan.
      • The borrower/s of this loan must also be a mortgagor.

      Commercial Property Loan eligibility criteria include:

      • Minimum age – 21 years.
      • Nationality criterion – Singapore citizens, Permanent Residents and foreigners are eligible to apply for this loan.
      • Minimum loan amount – S$300,000.

      Malaysia Residential/Commercial Property Financing eligibility criteria include:

      • Minimum age – 21 years.
      • Nationality criterion – Singapore citizens, Permanent Residents and foreigners are eligible to apply for this loan.
      • Maximum financing – Up to 80% of the purchase price.
      • Loan tenure – Maximum tenure of 30 years.
      • Individuals who have steady income only can apply for this loan.

      Renovation Loan eligibility criteria include:

      • Age criteria:
        • Minimum age – 21 years.
        • Maximum age – 55 years.
      • Nationality criterion – Singapore citizens and Permanent Residents only are eligible to apply for this loan.
      • Income criteria:
        • Minimum income required of the main applicant is S$30,000 p.a.
        • If the joint applicant’s income should also be taken into consideration for the loan quantum, then the joint applicant must also earn a minimum of S$30,000 p.a.
      • The joint applicant must have a gainful employment and must be related to the main applicant as their spouse, sibling, parent or child.
      • The main applicant or the joint applicant may be the owner of the property that has to be renovated.
    8. CIMB Home Loans

      HDB Home Loan eligibility criteria include:

      • Minimum age – 21 years.
      • Maximum loan tenure – 30 years or 70 years of age of the borrower, depending on whichever of the two occurs earlier.
      • Minimum loan amount – S$100,000.
      • Minimum income criterion – Over S$18,000 p.a.

      Private Property Loan eligibility criteria include:

      • Minimum age – 21 years.
      • Maximum loan tenure – 35 years or 70 years of age of the borrower, depending on whichever of the two occurs earlier.
      • Minimum loan amount – S$200,000.
      • Minimum income criterion – Over S$24,000 p.a.

      Commercial Property Loan eligibility criteria include:

      • Minimum age – 21 years.
      • Maximum loan tenure – 30 years or 70 years of age of the borrower, depending on whichever of the two occurs earlier.
      • Minimum loan amount – S$200,000.
      • Minimum income criterion – Over S$24,000 p.a.

      London Property Loan eligibility criteria include:

      • This loan is applicable for properties to be purchased in Chelsea, South Kensington, Mayfair or Knightsbridge.
      • Minimum age – 21 years.
      • Nationality criterion – Singapore citizens and Permanent Residents only are eligible to apply for this loan.
      • Maximum loan tenure – 30 years or 70 years of age of the borrower, depending on whichever of the two occurs earlier.
      • Minimum loan amount – S$300,000.
      • Maximum financing – 70% financing.
      • Minimum income criterion – Over S$120,000 p.a.

      Australia Property Loan eligibility criteria include:

      • Applicable on completed properties as well as properties under construction.
      • Minimum age – 21 years.
      • Nationality criterion – Singapore citizens and Permanent Residents only are eligible to apply for this loan.
      • Maximum loan tenure – 30 years or 70 years of age of the borrower, depending on whichever of the two occurs earlier.
      • Minimum loan amount – S$300,000.
      • Maximum financing – 70% financing.
      • Minimum income criterion – Over S$60,000 p.a.
    9. Hong Leong Finance (HLF) Home Loans

      HDB Home Loan eligibility criteria include:

      • Nationality criterion – Singapore citizens and Permanent Residents can apply for this loan.
      • This loan is applicable for the purchase of an HDB flat directly from the HDB, from the resale market or for refinancing an existing HDB home loan.
      • MSR (Mortgage Servicing Ratio) rules and MAS 825 are applicable.
      • Maximum loan tenure – 30 years or 70 years of age.
      • Maximum financing – 80% financing.

      Private Property Home Loan eligibility criteria include:

      • Nationality criterion – Singapore citizens, Permanent Residents and foreigners can apply for this loan.
      • This loan is applicable for the purchase of a private residential property in Singapore and for refinancing an existing home loan.
      • TDSR (Total Debt Servicing Ratio) rules and MAS 825 are applicable.
      • Maximum loan tenure – 30 years or 70 years of age.
      • Maximum financing – 80% financing.

      Mortgage Equity @50 eligibility criteria include:

      • This loan is applicable for owner–occupied properties and investment private residential properties.
      • The LTV (Loan-to-Value) ratio should be 50% or below.
    10. DBS/POSB Home Loans

      Renovation Loan eligibility criteria include:

      • Age criteria:
        • Minimum age – 21 years.
        • Maximum age – 65 years.
      • Nationality criterion – Singapore citizens and Permanent Residents are eligible to apply for this loan.
      • This home loan is applicable to property owners or related members such as their spouse, parent/s, sibling/s or children who have the consent of the owner.
      • Single applications and joint applications (with spouse, parent/s, sibling/s or children) are permitted.
      • Income criteria:
        • Single application – Minimum S$24,000 p.a.
        • Joint application:
          • Main applicant – Minimum S$24,000 p.a.
          • Joint applicant – Minimum S$12,000 p.a.
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