Singapore Mortgage Guide 2026: HDB, TDSR, and ABSD Rules

The Singaporean mortgage market is highly regulated by the MAS to prevent property bubbles. Borrowing is heavily dictated by property type (public HDB flats vs. private condominiums) and stringent debt-servicing limits. The market is also heavily taxed for foreigners and investors via the ABSD. This guide outlines the 2026 lending landscape.

Updated 2026-09-11 · Yes. You can use funds from your CPF Ordinary Account (OA) to pay down the principal, cover the initial 20% deposit, and pay the monthly installments, significantly reducing your out-of-pocket cash flow. However, when you eventually sell the property, you must refund the CPF principal used plus accrued interest back into your CPF account. · Fact-Checked Lending Norms

TE By Tatyabala Emmanuel · Founder & Cybersecurity Engineer

Verified · 2026-09-11

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How Much Can You Borrow in Singapore?

Your borrowing capacity is determined by three strict macroprudential rules: LTV limits, TDSR, and MSR (for HDBs only).

Loan-to-Value (LTV) Limits

Bank Loan (Private Property or HDB): Maximum 75% LTV. You must provide a 25% down payment. Crucially, at least 5% of the purchase price must be paid in hard cash; the remaining 20% can come from your CPF (Central Provident Fund) Ordinary Account.

HDB Concessionary Loan (HDB only)	Maximum 80% LTV. You need a 20% down payment, all of which can be paid using CPF.

Total Debt Servicing Ratio (TDSR)

Applies to all property purchases. Your total monthly debt obligations (mortgage, car loans, credit cards) cannot exceed 55% of your gross monthly income.

To calculate TDSR, banks must use a medium-term stress test rate. In 2026, the stress rate is typically 4.0% for residential properties.

Mortgage Servicing Ratio (MSR)

Applies only to HDB flats and Executive Condominiums (ECs). The monthly mortgage payment alone cannot exceed 30% of your gross monthly income. This is a much tighter constraint than TDSR and severely limits borrowing for public housing.

Use the affordability calculator to test your income against the 55% TDSR and 30% MSR limits.

Singapore Mortgage Types

Fixed Rate: The rate is locked for a short period (usually 2, 3, or 5 years). Provides stability. Break costs apply if you refinance or sell during the lock-in period.

Floating Rate (SORA-pegged): Tied to the Singapore Overnight Rate Average (SORA) — usually a 1-month or 3-month compounded SORA plus a bank margin. Highly transparent.

Board Rate	A variable rate determined internally by the bank. Less transparent than SORA.

HDB Concessionary Rate: Fixed at 0.1% above the CPF Ordinary Account interest rate (currently 2.60%). It is exceptionally stable but occasionally slightly higher than competitive bank rates.

Current Singapore Mortgage Rates (2026)

Following MAS policy adjustments, typical 2026 rates are:

2-year or 3-year Fixed	3.10% to 3.40%
3-month Compounded SORA + Margin	3.20% to 3.60%

HDB Loan: 2.60%

*Rates are illustrative averages as of September 2026.*

Closing Costs and Taxes (Buyer's Stamp Duty)

Singapore uses taxes aggressively to control foreign investment and multiple property ownership.

Buyer's Stamp Duty (BSD)

Progressive tax applied to all buyers. Approx. 1% on first $180k, 2% on next $180k, 3% on next $640k, 4% on next $500k, and up to 6% for properties over $3 million.

Additional Buyer's Stamp Duty (ABSD)
Singapore Citizens	0% on 1st property, 20% on 2nd, 30% on 3rd.
Permanent Residents (PR)	5% on 1st property, 30% on 2nd.

Foreigners: A massive 60% flat rate on any property purchase (subject to Free Trade Agreement exemptions, e.g., US citizens pay the same as SG citizens).

Other Buyer Costs:

Legal Fees	$1,500 to $3,000 SGD.
Valuation Fee	$200 to $500 SGD.

Use the budget calculator to estimate your massive ABSD liability and total cash/CPF required.

The Singapore Mortgage Process

1. Secure the Deposit. You need 5% in hard cash and 20% in CPF for a bank loan. Check your CPF OA balance.

2. Obtain In-Principle Approval (IPA). Valid for 30 days. Ensures you meet TDSR/MSR limits.

3. Option to Purchase (OTP). You pay a 1% cash booking fee to the seller to secure the OTP. You typically have 14 to 21 days to exercise it.

4. Exercise the OTP. You sign the OTP and pay the remaining 4% in cash (to complete the 5% cash requirement).

5. Pay Stamp Duties. BSD and ABSD must be paid within 14 days of exercising the OTP (can be reimbursed from CPF later, but usually requires cash upfront).

6. Completion. Takes 10 to 12 weeks. Your lawyer draws down the mortgage and CPF funds to pay the seller.

Can I use CPF to pay my monthly mortgage?

Yes, eligible buyers can withdraw funds from their Central Provident Fund Ordinary Account (CPF OA) to service both their initial down payment (up to 20% for bank loans, or the full 20% for HDB concessionary loans) and recurring monthly mortgage payments. However, usage is subject to the Valuation Limit (VL) and Housing Withdrawal Limit (HWL) set by the CPF Board. Furthermore, when you eventually sell the property, you are required by law to refund all CPF principal withdrawn plus the 2.5% per annum compound accrued interest back into your CPF OA account.

ℹ️ Statutory Notice & Methodology

Global Finance Calc provides mathematical estimates for education, planning, and comparison — not regulated financial advice or credit pre-approval. Tax legislation, statutory central bank buffers, and underwriting criteria change. Confirm critical figures with official regulatory publications or a licensed mortgage broker before signing contracts.