Simulated case study: a hypothetical scenario to illustrate the rules. Not a real client or transaction. Figures as at 10 October 2026.
Mei, 28, earns S$8,200 a month and wants to buy her first private home with help from her parents. Under the 55% Total Debt Servicing Ratio (TDSR) tested at a 4% interest rate, her income supports a bank loan of about S$944,700 over 30 years, whatever her parents contribute. Under the assumptions below, a S$1,200,000 condo fits her limits and needs about S$332,600 in downpayment and Buyer's Stamp Duty; a S$1,720,000 unit does not.
Figures as at 10 October 2026. Check the official source before acting.
The situation
| Assumption | Value |
|---|---|
| Buyer | Mei, 28, Singapore citizen, first property, sole buyer |
| Gross monthly income | S$8,200, fixed salary |
| Other debts | None |
| Her savings | S$80,000 cash; S$50,000 in CPF Ordinary Account |
| Parents' contribution | S$250,000 cash gift |
| Target price | S$1,200,000 resale condo |
| Loan tenure | 30 years (ends at age 58) |
| Stress test rate | 4% a year |
The rules that apply
| Rule | What it says | Source and date |
|---|---|---|
| TDSR | All monthly debt repayments up to 55% of gross monthly income | MAS, since 16 Dec 2021 |
| Stress test rate | Assessed at the higher of 4% a year or the loan's rate | MAS, since 30 Sep 2022 |
| Loan-to-value | 75% for a first housing loan if tenure is 30 years or less and ends by age 65 | MAS, since 6 Jul 2018 |
| Minimum cash downpayment | 5% of the price in cash for a 75% LTV loan | MAS, since 6 Jul 2018 |
| Buyer's Stamp Duty | 1% to 6% in tiers; ABSD 0% for a Singapore citizen's first property | IRAS), since 15 Feb 2023 |
A gift from parents does not change any of these limits. It only changes how much Mei needs to borrow.
The numbers
Step 1: Maximum instalment under TDSR
- 55% × S$8,200 = S$4,510 a month
Step 2: Maximum loan at the 4% stress rate
Loan = Instalment ÷ [i ÷ (1 − (1 + i)^−n)], with i = 4% ÷ 12 and n = 360
- S$4,510 ÷ 0.0047742 = about S$944,700
Step 3: Loan for a S$1,200,000 condo
- 75% × S$1,200,000 = S$900,000, which is below S$944,700, so the full 75% loan fits.
- Stress-test instalment on S$900,000: about S$4,297 a month, or 52.4% of income, within 55%.
Step 4: Cash and CPF needed
| Item | Amount |
|---|---|
| Downpayment (25%) | S$300,000 |
| of which minimum cash (5%) | S$60,000 |
| Buyer's Stamp Duty | S$32,600 |
| Total needed upfront | S$332,600 |
BSD on S$1,200,000: 1% of S$180,000 (S$1,800) + 2% of S$180,000 (S$3,600) + 3% of S$640,000 (S$19,200) + 4% of S$200,000 (S$8,000) = S$32,600.
Step 5: Where the money comes from
| Source | Amount |
|---|---|
| Mei's cash savings | S$80,000 |
| CPF Ordinary Account | S$50,000 |
| Parents' gift | S$250,000 |
| Total available | S$380,000 |
Under these assumptions, Mei has about S$47,400 left after the downpayment and stamp duty, before legal fees and renovation. The S$60,000 minimum cash portion is covered by her own savings and the gift.
What changes the answer
1. A more expensive unit. At S$1,720,000, a 75% loan would be S$1,290,000. Its stress-test instalment is about S$6,159 a month, or 75.1% of Mei's income, well above 55%. Her loan stays capped at about S$944,700, so she would need about S$775,300 for the downpayment plus S$55,600 BSD, or about S$830,900 upfront. A larger gift helps only if the family can fund that gap.
2. Buying with a partner. If Mei bought jointly with a partner earning S$6,000 a month and neither had other debts, the combined TDSR limit would be 55% × S$14,200 = S$7,810 a month, supporting a loan of about S$1,635,900 at 4% over 30 years. The 75% LTV limit and their ages would then also matter.
3. The "gift" is really a loan. If Mei has to repay her parents on a schedule, that is a debt obligation. Disclose it to the bank: monthly repayments to her parents would reduce how much of her 55% TDSR is left for the mortgage.
What to check for your own situation
- Your borrowing limit: run your income and debts through the how much can I borrow calculator before you look at prices.
- Paper trail: keep records of the transfer from your parents, and ask your bank what it needs to confirm the money is a gift and where it came from.
- Timing: make sure the funds are in your account before the option fee and exercise deadlines.
- Cash vs CPF: confirm how much of the downpayment must be cash and how much CPF you can use, including CPF limits for private property.
- Stamp duty: check BSD with the stamp duty calculator.
- Family agreement: if the money comes with conditions, such as a share of the property, get advice from a lawyer before you sign anything.
Related reading: Bank of Mom and Dad: using a cash gift for a property downpayment and condo downpayment and cash outlay.
This simulated case study is general information, not financial advice.
Frequently asked questions
Can parents give money to help their child pay a home downpayment in Singapore?
Yes. A parental gift can be used towards the downpayment. Banks may ask where large deposits came from and whether the money must be repaid, so keep records showing it is a gift, not a loan.
Does a parental gift increase how much I can borrow?
No. The loan is limited by your income under the 55% Total Debt Servicing Ratio, tested at a 4% interest rate, and by the 75% loan-to-value limit. A gift only reduces how much you need to borrow.
How much can someone earning S$8,200 a month borrow for a private home?
With no other debts and a 30-year tenure, the 55% TDSR at the 4% stress rate allows instalments of S$4,510 a month, which supports a loan of about S$944,700.
How much cash is needed for a private property downpayment?
For a first bank loan at 75% loan-to-value, at least 5% of the price must be paid in cash. The rest of the 25% downpayment can come from cash or CPF Ordinary Account savings, subject to CPF limits.
What if the money from my parents is really a loan?
Then it is a debt. Repayments you have to make would count towards your total debt obligations and reduce how much the bank will lend, so be accurate with your bank.