To buy a private home in Singapore in 2026, a first-time borrower can get a bank loan of up to 75% of the price, provided total monthly debt repayments stay within 55% of income when the new loan is tested at a 4% stress rate. You then need at least 5% of the price in cash, a further 20% in cash or CPF, and Buyer's Stamp Duty of 1% to 6% in tiers, plus ABSD if you already own a home or are not a Singapore Citizen. Get your loan approval in principle before you pay an option fee, because the fee is usually forfeited if you cannot exercise.
Figures as at 10 October 2026. Check the official source before acting.
What rules decide how much you can buy?
| Rule | Current setting | Effective | Source |
|---|---|---|---|
| Total Debt Servicing Ratio (TDSR) | All monthly debt repayments must not exceed 55% of gross monthly income | 16 Dec 2021 | MAS: MSR and TDSR rules |
| Stress-test rate | Higher of 4% or the bank's "thereafter" rate, applied to the new property loan | 30 Sep 2022 | MAS: Calculating TDSR |
| Variable and rental income | At least a 30% haircut; variable income averaged over 12 months | Current | MAS |
| Mortgage Servicing Ratio (MSR) | 30% of income, for HDB flats and new ECs bought from developers only | Current | MAS |
| Loan-to-value (no other housing loan) | 75%, or 55% if tenure exceeds 30 years (25 for HDB flats) or runs past age 65 | 6 Jul 2018 | MAS: LTV limits |
| Loan-to-value (one or two+ housing loans) | 45% / 35% (or 25% / 15%), with 25% minimum cash | 6 Jul 2018 | MAS |
| Minimum cash downpayment | 5% at 75% LTV; 10% at 55% LTV | 6 Jul 2018 | MAS |
| Maximum tenure | 35 years for private property; 30 years for HDB flats | Current | MAS |
| Buyer's Stamp Duty | 1% / 2% / 3% / 4% / 5% / 6% in tiers, top rate above S$3 million | 15 Feb 2023 | IRAS: BSD) |
| ABSD | Citizens 0% / 20% / 30%; PRs 5% / 30% / 35%; foreigners 60%; entities 65% | 27 Apr 2023 | IRAS: ABSD) |
| Seller's Stamp Duty on a later sale | 16% / 12% / 8% / 4% if sold within 1 / 2 / 3 / 4 years | Purchases from 4 Jul 2025 | IRAS: SSD-for-residential-property) |
All outstanding debts count towards TDSR, including car loans, student loans, renovation loans and credit card loans; for unsecured revolving credit, banks use the minimum payment due.
How does the Option to Purchase work for a resale home?
For private resale homes, the seller grants you an Option to Purchase (OTP) in return for option money. CEA publishes a template OTP for private residential property. Under the template:
- the option stays open until a stated time and date, or two weeks from the date of the option;
- you exercise it by signing the acceptance copy and paying a further sum (a percentage of the price, less the option money) as the deposit;
- if you do not exercise it as stipulated, the option becomes void and the option money is forfeited to the seller;
- the option money, deposit percentage, completion date and other terms are filled in and can be negotiated.
Because the option money is at risk, get a bank's approval in principle (IPA) before paying it, and make sure the IPA reflects all your debts and how your bonus or commission will be counted. Our guide explains the difference between an IPA and a letter of offer.
What is cash over valuation?
Cash over valuation (COV) is the amount by which your agreed price exceeds the bank's valuation. Banks generally lend on the lower of price and valuation, and CPF Board lets you use CPF only up to the lower of the two, so the COV has to be paid in cash. Ask for an indicative valuation before you agree a price.
How much cash and income do you need? (worked example)
Hypothetical example, not a real transaction: a Singapore Citizen couple buying their first home, a resale condo.
Assumptions
| Input | Value | Basis |
|---|---|---|
| Price | S$1,800,000 | Assumed |
| Bank valuation | S$1,800,000 (and a second case at S$1,750,000) | Assumed |
| Other housing loans | None | Assumed |
| Loan-to-value | 75% | MAS |
| Tenure | 30 years, ending before the income-weighted average age of 65 | MAS |
| Other monthly debts | None | Assumed |
| Stress rate | 4% | MAS |
| Actual loan rate | 2.03% (3-month compounded SORA of 1.23% on 8 Oct 2026 plus an assumed 0.8% spread) | Assumption |
Step by step
- Loan: 75% x S$1,800,000 = S$1,350,000.
- Cash and CPF: minimum 5% cash = S$90,000; the other 20% = S$360,000 in cash or CPF.
- BSD: S$1,800 + S$3,600 + S$19,200 + S$20,000 + 5% x S$300,000 (S$15,000) = S$59,600. ABSD: 0% (first home, citizens).
- Stress-tested instalment: S$1,350,000 over 30 years at 4% = about S$6,445 a month.
- Minimum income under TDSR with no other debts: S$6,445 / 0.55 = about S$11,718 a month of recognised income.
- Actual instalment at the assumed 2.03%: about S$5,010 a month.
- If the valuation comes in at S$1,750,000: the loan falls to 75% x S$1,750,000 = S$1,312,500, and the S$50,000 cash over valuation must be paid in cash. The couple now needs S$487,500 in total downpayment instead of S$450,000.
Run your own figures with our loan affordability calculator and stamp duty calculator. For the full upfront cash picture, read our condo downpayment guide, and for all duty types, our stamp duty guide.
What if you already own a home or may sell soon?
Two stamp duties catch buyers who are not buying their only home for the long term:
- ABSD on a second home. A Singapore Citizen who already owns a residential property pays 20% ABSD on the next one: on S$1,800,000 that is S$360,000, on top of the S$59,600 BSD. A second housing loan is also capped at 45% loan-to-value with at least 25% of the price in cash.
- SSD if you sell within 4 years. For homes bought from 4 July 2025, selling within 1 year costs 16% of the price (or market value, if higher), falling to 12%, 8% and 4% in years 2, 3 and 4. Selling the S$1,800,000 condo in year 2 would mean SSD of 12% x S$1,800,000 = S$216,000.
If your plans could change within four years, factor SSD into the decision. Married couples replacing a home may qualify for an ABSD refund if they sell their first home within the time IRAS allows; check the conditions with IRAS before you buy.
Do you need an agent to buy?
No. You can transact on your own, and CEA publishes checklists and templates for that. If you do appoint an agent:
- check the agent on the CEA Public Register;
- sign CEA's prescribed estate agency agreement, which sets out the scope of work and commission;
- agree the commission in writing; CEA says rates are not fixed and are negotiable;
- note that an agent cannot collect commission from more than one party in the same transaction.
Whoever helps you, the decision and the risk are yours, so check the numbers yourself and have a conveyancing lawyer review the documents.
What to check for your own situation
- With your bank: an IPA that includes all your debts and the haircut on your variable income, the maximum tenure for your ages, and an indicative valuation for the unit.
- With CPF Board: how much CPF you can use, given the price, valuation and remaining lease (it must cover the youngest buyer to age 95 for full use).
- With IRAS: your ABSD profile, including any property you or your spouse own or have an interest in.
- In the OTP: the option money, option period, deposit percentage and completion date, before you pay.
- Before you commit: that you have the cash for the 5% minimum, BSD (due within 14 days), any COV and legal fees, without relying on money you have not yet received.
Frequently asked questions
How much can I borrow to buy a private home in Singapore?
With no other housing loan, up to 75% of the price or valuation, provided the tenure is 30 years or less and does not run past age 65. Your total monthly debt repayments, with the new loan calculated at a 4% stress rate or higher, must not exceed 55% of your gross monthly income.
How much cash do I need?
At least 5% of the price in cash at 75% loan-to-value, another 20% in cash or CPF, plus Buyer's Stamp Duty, legal fees and any cash over valuation. For a S$1.8 million condo that is S$90,000 in cash, S$360,000 in cash or CPF and S$59,600 in BSD.
How is variable income treated for TDSR?
Banks must apply a haircut of at least 30% to variable income such as bonuses and commissions, using the average over the preceding 12 months. Rental income gets the same minimum 30% haircut.
What happens if I do not exercise an Option to Purchase?
Under CEA's template Option to Purchase for private homes, if the buyer does not exercise the option as stipulated, the option becomes void and the option money is forfeited to the seller. The template leaves the option period, by default two weeks, and the deposit percentage for the parties to fill in.
What is cash over valuation (COV)?
It is the amount by which the price exceeds the bank's valuation. Banks generally lend on the lower of price and valuation, and CPF can only be used up to the lower of the two, so COV has to be paid in cash.
Do I pay commission as a buyer?
CEA says commission rates are not fixed. If you appoint an agent, agree the amount and terms in writing using CEA's prescribed estate agency agreement; an agent cannot collect commission from more than one party in the same transaction.