Being single allows you to have autonomy in your financial decisions, one of which is purchasing a home for yourself. Some would say it’s more challenging for singles to acquire a home loan. But don’t lose hope; we will walk you through your options in getting that loan.
Once you’ve ticked the boxes for insurance, investments, and savings, the next financial milestone is owning a home. How do you get a housing loan in Singapore as a single adult?
We uncover everything you need to know about housing loans for singles.
Prepare for your housing loan
What financial institutions consider is whether you can support the costs of owning a home. Thus, it’s important to plan your financing and consider your options.
Here are the Monetary Authority of Singapore’s (MAS) housing rules and their maximum limits for your home loan application.
It’s important to know different options for home loan tenure. For HDB flats, you can make your repayment in a maximum of 30 years, while non-HDB properties are capped at 35 years. You may adjust according to your finances and profile.
Loan-to-value limits (LTV)
LTV is the maximum sum you can get from a financial institution. It’s calculated as a percentage of the property you’re purchasing. Your LTV decreases if you own more than one property.
If it’s your first home, you’d get a LTV limit of either 55% or 75% of the house purchase price. The minimum cash down payment would be 5% and 10% respectively.
Own another property? Your LTV then becomes 25% or 45%, with a 25% cash down payment. For someone who owns two or more properties, you’d have a LTV of either 15% or 35%, and a 25% cash down payment.
For HDB flats, the lower LTV limits apply when loan tenure goes beyond 25 years. For private properties, the lower LTV limits can go on for 30 years, or when the loan period goes beyond the buyer’s age of 65 years.
Mortgage Servicing Ratio (MSR)
MAS states that no more than 30% of your gross income must go towards your property loan repayments, but this rule applies only to HDB flats and Executive Condo (EC) purchases.
Total Debt Servicing Ratio (TDSR)
The TDSR limit is 55% of your salary, which is the maximum amount that can go to debt repayment. Your home loan repayment should be inclusive of this percentage.
HDB eligibility schemes for singles
According to the Housing and Development Board (HDB), different terms will apply according to your profile. Here are factors they consider.
- Status (single, widowed, or divorced)
- Age 35 and above (in some instances, below)
- Whether you’re the sole purchaser or co-purchasing
Below are the options available for you when it comes to purchasing HDBs as a single.
|Single Status/HDB Flat Type||HDB Flat||Resale Flat||Community Care Apartments|
|Single||Two-room Flexi flat (non-mature area)||All flat types (except 3Gen flats)|
|Two or more singles||Two-room Flexi flat (non-mature area)||All flat types (except 3Gen flats)|
|Seniors||Short lease two-room Flexi Flat for seniors 55 years and above (lease runs from 15-45 years with five-year increments)||Short lease for seniors aged 65 years and above (lease runs from 15-35 years with five-year increments)|
|Orphan siblings (one deceased parent must be a Singaporean Citizen or Singapore Permanent Resident||Up to a five-room flat||All flat types (except 3Gen flats)|
|Fiance and Fiancee||Up to a five-room flat||All flat types (except for 3Gen flats)|
Note: All homeowners must be a Singaporean Citizen (SC) or Singapore Permanent Resident (SPR)
|Criteria||New Flat||Resale Flat|
|Age||35 years old||Either:35 years and above (unmarried or divorced), or21 years old and above (widowed or orphaned)|
|Household income ceiling (monthly)||S$ 7,000 (two-room Flexi flat with a 99-year lease)||No income ceiling|
|Ownership or interest in property overseas or in Singapore (other than a HDB flat)||All applicants and occupiers in the flat application form:Must not own nor have an interest in overseas and local private propertyHave not disposed any private property in a period of 30 months before applying for the HDB flat||Any person listed in the application must dispose of any local or overseas private property within six months of purchasing the HDB flat.|
|Previous housing subsidies||Only first-timers can qualify||Any previous housing loan subsidy taken has no effect on your eligibility to buy a HDB flat. You may not be able to apply for a CPF housing grant though (excluding one Proximity Housing Grant).|
|Additional payable amount||S$15,000 (part of the booked flat’s price)||N/A|
|CPF Housing Grants||Enhanced CPF Housing Grant (Singles)||CPF Housing Grant (Singles)Enhanced CPF Housing Grant (Singles)Proximity Housing Grant (Singles)|
Two or more purchasers
|Criteria||New Flat||Resale Flat|
|Age||35 years old||Either:35 years and above (unmarried or divorced), or21 years old and above (widowed or orphan)|
|Citizenship||Two co-applicants who are Singaporean citizens||Two co-applicants who are Singaporean citizens|
|Household income ceiling (monthly)||S$7,000||No income ceiling, but it does apply to be eligible for CPF housing grants (apart from the Proximity Housing Grant) and HDB Housing Loan|
|Ownership or interest in property overseas or in Singapore (other than a HDB flat)||All applicants and occupiers in the flat application form: |
-Must not own nor have an interest in overseas and local private property
-Have not disposed any private property in a period of 30 months before applying for the HDB flat
|Any person listed in the application must dispose of any local or overseas private property within 6 months of purchasing the HDB flat.|
|Previous housing subsidies||Only first-timers can qualify||Any previous housing loan subsidy taken has no effect on a person’s eligibility to buy a HDB flat. They may not be able to apply for a CPF housing grant though (excluding one Proximity Housing Grant).|
|CPF Housing Grants||Enhanced CPF Housing Grant (Singles)||CPF Housing Grant (Singles)|
Enhanced CPF Housing Grant (Singles)
Proximity Housing Grant (Singles)
HDB has Community Care Apartments that are senior-friendly units packaged with care services in support of their silver years. The HDB flats come with a wheelchair-friendly entrance, easy-to-slide partitions, and community spaces for neighbours to socialise. There are also optional services available, which include laundry, meals, medical escorts, and transport.
Seniors need to meet the monthly household income ceiling of S$14,000 to be eligible for their preferred HDB purchase.
Since the HDB purchase requires a home loan, you have two options to finance this – a HDB Concessionary Loan or a loan from a financial institution.
HDB Concessionary Loan
If you’re set on taking a HDB loan for your purchase, use a HDB loan calculator to have an idea on the budget you need in hand. You may use the comparison tool to help you get a clearer idea on rates, instalments, and the like.
The next step after choosing a HDB unit is to apply for a HDB Loan Eligibility (HLE) letter. You can submit your request for the letter at the HDB online portal by signing in your SingPass and creating a Myinfo account. This allows a seamless process for retrieving your personal information.
For the recent and upcoming HDB launches, visit the HDB Flat Portal. Likewise, you may look for resale flats on newspapers or online property websites.
If you’re opting for bank financing, you need to apply for an In-Principle Approval (IPA) for your home loan. This document states how much your bank of choice will lend you, considering all the limits mentioned above (LTV, TDSR, etc.), your credit scores, and your income.
It’s best to prepare the IPA letter before paying the option fee as there’s no refund for this. Usually, it doesn’t take much time to obtain an IPA letter – it may only take around 10 minutes in some banks! Once you’ve gotten your IPA letter, keep in mind that it will only be valid for 30 days.
Finally, you need to share supporting documents onto the bank’s online portal for processing. Such documents include CPF contributions, income proof, and the like.
Want to know more about home loan rates across Singapore? Click on the button below and compare away!
Read these next:
What You Need To Know About The New Housing Loan Rules
How Do HDB Home Loans Work?
HDB Loan Vs Bank Loan: Which One Should You Go For?
What Type Of HDB Flats Can Single Singaporeans Buy?
Everything You’ve Ever Needed to Ask About HDB Downpayments