Landed homes are the most expensive homes most Singaporeans will ever buy, and the financing rules matter more at that price. How much a bank can lend, how much must be paid in cash and how much CPF can go towards the purchase are all set by rules from the Monetary Authority of Singapore (MAS) and the CPF Board. This guide sets out those rules as they stand today and runs a simple example for a detached house.
Loan-to-value: how much the bank can lend
The loan-to-value (LTV) limit caps a housing loan as a percentage of the property's value. For an individual borrower, MAS sets the limit by how many housing loans you already have. These limits apply to purchases where the option to purchase was granted on or after 6 July 2018.
| Outstanding housing loans | LTV limit | Minimum cash downpayment |
|---|---|---|
| None | 75% (or 55%) | 5% (10% if the 55% limit applies) |
| One | 45% (or 25%) | 25% |
| Two or more | 35% (or 15%) | 25% |
| Shell company or other non-individual | 15% | – |
The rest of the price, beyond the loan and the minimum cash, can come from cash or CPF Ordinary Account savings, subject to the CPF limits below. For an upgrader who still has a mortgage on their current home, the drop from 75% to 45% is the single biggest number in this table: it means more than half the price must be funded without a loan.
Loan tenure and the age-65 rule
MAS caps housing loans for non-HDB properties, which includes all landed homes, at a tenure of 35 years. But the LTV falls by 20 percentage points if the tenure is longer than 30 years, or if the loan period runs past the borrower's 65th birthday. A first-time borrower who is 45 and wants a 25-year loan would therefore face the 55% limit rather than 75%.
For joint borrowers, MAS uses an income-weighted average age. Its own example: a 60-year-old earning S$8,000 a month borrowing with a 30-year-old son earning S$10,000 a month has a weighted age of about 43. Adding a younger, higher-earning co-borrower can therefore lengthen the tenure available before the lower LTV kicks in. It also makes that person liable for the loan, so it is a family decision as much as a financial one.
TDSR: the income test
The Total Debt Servicing Ratio (TDSR) limits all of a borrower's monthly debt repayments, including the new home loan, to 55% of gross monthly income. The Mortgage Servicing Ratio (30%) does not apply to landed homes; MAS applies it only to loans for HDB flats and executive condominiums still within their minimum occupation period.
Several details of the TDSR calculation matter for landed buyers:
- Stress-tested interest rate. Banks must calculate the new loan's instalment at the higher of a 4% floor or the loan's "thereafter" rate, not at the lower introductory rate you will actually pay.
- All debts count. Car loans, student loans, renovation loans, credit card balances and other secured or unsecured loans are included.
- Variable and rental income are discounted. Banks must apply a haircut of at least 30% to bonuses, commissions, allowances and rental income. Variable income is averaged over the previous 12 months.
- Assets can count as income. Eligible financial assets can be converted into an "income stream" over 48 months. Singapore-dollar deposits pledged with the bank for at least four years carry a minimum haircut of 0%; unpledged assets carry at least 70%.
- Your current mortgage may be excluded. If you are selling your existing private home, its loan can be left out of the TDSR once both parties have signed the sale and purchase agreement and stamp duty has been paid on it.
The asset-pledging route is often how retirees and business owners with irregular salaries qualify for a landed home loan, so it is worth discussing early with your banker.
Using CPF for a landed home
With a bank loan on private property, the CPF Board lets you and any co-owners use Ordinary Account savings up to the lower of the purchase price and the valuation at the time of purchase. Once that limit is reached, you can keep using OA savings up to 120% of that figure, but only if you have set aside your Basic Retirement Sum. For leasehold homes, CPF use can be further pro-rated if the remaining lease cannot cover the youngest buyer to age 95; freehold landed homes avoid that issue.
Note that the minimum cash downpayment in the LTV table must be cash; CPF can only cover the part of the downpayment above that minimum.
A worked example: a S$19.8 million detached house
To show how the rules fit together, take a purchase price of S$19.8 million. The figures below are our own calculations from the MAS rules above, assuming the bank values the house at the purchase price. They ignore stamp duty and legal fees, and they are not a loan offer.
| Item | No other housing loan, 75% LTV | One other housing loan, 45% LTV |
|---|---|---|
| Maximum loan | S$14,850,000 | S$8,910,000 |
| Minimum cash downpayment | S$990,000 (5%) | S$4,950,000 (25%) |
| Balance from cash or CPF | S$3,960,000 (20%) | S$5,940,000 (30%) |
On the TDSR side, a S$14.85 million loan over 30 years, stress-tested at the 4% floor, works out to a monthly instalment of about S$70,900. To keep that within 55%, a borrower with no other debts would need a gross monthly income of roughly S$129,000, after any haircuts. Over 25 years, the instalment rises to about S$78,400 and the income needed to about S$142,500. In practice, many buyers at this level borrow less than the maximum, or pledge assets to meet the test.
Cash you need on day one
Stamp duty is separate from the downpayment and must be paid quickly: IRAS requires Buyer's Stamp Duty to be paid within 14 days of signing. If you already own a home, Additional Buyer's Stamp Duty may apply on top, and at landed price levels both are large sums. Our guide to stamp duty on a landed home covers the rates and who can buy. If any terms are unfamiliar, this glossary of Singapore property terms explains LTV, TDSR and the stamp duties in plain language.
A practical checklist
- Get an in-principle approval before you commit to an option, so you know your real LTV and TDSR limits.
- Check your age and tenure together; a loan that ends after 65 cuts the LTV to 55% for a first loan.
- If upgrading, decide whether to sell first or buy first. The order changes your LTV and whether your current loan counts in TDSR.
- Keep cash aside for the minimum downpayment and stamp duty, which CPF cannot fund upfront.
- Compare the land size and house type you are paying for; our comparison of detached, semi-detached and terrace homes explains how they differ.
New freehold landed homes in District 10
If you are planning a detached home purchase, Aurum Land's Anagram Homes at Tan Boon Chong Avenue offers two freehold detached bungalows in the Holland area of District 10. 1A has a 4,661 sq ft plot, five en-suite bedrooms and a guide price of S$19.8M; 1 is available by private enquiry only. Completion is targeted for Q3 2027. The brand's earlier collection at Kheam Hock Road in District 11 is fully sold. WhatsApp us on +65 8866 9422 for floor plans, pricing and a private viewing.
This article is for general information only and is not financial or investment advice. Lending rules and CPF limits can change, and banks may apply stricter criteria; check with your bank, MAS and the CPF Board before committing to a purchase.
Sources
- MAS, Loan Tenure and Loan-to-Value Limits
- MAS, Mortgage Servicing Ratio and Total Debt Servicing Ratio Rules, last revised 16 December 2021
- MAS, Calculating TDSR for Property Loans
- CPF Board, How much CPF savings you can use for your home purchase, 4 August 2025
- IRAS, Buyer's Stamp Duty (BSD)
