Alana Harrington
Buying property in Singapore isn’t just about picking the right unit—it’s about understanding the rules that can limit how much you can borrow.
And one of the most important things you need to get familiar with is the loan caps imposed by the Monetary Authority of Singapore (MAS).
These caps don’t just affect how big a mortgage you can get—they shape your entire property strategy, from what type of home you can afford to when it makes sense to buy.
Whether you’re buying your first condo or looking at upgrading to a landed home, getting ahead of these financial rules can make all the difference in avoiding disappointment—or financial stress—down the line.
Key Highlights
- MAS loan caps are designed to keep household debt manageable.
- They directly influence how much you can borrow based on income, loan tenure, and existing obligations.
- Knowing your Loan-to-Value (LTV) limit is critical before making an offer on a property.
- Total Debt Servicing Ratio (TDSR) plays a big role in shaping your loan eligibility.
- Choosing the right property—like River Green or Springleaf Residence—requires aligning your budget with MAS policies.
- Planning early and getting pre-approval helps avoid roadblocks later.
Why MAS Enforces Loan Caps
Let’s start with the reason why MAS loan caps exist in the first place. Singapore’s property market has seen significant price growth over the years.
In response, the MAS implemented several cooling measures to prevent over-leveraging—essentially to make sure people aren’t taking on home loans they can’t realistically afford.
These caps aim to:
- Maintain long-term financial stability in the housing market.
- Prevent speculative buying driven by easily accessible credit.
- Ensure that buyers don’t end up with unaffordable mortgages.
So, while loan caps may feel restrictive, they’re there to protect both individuals and the broader economy.
Understanding LTV, TDSR, and MSR
There are three major frameworks to know when you’re planning your property finances in Singapore:
Loan-to-Value Ratio (LTV)
This is the maximum loan amount you can take out based on your property’s value. For example, if your LTV is 75%, and the property is $1 million, the maximum loan you can get is $750,000. You’ll need to fund the remaining $250,000 through cash or CPF.
Key LTV thresholds:
- Up to 75% for first housing loan
- Down to 45% or less if you have an existing loan
- Private banks may impose stricter internal policies
Total Debt Servicing Ratio (TDSR)
TDSR limits how much of your gross monthly income can go toward paying debts—including your new property loan. Currently, it’s capped at 55%.
Let’s say you earn $10,000/month. That means all your monthly debt obligations (car loans, credit cards, personal loans, and the new mortgage) must stay within $5,500.
Mortgage Servicing Ratio (MSR)
MSR applies only to HDB flats and executive condos, capping the portion of your income used to service the mortgage to 30% of your monthly income.
If you’re purchasing private property, like the new River Green development, MSR won’t apply, but LTV and TDSR certainly will.
River Green offers waterfront living and modern amenities—but the more desirable the unit, the more crucial it becomes to check your borrowing power early on.
Factors That Affect How Much You Can Borrow
Let’s break down the real-life things that can change your loan eligibility:
- Loan tenure: The longer your loan (especially past 30 years), the lower your LTV cap drops.
- Age of borrower: If the loan stretches past the age of 65, your LTV may be further reduced.
- Number of existing loans: Already holding a property loan? You’ll face a much lower cap—possibly only 45% LTV.
- Variable vs. fixed income: Commission-based or self-employed individuals may be subject to income haircut rules, reducing their assessed income.
These factors combine to determine whether the property you have in mind is financially realistic.
How Loan Caps Shape Your Property Strategy
Let’s say you’re eyeing a $1.6 million condo at Springleaf Residence.
You’re a salaried employee earning $12,000/month with no existing loans.
Here’s what your breakdown might look like:
- TDSR: 55% of income = max $6,600/month in total debt
- If your loan is within 30 years and you’re below age 65, you may qualify for 75% LTV
- That gives you a loan of $1.2 million, so you’ll need to cover the rest ($400,000) with CPF or cash
- Based on current interest rate buffers, your monthly repayment would be roughly $5,500–$6,000, keeping you safely under the TDSR cap
So even if you “can afford” a property, these limits can shape how big a unit you get, which floor you choose, and even which developments you consider.
What You Can Do to Prepare Better
The good news? With proper planning, these loan restrictions don’t have to derail your property dreams.
Here are a few proactive steps:
- Get an in-principle approval (IPA) before shopping. This gives you a clearer picture of what you’re actually allowed to borrow.
- Clear other debt like car loans or large credit card balances to increase your available TDSR room.
- Consider smaller loan tenure if you want to maximize your LTV (though this means higher monthly payments).
- Check CPF balances early—many people overlook how much they can use to offset the downpayment.
Banks and financial advisors can help model different scenarios so you’re not blindsided later.
Buying Property with MAS Caps in Mind
So how do you go about choosing the right property given all these constraints?
You’ll need to consider not just the price tag, but:
- Loan eligibility under MAS caps
- Your long-term cash flow
- Future plans—like upgrading, renting, or investing
For new private condos like River Green or Springleaf Residence, it’s smart to align your expectations with your TDSR limit and ensure you’ve got enough cash or CPF to cover the gap after the loan.
Developers are also increasingly aware of these rules, offering flexible payment options or staged progress payments, especially for new launches.
Final Thoughts
The MAS loan caps are not just technical rules—they shape your real options in Singapore’s property market. Whether you’re looking to buy your first home or upgrade to a bigger place, understanding LTV, TDSR, and MSR helps you make smarter decisions.
Instead of focusing on how much you wish you could borrow, shift your thinking toward how much you should borrow comfortably. When you’re clear on that, the rest—unit choice, developer, even floor level—starts to fall into place.
In this market, it’s not about stretching every dollar. It’s about planning realistically so that your home supports your life—not the other way around.
