New Housing Loans in Singapore: Criteria for Borrowers, Guarantors, and Lenders

Identification and Requirements for New Housing Loans

Purpose:

for identifying eServices and understanding the criteria that borrowers, guarantors, and lers must follow when applying for new housing loans in Singapore.

Who We Are:

Our agency oversees regulation, development, monetary policy, and the issuance of government bonds. We also publish official statistics and offer career opportunities.

Regulatory Framework:

1. Borrower-Mortgagor Requirement

   • When applying for a loan to purchase residential property, the borrower must be both named on the Property Option to Purchase form and listed as the mortgagor in the Land Titles Act mortgage document.

   • This requirement applies to loans secured by residential properties where the Option to Purchase OTP was issued after June 29, 2013, or any refinancing of such loans.

2. Guarantor-Borrower Requirement

   • If an individual's Total Debt Servicing Ratio TDSR exceeds the threshold, they must be brought in as a co-borrower when guaranteeing the loan.

   • The guarantor will then be considered a co-borrower and subjected to lower Loan-to-Value LTV limits on future housing loan applications.

   • This policy applies to loans for residential properties with an OTP issued after June 29, 2013, or refinancing under certn conditions. For mortgage equity withdrawal loans, the requirement is only applicable in specific scenarios.

The borrower-mortgagor and guarantor-borrower requirements are designed to prevent borrowers from circumventing LTV limits and TDSR thresholds. These guidelines ensure financial stability by regulating loan applications and securing properties accordingly.

For more information or if you require assistance, please contact our agency directly through the provided methods listed on our website.

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