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New Housing Loan Residential

Buying a house in Singapore can be a daunting task, especially if you’re a first-time home buyer. There are hundreds of complicated considerations and decisions involved, and many home buyers find this process overwhelming. If you’re confused by the countless options available or are feeling at a loss on how to navigate these choppy waters, you’ve come to the right place.

At SMP Consulting, we believe in the importance of planning well before you commit to any property purchase. We provide expert, free advice to people just like you, because no one should face these important decisions alone. Read on to learn tips and valuable information about buying a property. Find out some tips for expats or foreigners and investors buying apartment, condominium, private property and HDB flats in Singapore.


What is Mortgage Planning?

Many may be familiar with the term financial planning, but most do not pay enough attention to mortgage planning. However, planning for your mortgage is a very vital aspect of financial planning, because buying a property may be one of the biggest financial decisions you will make in your lifetime. Some key mortgage planning considerations include:

  • Is this an investment or owner’s occupation property, and how long do you intend to hold on to this property?
  • What is your total cash outlay for this property purchase?
  • How much CPF funds can you utilise and how much can you set aside for rainy days?
  • Do you meet the credit requirements and guidelines set out by the financial institutions in order to qualify for a mortgage loan? 
  • Based on your current financial status, what is the maximum loan and mortgage instalment you can afford?
  • What are your current financial obligations and are there any potential changes in the near future?

The Ideal Singapore Property Purchase Procedure

newLoanRes 5steps

Many home buyers jump straight to Step 3 in the buying process, probably because it is the most interesting part. At SMP, we encourage you to do a careful mortgage planning step first, as well as obtain an Approval In-Principle before embarking on your property search. In fact, some of the key considerations for mortgage planning can be answered by working with one of our SMP Mortgage Broker. We’re here to assist you in getting an Approval In-Principle for your mortgage loan, and our broker will gladly participate in your mortgage planning process to provide you with the necessary guidance.


Importance of Housing Loan Approval In-Principle in Singapore

Every day, many home buyers make the same mistake. They start searching for their property before properly planning and getting an Approval In-Principle for their mortgage loan. This often results in a last-minute mad rush for a loan application, and some even have to forfeit their option fee after realising that their loan application cannot be approved. Some home buyers may even lose the opportunity to buy their dream home because they are not sufficiently prepared to commit the purchase quickly enough. Getting a housing loan approval takes time, and leaving this important step to the last minute can cause painful results. An Approval In-Principle:

Allows you to easily identify homes priced within the approved loan amount granted by a lender

  • Lowers your anxiety during the purchasing process 
  • Save your time and money
  • Clears unknowns and doubts, and eliminates unpleasant surprises
  • Helps you make informed decisions
  • Avoids the heartache of finding the 'perfect home' and then discovering you can't get the financing for it
  • Enables you to move quickly when the right property comes up

In short, an Approval In-Principle effectively makes you a cash buyer. When you place an offer on a property, the seller doesn't worry about whether you'll get mortgage loan approval, since you'll already have it in place – putting you in a much better position to obtain the property.


Video Presentation

“At SMP, we assist you in mortgage planning and simplifying your housing loan process
so your home purchasing experience is a pleasant one!”


Who needs it?

First-time home buyers

As a first-time home buyer or private property buyer, you may have many queries and uncertainties about how to go about getting a bank loan. You may also be unsure of the amount of money you can borrow, or what’s involved in the loan process. All these concerns can be eliminated if you apply for an Approval In-Principle for your mortgage before you begin your property search. Imagine this scenario: You start searching for a property without a pre-loan approval and you find the property of your dreams. However, you’re unable to commit immediately to the purchase because you are not sure whether the bank can grant you the necessary loan. Other potential buyers are eyeing the same property, and since seller is very motivated to sell as soon as possible he begins negotiations with a buyer better positioned to act quickly. Sadly, you lose the opportunity to buy your dream home.

At SMP, we help first-time home buyers analyze their financial positions and obtain pre-approvals before disappointments can set in. Our experienced Mortgage Consultants assist you in your housing financing needs, expertly guiding you through the entire loan process – so you can get into your dream home.

Property Investors

As a property investor, you need to be aware of any changes that have taken place in financial institutions in the housing loan arena. CPF funds previously were available for multiple properties and non-residential properties with any cap. However, with the new CPF rules and regulations, these funds have now changed. Any properties bought on or after 2005 July are subject to the multiple properties and non-residential ruling. Furthermore, the housing valuation limit on multiple properties is in place when CPF funds are involved. This has an effect on property investors who bought properties before the ruling was in place, and if there is any sale involved, they may not be able to enjoy the privileges that they previously had.

At SMP, we assist property investors in understanding the changes that have taken place that affect the use of funds for their next property. With a housing loan Approval In-Principle, we will enable you to know whether you are considered as highly leveraged by financial institutions or have maximised your debt servicing ratio, in order to assist you in planning for your next purchase.

Business Owners

As a business owner, you have many opportunities for investments. If you already have other financial commitments in various financial institutions, this may affect your chance of obtaining a housing loan. Without a housing loan Approval In-Principle, you may not have an accurate idea of your financial status in the eyes of financial institutions. Also, like many other business owners, you may have other assets and investment portfolios worth millions of dollars. However, if you’re not fully aware of your financial status before committing to a property purchase, it would be detrimental to find out that the financial institutions cannot support you with the housing loan you require. Assets and investment portfolios may actually be more of a stumbling block than a stepping stone since they are not easily liquidated, and the value of your investments is very subjective to market sentiments.

At SMP, we assist business owners with multiple assets in effective mortgage planning. Our clients have a better understanding of their financial position before committing to their property purchases. Effective mortgage planning regarding current assets and investment portfolios make buyers more prudent, and eliminate the disappointment of unfavorable approvals. Also, our Mortgage Consultants save you valuable time – time that you can use to continue running your business.

New PR / New Singaporean Citizen

As a new Singapore permanent resident or even a new Singapore Citizen, some of the common concerns are that CPF funds may be low, which requires forking out more cash for property purchases. More and more permanent residents and new Singapore citizens are buying into HDB as their first home. And those who have hit certain income levels will have to get housing loan financing from a bank or financial institution since they will not qualify for the HDB housing loan. Incidentally, buying a HDB does not necessarily mean that the cash out-front will be lower than buying a private property, because HDB units in prime locations can be expensive, with sellers asking for hefty prices above valuation. Renovation costs can also contribute to the total cash outlay needed.

At SMP, we assist our clients in mortgage planning, and by applying for Approval In-Principle, our clients can better work out their budget before committing to a home purchase. We aim to make the process simple and hassle-free for our clients who may not be very familiar with the housing loan processes in our area.

Expats or Foreigners who want to buy a property in Singapore

Settling into a new environment can prove to be quite a challenge. After spending some time here, some expats find that it may make more economical sense to buy a property rather than renting. It may also be a good investment opportunity, since you’re better positioned to appreciate the property market conditions and spot good buying opportunities. But as an expat in Singapore, you may not be familiar with the local property purchase processes and other financial institution requirements and offers.

Even experienced property buyers in other countries may not know the maximum loan amount you can get from financial institutions here in Singapore. And if your main savings are overseas, you may not want to shift your funds here for a property purchase – in which case it is especially wise to obtain an Approval In-Principle. An Approval In-Principle from a financial institution determines the required loan approval amount and provides a loan package that best suits your needs.

At SMP, we have assisted many expats and foreign clients in securing their required home loans here in Singapore, and our experienced Mortgage Consultants are here to assist you in your housing financing needs, expertly guiding you through the entire loan process.


For home buyers who have previous loan rejections by banks for any credit reasons known or unknown to them, obtaining a housing loan Approval In-Principle will allow them to be better informed of how their credit rating affects the process – and also help them work toward improving credit ratings. If the record is kept well for at least one year and the credit rating has improved, most banks will take that into consideration - helping our clients to purchase their desired house. Having a good credit standing is important to more than just obtaining a housing or any other loan – it also prevents the possibility of bankruptcy.

At SMP, we act as “financial coaches” to help our clients identify possible pitfalls in loan arrangements, buy their dream homes, and reach their financial freedom goals.


arrow To check how much housing loan amount you can borrow, try our housing loan calculator calc loanelignow!


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