Financing Guide

Co-Borrowers and Guarantors on a Singapore Home Loan: The MAS Rules

Many buyers ask a parent to "guarantee" a home loan so they can borrow more. Since 2013, MAS rules mean a guarantor who helps you meet the debt-servicing test is treated as a co-borrower, with consequences for their own future borrowing. The rules also require the borrower to be on the property title. Here is how they work.

Rule 1: the borrower must also be the mortgagor

A borrower named on a residential property loan must also be the mortgagor of that property. Banks check that you are listed as a purchaser on the Option to Purchase and as mortgagor on the mortgage document. It applies to loans for the purchase of residential property where the OTP was granted on or after 29 June 2013, and to refinancing of such loans. The aim, MAS says, is to stop borrowers circumventing loan-to-value limits and TDSR thresholds. It does not apply if the loan is not secured on the property being financed.

Rule 2: a guarantor who rescues your TDSR becomes a co-borrower

If you cannot meet the TDSR threshold on your own, another person may be brought in to help you service the loan. That person is considered a co-borrower, not a guarantor, and lower loan-to-value limits apply to their own future housing loan applications. This applies to loans for residential purchases where the OTP was on or after 29 June 2013, to other loans secured on residential property applied for since that date, and to refinancing in certain situations. For mortgage equity withdrawal loans it applies in certain situations; see home equity loans.

Why this matters to the guarantor

MAS says lower LTV limits apply to the co-borrower's future housing loan applications. For a sense of how large the change can be, MAS's LTV limits for bank loans fall sharply as a person's outstanding housing loans rise: 75% with none, 45% (or 25% for long tenures) with one, with a 25% minimum cash downpayment once there is an existing loan. How MAS applies the lower limits to a co-borrower is for the bank to confirm. See how much loan you can get. If a parent signs to help you, they may find their own next purchase needs much more cash.

How a co-borrower is counted in TDSR and MSR

• For MSR, MAS says banks should count at least 20% of the monthly debt obligation of any property loan where the borrower is a guarantor. See TDSR vs MSR.
• For joint borrowers, banks use the combined income and the income-weighted average age for tenure. See how TDSR is calculated.

Practical points

• If you want a family member to help with a loan, expect them to be on the OTP and title as well, which brings ownership and stamp duty consequences; see ABSD and the highest-rate rule for joint buyers.
• For an HDB flat, adding co-owners involves HDB eligibility conditions; see changing HDB flat ownership.
• Ask the bank to explain in writing how a co-borrower arrangement will be treated for future loans.

FAQ

Related guides

• CPF Home Protection Scheme: Who Needs It, Premiums
• Home Equity Loans (MWL) in Singapore: MAS Rules
• Paying Your HDB Loan: CPF, GIRO and Age 55

Figures current as of October 2026, from MAS's explainers. How a particular bank applies these rules to your case can differ in detail. This guide is general information only and is not financial or legal advice. Anyone signing a loan document should understand their obligations first.