Financing Guide

Mortgage Equity Withdrawal Loans (Home Equity Loans) in Singapore: What MAS Allows

A mortgage equity withdrawal loan, often called a home equity loan, lets you borrow cash against the value of a residential property you already own. It is not available on HDB flats, it is capped on both tenure and loan-to-value, and it usually faces the TDSR test. Here is what MAS sets.

What it is

MAS defines mortgage equity withdrawal loans (MWLs) as loans secured against the value of the borrower's residential property. MAS says MWLs cannot be taken out on HDB flats and on ECs still within their minimum occupation period, which is why MSR does not apply to them. They are for private homes (and ECs after MOP).

The MAS limits for a new MWL

The LTV test counts the MWL together with any loan still outstanding on the same property and the CPF monies used to buy it. These limits apply to individuals and shell companies, for applications made on or after 6 July 2018. MAS's page on refinancing an MWL quotes different limits (80% and 60%), so check with your bank which limit applies to your situation.

Does TDSR apply?

Yes, for individuals, sole proprietorships and shell companies, with one big exception: TDSR does not apply if the MWL plus any other loan secured on the same property is 50% or less of the property's current market valuation. MAS's example: a $300,000 MWL on a $2,000,000 property with a $150,000 outstanding bank loan totals $450,000, which is 22.5% of value, so TDSR need not be calculated. In a January 2026 parliamentary reply, MAS said the exemption gives flexibility to homeowners who have substantially paid down their mortgage to meet cash flow needs. Where TDSR applies, see how TDSR is calculated.

Other rules to know

• Guarantor-borrower requirement applies to new MWL applications since 29 June 2013: if someone guarantees your loan because you fail TDSR, they are treated as a co-borrower. See co-borrower and guarantor rules.
• The borrower-mortgagor requirement does not apply to MWLs.
• Banks must still do a holistic credit assessment of your ability to repay, income, financial assets and other obligations, and consider the collateral. MAS cautions consumers to be prudent, particularly if using an MWL to buy overseas property.

Things to weigh before you borrow

• CPF used on the property counts toward the LTV test and, when you sell, must be refunded with accrued interest; see CPF accrued interest.
• You are adding debt secured on your home. If you cannot service it, the home is at risk; see negative equity if values fall.
• Refinancing an MWL has its own rules; compare with the general refinancing guide.
• Interest on a loan is deductible against rent only if it was taken to buy the rented property; see rental income tax.

FAQ

Related guides

• Paying Your HDB Loan: CPF, GIRO and Age 55
• Using CPF for Housing: What OA Pays, Valuation, Age 55
• Lease Buyback vs Silver Housing Bonus for Seniors

Figures current as of October 2026, from MAS pages. MAS limits are minimums for banks; banks may lend less. This guide is general information only and is not financial advice. Borrowing against your home carries risk, so consider independent advice.