In Principle Approval for Housing Loan

Planning to buy a property? Take your first step by applying for In Principle Approval (IPA) here.

Tap on our experience to take care of your home loan, as our consultant will partner you throughout the process.

Apply Now to enjoy One-stop Service and Access to ALL Banks in Singapore.

How we can help

• Estimate how much loan you qualify
• Select banks based on rates and suitability
• Submit IPA Application
• Interpret IPA Results:
  • Maximum loan qualified
  • Monthly repayment amount
  • Maximum price you can afford

Frequently Asked Questions

What is a Housing Loan In Principle Approval?

In-principle approval (IPA) or Approval In Principle (AIP) is an indicative home loan approval provided by a bank. It is not a formal offer from the bank and most banks do not issue formal letter for IPA. IPA is normally communicated via email or verbally.

What is the Purpose of an In-Principle Approval?

The purpose of an IPA is to allow potential homeowners to confirm the loan amount they can qualify, which will help in the budgeting of the property value they can afford before they commit to the purchase of a new property.

Why is IPA important?

There are a number of reasons why IPA is important, namely:

1. Property Agents prefer pre-qualified buyers who have the ability to buy the property.

2. Buyers can focus and narrow down on the properties that they can afford without over-committing.

3. Buyers can have peace of mind with knowledge that the bank can grant them the required loan amount.

What is the validity period of an approved IPA application?

An approved IPA has a validity period of 7 days to 30 days, depending on banks. During this validity period, if your Option to Purchase is submitted to the bank, the bank will provide a formal letter of offer for your home loan provided there are no changes to your income or debt obligations. After the validity period expires, it is not necessary to apply for a new IPA application unless there are major changes to your profile, including change in employment, decrease in income, delay in repayment of existing loan and credit card commitments, increase in loan commitments, etc.. 

Can I submit an IPA application to multiple banks?

Yes, you may do so but it is not advisable unless you are unable to secure the required loan amount due to special circumstances. The application status of every bank that you submit the application will appear in your credit bureau, which can be viewed by banks. This may pose questions on your sincerity in your application with the bank or whether you are facing issues with the loan application. If there is no issue with the loan, it is not necessary to apply to multiple banks as the loan amount calculated by different banks are similar and should not vary by much given that MAS has fixed guidelines on debt service calculation.

Do I need to pay any fee for IPA application?

No, there is no fee payable.

Am I obligated to take up the loan from the bank that has given the approved IPA?

No, there is no obligation. If the rates from the IPA bank are no longer competitive, you are not obligated to take the loan from the bank. However, if you are taking the loan from the same bank which granted the IPA, the process can be faster.