What does pledging assets for a home loan mean?

Under the TDSR framework, eligible assets (SGD cash or fixed deposits) pledged with the lending bank for 48 months are converted into recognised income at full value: the amount ÷ 48 is added to your monthly income. $480,000 pledged adds $10,000/month of recognised income.

What is the difference between pledged and unpledged (shown) funds?

Pledged funds are locked with the bank for 48 months and recognised at 100%. Unpledged funds merely have to be shown — they stay liquid — but only 30% is recognised, so you need about 3.3 times the assets for the same loan effect.

How much extra loan does $48,000 pledged unlock?

About $115,000 at the 4% assessment rate over 30 years. The arithmetic: $48,000 ÷ 48 = $1,000/month of recognised income, of which TDSR lets 55% — $550 — service a loan; $550/month supports roughly $115,000 of stress-tested loan. Calculators that skip the 55% step overstate this by over 80%.

When is pledging a bad idea?

When your bottleneck is cash, not income. Pledged funds are locked for 48 months and can't be used for the downpayment or stamp duties — if those are what's constraining you, pledging makes the problem worse. Check which constraint binds before committing funds.

Pledging / Unpledging Calculator

Turn assets into loan capacity

When income alone doesn't clear TDSR, eligible assets can — pledged for 48 months at full value, or merely shown at 30%. Here's exactly what each route unlocks.

Your situation

Eligible assets

SGD cash or fixed deposits. Other assets take bank-specific haircuts.Loan shortfall to close (optional)

How much more loan you need than your income supports.Loan tenure

yrs

MAS assessment rate

Enter your assets, your loan shortfall, or both.

Pledging only helps when income is the bottleneck.

If your constraint is cash for the downpayment, pledging makes it worse. The Purchase Planner finds your real bottleneck.

Find my bottleneck Talk to TRIBE

How asset pledging works under TDSR

The TDSR framework lets borrowers without enough income — often retirees, business owners with lumpy earnings, or buyers between roles — qualify using assets instead. Eligible assets are amortised into a 48-month income stream: pledged with the lending bank, the full amount counts ($480,000 → $10,000/month); shown but not pledged, 30% counts ($480,000 → $3,000/month).

The step most calculators miss: the add-back raises recognised income, and the 55% TDSR cap still applies before it becomes loan capacity. One pledged dollar is 55 cents of instalment headroom, not a dollar. This calculator applies the cap — the figures here are what a banker would actually approve against.

Pledging solves an income bottleneck and only an income bottleneck. If cash for the downpayment is what limits you, locking funds away for 48 months is counterproductive — run the Purchase Planner to see which constraint binds, and the Affordability Assessment for your income-only baseline.

Frequently asked questions

What does pledging assets for a home loan mean?: Under the TDSR framework, eligible assets (SGD cash or fixed deposits) pledged with the lending bank for 48 months are converted into recognised income at full value: the amount ÷ 48 is added to your monthly income. $480,000 pledged adds $10,000/month of recognised income.
What is the difference between pledged and unpledged (shown) funds?: Pledged funds are locked with the bank for 48 months and recognised at 100%. Unpledged funds merely have to be shown — they stay liquid — but only 30% is recognised, so you need about 3.3 times the assets for the same loan effect.
How much extra loan does $48,000 pledged unlock?: About $115,000 at the 4% assessment rate over 30 years. The arithmetic: $48,000 ÷ 48 = $1,000/month of recognised income, of which TDSR lets 55% — $550 — service a loan; $550/month supports roughly $115,000 of stress-tested loan. Calculators that skip the 55% step overstate this by over 80%.
When is pledging a bad idea?: When your bottleneck is cash, not income. Pledged funds are locked for 48 months and can't be used for the downpayment or stamp duties — if those are what's constraining you, pledging makes the problem worse. Check which constraint binds before committing funds.

Indicative only. Asset eligibility, haircuts on non-cash assets, and pledge terms vary by bank; final approval rests with the lender under prevailing MAS rules. Not financial advice.