IPA: In-Principle Approval for Your Home Loan

Glossary 3 min read Last reviewed
For: Students of the marketFirst-time buyers
Source: IRAS, MAS, URA
TL;DR
An In-Principle Approval (IPA), sometimes called Approval-in-Principle (AIP), is a non-binding indication from a bank of how much home loan you qualify for, based on your income, existing debts, an...
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Quick Definition
An In-Principle Approval (IPA), sometimes called Approval-in-Principle (AIP), is a non-binding indication from a bank of how much home loan you qualify for, based on your income, existing debts, and TDSR/MSR limits.

What Does It Mean?

An In-Principle Approval (IPA), sometimes called Approval-in-Principle (AIP), is a non-binding indication from a bank of how much home loan you qualify for, based on your income, existing debts, and TDSR/MSR limits. It is valid for around 30 days and lets you shop and make an offer with confidence. An IPA is not a loan guarantee — final approval follows a full application and property valuation.

Why It Matters

An IPA tells you your real budget before you fall in love with a property. Making an offer without one risks committing to an option fee you cannot finance — if the bank later approves less than expected, you could forfeit your deposit. Always secure an IPA before issuing or exercising an OTP.

Where to Find This on ShiokNest

Look for the tooltip icon next to this metric on ShiokNest for a quick reminder of its definition.

Official Sources

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Frequently Asked Questions

How long is an IPA valid?
An In-Principle Approval is typically valid for about 30 days. If it lapses before you buy, you can request a fresh one.
Is an IPA a guaranteed loan?
No. It is an indicative approval based on the information provided. Final approval depends on a full application, document checks, and the property valuation.
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This glossary article is auto-generated from ShiokNest's financial data and updated periodically. Rates and figures are current as of July 2026. Check official sources for the latest.

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Tags: Finance Glossary Mortgage

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