Document background
The Mortgage Commitment Letter serves as a crucial intermediary document in Singapore's property financing process. It is issued after the lender's initial approval of a mortgage application but before the final loan documentation. The letter confirms the lender's intention to provide financing and outlines all material terms, including loan amount, interest rate, tenure, and conditions precedent. Under Singapore's regulatory framework, this document must comply with MAS guidelines on property financing, including TDSR and LTV limits. The Mortgage Commitment Letter typically remains valid for a specific period, during which the borrower must fulfill all stated conditions to proceed with the loan.
