AIP and IPA are the same thing, banks simply use different names for it. It is the bank's assessment of how much it is prepared to lend, based on your documented income, existing debt commitments, and your Credit Bureau Singapore record. It is not the final loan offer, but it is a realistic preview of your ceiling.
It matters because of timing. In Singapore, exercising an Option to Purchase commits cash and a legal obligation before the bank issues its final loan approval. If the eventual loan offer comes in lower than expected, the shortfall has to be found in cash at short notice, or the option fee can be lost. Getting an AIP or IPA before serious viewings removes that risk.
It typically stays valid for around 30 days, though this varies by bank, and lenders do not extend it once it lapses, a fresh application is needed. Getting 2 to 3 from different banks also lets a buyer compare packages before committing to one lender.
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Book a free 30 minute callWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.