It's a simple question, but think about it for a moment.

If your income isn't predictable or if there's a chance you might get laid off in the next year or two, would you still commit to a 20-year mortgage?

For most people, the honest answer is no. And that hesitation says a lot about how job security has become an increasing barrier to homeownership. Let's dive straight into it.

Decades ago, the career sequence was clear: get a full-time job, get promoted once in a while, stay in the same company until you retire, then collect your pension. All while having confidence you could pay your mortgage every single month.

Well... those days are long gone.

Nowadays, staying in the same job for 20 years is rare. Job-hopping is the new normal. One by one, familiar faces disappear, until you suddenly realise the entire team is made up of new people within just a few years.

In fact, according to the 2026 Global Talent Barometer report, which surveyed 515 workers in Singapore between September and October 2025, 73% of Singaporean employees were actively exploring new job opportunities, even though most plan to stay with their current employer for now.

It's not that people love updating their LinkedIn and JobStreet profile every other year. It's that they face burnout, the fear of being replaced by AI, and the very real risk of getting caught in the next round of corporate restructuring.

Freelance and project-based contracts are also far more common now. And while the pay can look good on paper, there are risks too. Lose a client or a project = lose your income. There's no notice period, no severance package, no guarantee the next gig comes in time.

There are systemic issues in our current job market. When 46% of Singaporean workers say they don't feel secure in their jobs for the next six months, it's a real problem.

At its core, buying a home is a long-term financial commitment. In Singapore, typical housing loans stretch 20 to 30 years, not to mention the significant down payment. So it's natural to put off such a big purchase if you're unsure you can keep up.

Plenty of studies have confirmed that employment insecurity can delay or reduce the probability of entering homeownership. In plain terms: if people fear losing income or can't predict their next paycheque, they're more likely to postpone buying a home, even if prices or mortgage rates are favourable. That's also because frequent job changes or short employment history can lead to tighter borrowing limits.

Essentially, banks and financial institutions want to make sure you can manage your mortgage in the long run. And although government subsidies and CPF help many people get past the down payment hurdle, lenders still assess your employment history and contract duration.

Self-employed, contract, or variable income earners often face additional scrutiny and "haircuts" to their income. This means lenders count a reduced portion of that income when calculating how much you can borrow. And the less you can borrow, the bigger the down payment.

On top of that, for those who don't have job security, emergency funds are usually reserved for worst-case scenarios: covering daily expenses if a contract ends, a client disappears, or they get laid off. It would be hard to justify diverting any of that toward a down payment or mortgage repayment.

Don't give up hope just yet. You don't have to live with your parents or rent forever, but you do need a good strategy.

1. Build a "rainy day" buffer

Lenders look at your Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) and so should you. Having 6-12 months of savings helps you weather layoffs or income gaps without missing mortgage payments. This cushion also boosts your mortgage application strength. Of course, this doesn't mean you'll automatically get rejected. It could also mean a smaller loan or a higher interest rate.

But beyond loan approval, it will also give you a peace of mind if you know you can handle your mortgage comfortably.

2. Strengthen your employment profile

Banks prefer predictable income streams. If you're freelancing or on short contracts:

• Document consistent earnings over 2 years.

• Consider longer retainer contracts with clients where possible.

• Get multiple income streams

Most lenders will still apply an income haircut for variable income, but anything you can do to make your earnings look stable on paper improves borrowing margins.

3. Leverage government support

Even if you're self-employed or in contract work, housing grants and CPF financing options still apply. These things exist to help Singaporeans own homes, so use them to your advantage.

4. Consider co-ownership

Buying a home doesn't have to be a solo mission. Purchasing with a spouse, partner, sibling, or even a parent can make a huge difference to affordability and loan approval. A second income helps strengthen your borrowing power and spreads out the risk. And if one person's income dips, the household doesn't immediately come under pressure.

5. Start small

You don't have to buy your "forever home" right away. Starting with a smaller or more modest property lowers your financial exposure and monthly commitment, which matters a lot when income isn't guaranteed. Think of it as getting your foot in the door. As your career stabilises and income becomes more predictable, you can always upgrade later. It's more important to seize the moment and just start, rather than wait around until you're "ready". Think of it as your starting position, not your end goal.

If you don't have job security, the hesitation to buy a home isn't irrational. It's completely natural. A 20- or 30-year mortgage is a long promise to make when your income doesn't feel guaranteed, and pretending otherwise doesn't help anyone.

But there's another risk that doesn't get talked about as much: waiting until you feel completely "ready."

Most people never wake up one day feeling 100% secure. Jobs change. Industries evolve. Life happens. And while you're waiting for the perfect moment, prices move, policies shift, and opportunities quietly pass by. What starts as "I'll wait one more year" can easily turn into five.

Buying a home today isn't about eliminating uncertainty. It's about understanding how much risk you can realistically take on, and structuring your decisions so they don't derail your life if things don't go perfectly.

For those who feel stuck between wanting to move forward and not wanting to make a mistake, it may help to hear how market conditions, policies and financing realities are shaping up in the near future. If you're seeking clarity, join us at our upcoming Consumer Empowerment Seminar (CES) on 28 February, where you can hear the full breakdown of what lies ahead and what different buyer profiles should realistically be considering.

You don't have to make any decisions yet. Sometimes, the smartest first step is simply to get the right perspective before deciding when, or whether, to move.

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