In-Principle Approval (IPA) / Letter of Offer (LO)
Different meaningsIn HDB's integrated housing-loan context, an IPA is an assessment of the eligible loan amount, while an LO is the financial institution's contractual mortgage-loan offer stating the terms and exact loan amount.
In-Principle Approval (IPA)
Use when
In HDB's integrated housing-loan service, you mean a participating financial institution's assessment of the housing-loan amount you are eligible for.
Example
“The buyer obtained an IPA before deciding how much to borrow.”
Letter of Offer (LO)
Use when
In the same HDB housing-loan context, you mean the financial institution's actual mortgage-loan offer stating the contractual terms and exact loan amount.
Example
“The buyer accepted the LO after reviewing the interest rate and loan terms.”
Quick check
treating an IPA as the final mortgage contract, using IPA and LO interchangeably, assuming the amount assessed at IPA stage is itself a final loan offer
Usage note
This guide is specifically about HDB's integrated housing-loan process with participating financial institutions; IPA may have other meanings in other government contexts.