1. What is a Home Loan Calculator?

Definition: This calculator estimates the monthly mortgage payment based on loan amount, interest rate, and loan term using the standard amortization formula.

Purpose: It helps home buyers in Singapore understand their potential mortgage obligations and plan their finances accordingly.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M \) — Monthly payment (SGD)
• \( P \) — Loan principal amount (SGD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)

Explanation: The formula calculates the fixed monthly payment required to fully amortize the loan over its term.

3. Importance of Mortgage Calculation

Details: Accurate mortgage calculations help borrowers understand affordability, compare loan options, and plan long-term budgets in Singapore's property market.

4. Using the Calculator

Tips: Enter the loan amount in SGD, annual interest rate (common rates in Singapore range from 1.5% to 3.5%), and loan term (typically 25-30 years).

5. Frequently Asked Questions (FAQ)

Q1: What's the typical loan term in Singapore?
A: Most HDB loans have 25-year terms, while private property loans may extend to 30-35 years, subject to age limits.

Q2: How does Singapore's interest rate compare?
A: Singapore mortgage rates are typically pegged to SIBOR, SOR, or fixed rates, currently ranging 1.5%-3.5% annually.

Q3: What additional costs should I consider?
A: Remember to factor in property tax, insurance, maintenance fees, and possible Additional Buyer's Stamp Duty (ABSD).

Q4: How does HDB loan differ from bank loan?
A: HDB loans have a fixed 2.6% rate (as of 2023) and different eligibility criteria compared to bank loans.

Q5: Can I include CPF in my calculations?
A: Yes, your CPF Ordinary Account can be used for downpayment and monthly payments, but this calculator shows the gross amount before CPF deductions.