Compare Home Loan Calculator Singapore

Monthly Payment Formulas:

\[ M1 = P \times \frac{r1 \times (1 + r1)^n}{(1 + r1)^n - 1} \] \[ M2 = P \times \frac{r2 \times (1 + r2)^n}{(1 + r2)^n - 1} \]

Loan Principal (SGD):

SGD

First Loan Annual Rate:

Second Loan Annual Rate:

Loan Term (Years):

years

First Loan Monthly Payment:

Second Loan Monthly Payment:

Monthly Difference:

Total Difference Over Loan Term:

Unit Converter ▲

Unit Converter ▼

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1. What is a Home Loan Comparison Calculator?

Definition: This calculator compares two home loan options in Singapore by calculating and comparing their monthly payments and total costs.

Purpose: It helps home buyers and property investors make informed decisions when choosing between different mortgage options.

2. How Does the Calculator Work?

The calculator uses the standard mortgage payment formula for each loan:

\[ M = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

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

Explanation: The calculator computes payments for both loans and shows the difference in monthly payments and total loan costs.

3. Importance of Loan Comparison

Details: Even small differences in interest rates can result in significant savings over the life of a home loan in Singapore's property market.

4. Using the Calculator

Tips: Enter the loan amount, two different annual interest rates, and loan term. The calculator will show monthly payments and total cost differences.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical home loan term in Singapore?
A: Most HDB and private property loans have terms of 25-30 years, with maximum terms depending on age limits.

Q2: How do interest rates affect total payment?
A: A 0.5% rate difference on a SGD 500,000 loan over 25 years amounts to ~SGD 45,000 in total savings.

Q3: Should I always choose the lower rate?
A: Consider other factors like lock-in periods, prepayment penalties, and whether the rate is fixed or variable.

Q4: What's the current SIBOR/SOR rate?
A: Check MAS or bank websites for current benchmark rates used for floating rate loans.

Q5: How does HDB loan differ from bank loans?
A: HDB concessionary loans have different eligibility criteria and typically higher rates than bank loans.