1. What is a Home Loan Calculator SG?

Definition: This calculator estimates the monthly mortgage payment for a home loan in Singapore based on principal amount, interest rate, and loan term.

Purpose: It helps prospective home buyers and property investors understand their monthly mortgage obligations before committing to a loan.

2. How Does the Calculator Work?

The calculator uses the standard mortgage 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 budget effectively, compare loan options, and ensure the loan is affordable before commitment.

4. Using the Calculator

Tips: Enter the loan amount in SGD, annual interest rate (default 3.5%), and loan term in years (default 25). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical interest rate in Singapore?
A: As of 2023, rates typically range from 3% to 4.5% for HDB loans and private bank loans.

Q2: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid over the loan's lifetime.

Q3: Does this include other housing costs?
A: No, this calculates only the principal and interest. Additional costs like property tax and insurance aren't included.

Q4: What's the maximum loan term in Singapore?
A: Typically up to 30 years for private properties and 25 years for HDB flats, subject to age limits.

Q5: How accurate is this calculator?
A: It provides a good estimate, but actual loan terms may vary based on your credit profile and lender policies.