1. What is a Property Loan Calculator for Singapore?

Definition: This calculator estimates the monthly mortgage payment for property loans in Singapore based on loan amount, interest rate, and loan tenure.

Purpose: It helps home buyers and property investors in Singapore plan their finances by calculating monthly mortgage obligations.

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 divided by 12)
• \( n \) — Total number of payments (loan term in years × 12)

Explanation: The formula accounts for both principal and interest components of each payment over the loan term.

3. Importance of Mortgage Calculation

Details: Accurate mortgage calculations help borrowers understand affordability, compare loan options, and plan long-term finances.

4. Using the Calculator

Tips: Enter the loan amount in SGD, annual interest rate (default 2.5%), and loan tenure in years (default 25). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What's the typical interest rate in Singapore?
A: As of 2023, housing loan rates in Singapore typically range from 2.5% to 4.5% depending on loan type and market conditions.

Q2: What's the maximum loan tenure in Singapore?
A: For private properties, maximum tenure is typically 35 years or until age 65-75, whichever comes first.

Q3: Does this include property taxes or insurance?
A: No, this calculates only the principal and interest components of the mortgage payment.

Q4: How does TDSR affect my loan amount?
A: Singapore's Total Debt Servicing Ratio (TDSR) limits your monthly debt obligations to 55% of gross income, which may reduce your eligible loan amount.

Q5: What about HDB loans vs bank loans?
A: HDB concessionary loans have different terms (currently 2.6% rate) and requirements compared to bank loans.