Singapore Housing Loan Calculator

Monthly Payment Formula:

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

Monthly Payment (SGD):

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1. What is a Singapore Housing Loan Calculator?

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

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

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula:

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

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 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.

4. Using the Calculator

Tips: Enter the loan amount in SGD, annual interest rate (default 2.6%), 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, HDB loan rates are around 2.6%, while bank rates vary between 3-4%.

Q2: What's the maximum loan tenure in Singapore?
A: HDB loans max at 25 years, while bank loans can go up to 30 years (or age 65-70).

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

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

Q5: What's the minimum downpayment in Singapore?
A: For HDB loans it's 10%, while bank loans require 25% (5% cash, 20% CPF/cash).