How much can I borrow?
The largest housing loan the TDSR, MSR and loan-to-value limits allow on your income, and the price that loan lets you pay.
How the limit is worked out
A bank tests your loan against up to three limits and lends the smallest. TDSR caps all your monthly debts, this loan included, at 55% of gross monthly income. MSR caps the instalments on all property loans at 30% of income, for an HDB flat or an EC bought from the developer. LTV caps the loan at a share of the price or valuation, whichever is lower (MAS).
The instalment is not worked out at your actual rate. MAS makes banks use the higher of 4% and the rate after any lock-in, for both TDSR and MSR (MAS). The calculator turns the monthly room left under each limit into a loan at that rate over your tenure.
The highest price is the income-based loan divided by the LTV limit. Pay more and the extra comes out of your cash and CPF, not the bank.
Questions
What is the TDSR limit in Singapore?
55% of gross monthly income, in force from 16 Dec 2021. It covers every monthly debt: the new loan, other property loans, car loans, personal loans and card minimums.
Does MSR apply to my purchase?
MSR applies to a bank loan for an HDB flat, and to an EC bought from the developer while its minimum occupation period runs. The cap is 30% of income for all property loans. An HDB concessionary loan has its own 30% cap, assessed at 3% (rule history). A private home or a resale EC past its minimum occupation period has no MSR.
How do banks count bonus and commission?
MAS requires a haircut of at least 30% on variable income such as bonus, commission and allowances, and on rental income. Banks take the monthly average of the last 12 months (MAS). So S$1,000 a month of bonus counts as S$700.
What are the LTV limits?
75% for a first housing loan, 45% if you have one loan outstanding and 35% with two or more. The limit drops to 55%, 25% and 15% if the tenure is over 30 years (25 for an HDB flat) or the loan runs past age 65. An HDB loan lends up to 75% (MAS).
How is age worked out for joint borrowers?
Banks use the income-weighted average age. A borrower aged 60 earning S$8,000 and one aged 30 earning S$10,000 count as about 43, because the younger one brings more of the income. Tenure plus that age decides whether the lower LTV limit applies.
What is the longest loan I can take?
35 years from a bank for a private home or EC, 30 years for an HDB flat. An HDB loan runs up to 25 years, cut to 65 minus the borrowers' average age and to the flat's remaining lease minus 20 years. This calculator applies the age cut; check the lease yourself.
How much cash do I need?
With a bank loan, at least 5% of the price in cash on a first loan (10% if the lower LTV applies), and 25% on a second or later loan. The rest of the down payment can come from CPF. An HDB loan needs no minimum cash. Stamp duty is extra: try the stamp duty calculator.
Why is the loan smaller than my bank's quote suggests?
Banks may count income differently, hold a higher haircut, or test at a higher rate. The figure here uses the MAS minimums. An in-principle approval from your bank is the number to plan on.