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Find your budget so you can purchase your
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Affordability Calculator Singapore, Simplifying affordability with an affordability calculator

Calculating your affordability with a mortgage affordability calculator

Know your affordability

Mortgage affordability is the ability to repay your mortgage every month.
There are many factors that could affect your affordability to own a home, such as student loans, car loans, debts, credit card bills, and regular household expenses.
By monitoring your expenses, you will have a clearer idea on what you are spending on every month.

Stay within the regulatory limits of MSR, TDSR

According to the Monetary Authority of Singapore, the Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR) is capped at 30% and 55% respectively.
MSR is the portion of the borrower's gross monthly income that is limited to the monthly repayment of all property loans, including the housing loan that is being applied for. MSR only applies to those buying HDB flats and Executive Condominiums (ECs).
For private properties, TDSR is the portion of the borrower's gross monthly income that is contributed by all monthly debt obligations, including the housing loan that is being applied for.
These measures are put in place by the government to ensure that individuals have sufficient funds to repay all their debts.

Affordability calculator Singapore: Calculate your mortgage

Our mortgage affordability calculator gives you a visualisation of how much you can actually afford before deciding on a home loan package.
By understanding your affordability, you will be able to find a home that is within your means.
Live comfortably in your dream home without the stress of not being able to repay the monthly mortgage.

House hunting with peace of mind

After finding your mortgage affordability, you can set aside a budget for your dream house. Of course, don't forget about other miscellaneous expenses such as maintenance fees, home insurance, and property taxes.
Having your budget in mind means you can not only start the exciting process of house hunting, but you can also prioritise the needs and wants of your dream home. From location to size, use your mortgage affordability to help you focus on what is most important to you.

Be efficient and narrow your search to what you can afford

Searching for houses with a budget helps you to be effective in the house-hunting process.
Online real estate platforms like PropertyGuru let you use filters that limit the parameters of your search, (e.g., residential property, price range). Ultimately, the goal is to help you spend less time sifting through undesirable homes and spend more time on a targeted few that meet your needs.
Use our affordability calculator to measure your mortgage affordability today so that you can search for your house with confidence on PropertyGuru.

Helps with your retirement planning

There are several ways on which choosing a home within your affordability can help with your retirement planning.
An affordable home means keeping your overall cost of home ownership low. This translates to more savings for you to park in your retirement savings, which is crucial in retirement planning.
Finding a home of the right size and valuation also helps to keep living expenses low. This means more budget for other retirement expenses, such as travel and medical care.
With careful planning to purchase a home within your means, you will be able to pay off your mortgage before retirement. This reduces your debts and monthly expenses during those years while you are also saving up for retirement.
For a suitable home loan package and to get help finding the best mortgage rates, you may use our free-to-use mortgage tool, or speak to our friendly Mortgage Experts for personalised recommendations for your home ownership plans.

What affects your mortgage affordability

Valuation of home$500,000
Type of loan Bank loanBank loan
LTV limit75%
Down payment required$125,000
Down payment paid in cash$100,000
Down payment in cash/CPF$375,000
Loan tenure25 years
Interest rate2.44%
Monthly mortgage repayment$2,228

Valuation of your dream home

The higher the price of your dream home, the larger the mortgage loan you will need to take on. Not only does this mean a higher monthly mortgage repayment amount, it also impacts your TDSR. A higher TDSR will impact your ability to qualify for other loans.

Duration of financing your home loan

You get to choose how long you want to finance your home loan when you first sign your mortgage loan package.
Choosing a shorter loan tenure means having to grapple with higher monthly instalments when you are repaying the mortgage.
On the flip side, a longer loan tenure makes the monthly instalments more bite-sized. But beware that a longer tenure also means that you will end up paying more interest on your mortgage loan overtime.
Therefore, it is a balance between saving on mortgage interest and how tight you want your finances to be every month.
By speaking to our Mortgage Experts, they will be able to understand your financial situation and find a suitable mortgage loan package for you.

Bank loan interest rates

Interest rates have the most significant impact on your mortgage affordability.
Banks offer a range of attractive home loan packages for homebuyers.
As a borrower, you can choose between a floating rate package and fixed rate package to finance your home.
Naturally, there are pros and cons for each type of package. That's why it's important that you do your research to look for the best home loan interest rate deals on the market.
Make sure to use our mortgage affordability calculator to estimate how much interest you are paying over the lifetime of your mortgage loan.
PropertyGuru Finance's home loan tool can also assist you in comparing the different loan packages and interest rates.
Need help? Why not get in touch with our Mortgage Experts for some recommendations to reduce your mortgage repayment and keep your home affordable?

Affordability calculator Singapore: How to use our mortgage affordability calculator?

Know your earning capacity

Your earning capacity is your ability to earn money over a period of time. Simply use your current job salary as the benchmark as input into the mortgage affordability calculator.
If you are self-employed, you can look at your income over the past few years to determine your average annual income.

Review your monthly debt obligations

Your mortgage isn't just impacted by what you are about to borrow for your home. It's also affected by the existing debt that you have. Under the TDSR rule, only 55% of your monthly income can be used for mortgage repayment.
In short, it means that the more debt obligations you have, the higher chance you may exceed the TDSR ceiling. This in turn affects your overall mortgage affordability.
If you have existing debt obligations that you can clear, make sure to review them and clear them. Having more cash flow every month that's not going into existing debt obligations improves your overall mortgage affordability.

Keep track of how much cash and CPF you have

Your ability to pay off a mortgage depends just as much on your current savings as it does on your potential income in the future.
Having high income alone isn't enough to ensure your mortgage affordability. That's because Loan-to-Value (LTV) ratio limits the maximum amount that an individual can borrow for your home. The LTV for bank loans is 75% while the LTV for HDB housing loan is 80%.
In order to repay the remaining 25% and 20% of your HDB housing loan, you must have cash on hand (at least 5%) or funds in your CPF Ordinary Account (OA).
Therefore, you need to ensure that you have enough cash and CPF savings to make the down payment.