Hi there, thanks for writing to us on AskGuru.
Unfortunately, we do not have sufficient information such as your age, monthly commitment and available cash on hand.
Assuming you are both 30-years-old with $100,000 in cash on hand, $200,000 in CPF, and a monthly commitment of $10,000, the property you can afford is $1,187,707
You may use our affordability calculator here: https://www.propertyguru.com.sg/mortgage/affordability-calculator
When purchasing a private property, you will be subjected to the Total Debt Service Ratio (TDSR), Valuation Limit and Withdrawal Limit. Your TDSR should be less than or equal to 60%. The TDSR formula is as follows:
(Borrower's total monthly debt obligations / Borrower's gross monthly income) x 100%
Assuming you have a total monthly debt of $2,000, this is your TDSR:
$2,000/$10,000 x 100% = 20%
Let's assume you decide to purchase a $1 million condominium, here are the financial calculations:
You will be subjected to Valuation Limit. Valuation Limit is the lower of the purchase price or valuation at the time of purchase. Assuming the valuation and purchase price is $1 million, your Valuation Limit is $1 million.
For a bank loan, you will be subjected to Withdrawal Limit: 120% of the Valuation Limit.
120% x $1 million = $1.2 million
$1.2 million is your Withdrawal Limit.
You will also need to set aside a Basic Retirement Sum of $93,000 each.
Assuming you can get 75% loan ($750,0000) over 30 years, you will need to place a downpayment of 5% in cash ($50,000) and 20% in cash and/or CPF ($200,000). Your monthly mortgage will work out to $2,772 which is still within your TDSR. You can use our mortgage calculator here: https://www.propertyguru.com.sg/mortgage/calculators/mortgage-repayment
With a Withdrawal Limit of $1.2 million, you will hit the limit in 24 Years 1 month. If you are unable to meet your Basic Retirement Sum of $93,000, you will need to pay your mortgage in cash.
You will also need to calculate your Buyer's Stamp Duty (BSD): $24,600
We advise you to engage an experienced agent who can assist you in your financial calculation.
Hope this answers your question.