Unlock Your Dream Home: Accurate Home Loan Eligibility Calculator for Singapore

The maximum Total Debt Servicing Ratio (TDSR) is set by regulatory guidelines in Singapore, capping the amount of a borrower's gross monthly income that can be used for debt repayment at 55%. This limit helps ensure that individuals stay within their financials, maintaining a balance between their earnings and their debt obligations. Adhering to the maximum TDSR is crucial for securing loan approvals and achieving long-term financial stability. Using a TDSR calculator can assist you in assessing your financial position and ensuring compliance with these guidelines.

While the Total Debt Servicing Ratio (TDSR) encompasses all debt obligations of a borrower, the Mortgage Servicing Ratio (MSR) is specifically targeted at property loans. The MSR is particularly relevant for those purchasing Housing Development Board (HDB) flats and executive condominiums directly from developers, as it caps the percentage of a borrower’s gross monthly income that can be spent on housing loans at 30%. This distinction ensures that housing expenses remain manageable and do not jeopardise overall financial stability.

The Total Debt Servicing Ratio (TDSR) formula can be calculated as follows:

TDSR = (Borrower’s Total Monthly Debt Obligations / Borrower’s Gross Monthly Income) × 100%

Buyer Stamp Duty (BSD) is a tax levied on the purchase of property in Singapore. The amount payable is based on the property's purchase price or market value, whichever is higher.

The current BSD rates for residential properties are tiered as follows:

• 1% for the first $180,000
• 2% for the next $180,000
• 3% for the next $640,000
• 4% for the next $500,000
• 5% for the next $1,500,000
• 6% for the remaining amount

For non-residential properties, the rates are:

• 1% for the first $180,000
• 2% for the next $180,000
• 3% for the next $640,000
• 4% for the next $500,000
• 5% for the remaining amount

Understanding these rates is crucial for accurately estimating the additional costs associated with your property purchase and ensuring your financial planning accounts for all necessary expenses. A loan eligibility calculator can help you manage these calculations and plan effectively.

Home loan eligibility in Singapore is primarily determined by several key factors. These include your TDSR, which should not exceed 55%, credit history, age, income stability, and other financial commitments. Additionally, banks consider the loan-to-value (LTV) ratio, which is capped at 75% of the property's value or purchase price, whichever is lower. Meeting these criteria is essential for securing a home loan.

The amount of home loan you can get is primarily determined by the loan-to-value (LTV) ratio. This ratio indicates the maximum mortgage loan a bank can extend to you as a percentage of the property's value or purchase price, whichever is lower.

For a first private property, you can typically borrow up to 75% of the property's value if the loan term is 30 years or less and does not extend beyond age 65. You have the option to stretch the loan tenure to 35 years or extend it to age 75; however, the LTV ratio cap decreases to 55%.

For a first HDB property, you can typically borrow up to 75% of the property's value if the loan term is 25 years or less and does not extend beyond age 65. You have the option to stretch the loan tenure to 30 years or extend it to age 75; however, the LTV ratio cap decreases to 55%.

Understanding your LTV ratio is useful in determining the loan amount you can afford, and using a home loan eligibility calculator can provide valuable insights.

When calculating the Total Debt Servicing Ratio (TDSR), several important factors are considered:

1. Debt Obligations: This includes all your existing debts, such as car loans, personal loans, and other mortgages.
2. Income Level: Fixed and variable income components, like bonuses or commissions, are assessed.
3. Internal Stress Test: Banks apply a "stress test" to ensure that your repayment capacity remains within TDSR limits, stress tests are impacted by market conditions.
4. Variable Income Adjustment: For self-employed individuals with variable income, a 30% haircut is applied to account for income variability.
5. Joint Applications: When applying jointly, the income-weighted average age (IWAA) of both borrowers is used to determine the maximum loan tenure.

Understanding these factors is essential for accurately determining your borrowing capacity and ensuring that your debt remains manageable.

If your TDSR exceeds 55%, it is crucial to take steps to reduce your debt or increase your income. Paying off some loans can help lower your total debt obligations, while seeking additional income sources can improve your TDSR. Consulting with mortgage advisors, such as those at The Loan Connection, can provide you with tailored strategies to enhance your loan eligibility and achieve a more manageable debt-to-income ratio.

While the home loan eligibility calculator in Singapore provides a reliable estimate, it is important to consult a mortgage advisor for a comprehensive assessment. Mortgage advisors can offer personalised advice tailored to your financial situation, whether you need to refinance an HDB loan or secure a private house loan. This ensures you make the most informed borrowing decisions.

Effectively scheduling your repayments involves clearly understanding your cash flow and utilising tools like amortisation schedules to plan your payments. Regularly reviewing your repayment plan is advisable to adjust for any changes in income or expenses, ensuring that you stay on track with your financial commitments.

A credit score is a numerical measure used by banks to evaluate your creditworthiness. It significantly influences loan approval decisions and the interest rates offered to you. Maintaining a good credit score is not just important, it's essential for securing favourable loan terms and demonstrates responsible financial management.