How Mortgages Work in Singapore
A Singapore housing loan — from a bank, a licensed finance company, or HDB's concessionary scheme — amortises on a reducing balance: the monthly instalment is fixed, interest accrues monthly on what you still owe, and the principal share of each payment grows until the balance reaches zero. That structure is what this calculator models, from the property price and your down payment through to the year-by-year schedule. CPF Ordinary Account savings can fund part of the down payment and the monthly instalments, subject to CPF Board rules and the property's remaining lease — the calculator treats down payment as one figure whether it is cash, CPF or a mix.
With the example inputs — an S$800,000 property, 25% down, the illustrative 3.00% rate over 30 years — the loan is S$600,000, the instalment about S$2,529.62 a month and total interest roughly S$310,700: more than half the price again, paid over the term. Shorten the term to 25 years and the instalment rises about S$316 while total interest falls by roughly S$57,000. The term-versus-instalment trade is the biggest lever on this page — run your own numbers before signing anything.
Fixed, floating and HDB concessionary packages
Bank packages split into fixed-rate lock periods — the rate holds for an initial period, then the package usually moves to floating — and floating packages commonly pegged to a benchmark such as SORA plus the bank's spread, reset on a schedule set out in the letter of offer. This calculator holds whatever rate you enter constant for the whole term, which is exact for a full-term fixed rate and a clearly-labelled simplification otherwise. HDB concessionary loans are priced at a published margin above the CPF Ordinary Account interest rate, with a 75% maximum LTV and a 25-year maximum tenure, subject to HDB's eligibility criteria — enter the published rate and select the HDB loan type for the matching guidance.
The loan-to-value rules, in plain language
A first housing loan from a financial institution is generally capped at 75% loan-to-value, with tighter limits where the tenure exceeds 30 years — or 25 years for an HDB flat — or the loan extends beyond the relevant borrower age threshold. HDB concessionary loans carry their own 75% limit. The calculator reports your LTV against these rules as guidance — it never blocks a value, because the point is to see the consequences, not to police inputs. A loan-to-value above the limit means a larger down payment would be required in practice.
What the calculator leaves out
Stamp duties are deliberately not computed: Buyer's Stamp Duty is tiered by price, Additional Buyer's Stamp Duty depends on your buyer profile and property count, and both schedules are set by IRAS and change over time — enter your own estimate in the buying-costs field instead. Fire insurance, mortgage reducing term assurance, legal and valuation fees, and the MSR/TDSR screens all sit outside this page's maths. The Singapore Home Affordability Calculator handles the income side with those ceilings built in.
Frequently Asked Questions
What rate should I enter?
Enter the annual rate from your letter of offer, the package sheet your bank quoted, or HDB's published concessionary rate. The 3.00% pre-filled is an illustrative example only — NOT a current Singapore market rate. Finance Atlas never pre-fills a market rate, because mortgage pricing moves with policy and competition.
What is the maximum loan-to-value in Singapore?
A first housing loan from a financial institution is generally capped at 75% of the purchase price, with tighter limits where the tenure exceeds 30 years (25 years for an HDB flat) or the loan extends beyond the relevant borrower age threshold. HDB concessionary loans: 75%. The remaining share is your down payment — cash and, where the rules allow, CPF Ordinary Account savings.
Does the calculator include TDSR and MSR?
No — those are income screens, and this page prices a loan you have already chosen. TDSR caps property loans from financial institutions at 55% of gross monthly income across all debt obligations; MSR caps HDB-flat and EC loans at 30%. The Home Affordability Calculator works backwards from those ceilings instead.
How do CPF savings affect the calculation?
CPF Ordinary Account savings can fund part of the down payment and monthly instalments, subject to CPF Board rules and remaining-lease limits. The calculator treats the down payment as one figure regardless of source — so if S$150,000 of a S$200,000 down payment comes from CPF, the instalment maths is unchanged; only your cash-outflow differs.
Why isn't stamp duty calculated?
Because the schedules belong to IRAS and change with policy — BSD is tiered by price and ABSD depends on your profile and property count. Presenting a frozen schedule would mislead. Enter your own estimate in the buying-costs field; the IRAS website publishes the current rates.
What happens if my floating rate rises?
This model holds your entered rate constant, so a rise is not projected — treat the totals as a snapshot. A useful stress test: re-run the page with a higher rate and compare instalments. For floating packages the letter of offer sets the reset schedule; the benchmark and spread determine where the rate lands.
Related Singapore Calculators
- Singapore Home Affordability Calculator — work backwards from income to price
- Singapore Loan Repayment Calculator — extra payments and their interest savings
- Singapore Car Loan Calculator — OMV-based loan limits for vehicles
- Singapore Loan Affordability Calculator — unsecured borrowing capacity
Disclaimer: Finance Atlas is not a bank, licensed moneylender, finance company, card issuer or financial adviser in Singapore. This calculator provides educational estimates only and does not constitute financial advice, a credit offer or a recommendation of any product. Confirm exact figures, rates, fees and eligibility criteria with your lender, issuer or bank.