PropertySmart SG

Singapore Property Affordability Calculator

Determine the maximum property price you can likely afford based on your financial situation.

This means your downpayment will be (100 - LTV)%.

Understanding Your Affordability

This calculator helps estimate the maximum property price you might be able to afford in Singapore based on key financial inputs. It primarily considers the Total Debt Servicing Ratio (TDSR) and your available downpayment.

Total Debt Servicing Ratio (TDSR)

The TDSR is a crucial regulation by the Monetary Authority of Singapore (MAS). It states that your total monthly debt obligations (including the potential new home loan, car loans, credit card payments, student loans, etc.) cannot exceed 55% of your gross monthly income. This calculator uses this 55% limit to determine the maximum monthly mortgage payment you can handle, which in turn determines the maximum loan you might qualify for.

Mortgage Servicing Ratio (MSR) - For HDB & ECs

If you are purchasing an HDB flat or an Executive Condominium (EC) directly from a developer, an additional limit called the Mortgage Servicing Ratio (MSR) applies. The MSR caps your monthly mortgage repayment for that specific property at 30% of your gross monthly income. This calculator focuses on TDSR for general affordability; for HDB/EC purchases, ensure your estimated monthly payment also fits within the MSR.

Loan-to-Value (LTV) and Downpayment

The LTV ratio determines the maximum percentage of a property's value that a bank can lend you. For example, a 75% LTV means you need a 25% downpayment. Your available cash and CPF for this downpayment is a critical factor. Even if you can service a large loan based on TDSR, if your downpayment funds are insufficient for the required percentage of the property price, your affordable property price will be lower. This calculator considers an assumed LTV (you can select common ones) to balance loan qualification with downpayment capacity.

Factors Affecting Affordability:

  • Income Stability & Sources: Lenders look for stable and verifiable income.
  • Credit Score: A good credit history is vital for loan approval and favorable interest rates.
  • Age: Affects maximum loan tenure (typically up to age 65 or 70).
  • Existing Financial Commitments: Higher existing debts reduce your capacity for a new mortgage under TDSR.
  • Interest Rate Fluctuations: If you opt for a floating rate loan, your monthly payments can change. Banks often use a higher "stress-test" interest rate when assessing your application.

After estimating your affordability, you can explore stamp duty costs with our Stamp Duty Calculator or overall purchase expenses with the Full Property Buying Calculator.

Affordability FAQs

How accurate is this affordability calculator?

This calculator provides an estimate based on the inputs you provide and standard regulatory limits like TDSR. However, actual loan approval and amounts are subject to the bank's detailed credit assessment, property valuation, and prevailing policies. It's a good starting point for your planning.

What if my calculated affordable property price seems too low?

You could explore several options: increasing your available downpayment (through savings or gifts, if applicable), reducing your existing monthly debt commitments, looking for properties in a lower price range, or considering a longer loan tenure (if your age permits and you're comfortable with paying more interest over time).

Should I get an In-Principle Approval (IPA) from a bank?

Yes, it's highly recommended. An IPA from a bank will give you a more concrete idea of how much they are willing to lend you based on your specific financial situation, before you start seriously searching for properties. This helps you narrow down your property search to what you can realistically afford.