S$600,000 Home Loan: Monthly Repayment and Total Interest
A S$600,000 home loan at 2.8% over 30 years costs S$2,465.37 a month. Over the full term you repay S$887,532.00, of which S$287,532.00 is interest.
Repayment by tenure
| Tenure | Monthly | Total interest |
|---|---|---|
| 20 years | S$3,267.83 | S$184,280.40 |
| 25 years | S$2,783.25 | S$234,974.10 |
| 30 years | S$2,465.37 | S$287,532.00 |
If rates change
| Rate | Monthly instalment |
|---|---|
| 2% | S$2,217.72 |
| 2.5% | S$2,370.73 |
| 3% | S$2,529.62 |
| 3.5% | S$2,694.27 |
| 4% | S$2,864.49 |
| 4.5% | S$3,040.11 |
Income needed
Under the 30% Mortgage Servicing Ratio for HDB flats, an instalment of S$2,465.37 needs a gross household income of at least S$8,217.89 a month. Under the 55% TDSR, it needs at least S$4,482.48 with no other debts. Banks test affordability at a higher stress-test rate, so the real requirement is higher for bank loans.
Things to check
- Stamp duty is based on the purchase price or market value, whichever is higher.
- HDB loans are capped at 25 years and must be fully repaid by age 65.
- Banks test your TDSR at a stress-test rate, not the advertised rate, so your borrowing limit is lower than you might expect.
- Seller's Stamp Duty can wipe out the gains on a quick resale, so check your holding period before selling.
Background
Stamp duties are paid upfront. Buyer's Stamp Duty applies to every purchase at tiered rates up to 6%, while ABSD depends on the buyer's residency status and how many residential properties they already own. Sellers who dispose of a property within the holding period pay Seller's Stamp Duty.
Most Singaporeans live in HDB flats, which can be financed with an HDB concessionary loan at 0.1% above the CPF Ordinary Account rate or with a bank loan. Private property must be financed with a bank loan, and banks offer fixed, floating and SORA-pegged packages.
CPF Ordinary Account savings can pay for the downpayment, stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.
Related calculations
- HDB Loan Calculator: Calculates monthly repayments on an HDB concessionary loan, which is pegged at 0.1% above the CPF Ordinary Account rate (2.6% a year).
- Home Loan (Mortgage) Calculator: Estimates monthly repayments on a bank home loan for private property or HDB flats.
- Mortgage Servicing Ratio (MSR) Calculator: MSR caps the instalment on HDB flats and ECs bought from developers at 30% of gross monthly income.
- Total Debt Servicing Ratio (TDSR) Calculator: TDSR limits all monthly debt repayments to 55% of gross monthly income when you take a property loan.
Model your own loan in the S$600,000 Home Loan Repayment Calculator.
Run your own numbers: S$600,000 Home Loan Repayment Calculator