S$650,000 Home Loan: Monthly Repayment and Total Interest
A S$650,000 home loan at 2.8% over 30 years costs S$2,670.81 a month. Over the full term you repay S$961,493.00, of which S$311,493.00 is interest.
Repayment by tenure
| Tenure | Monthly | Total interest |
|---|---|---|
| 20 years | S$3,540.15 | S$199,637.10 |
| 25 years | S$3,015.18 | S$254,555.27 |
| 30 years | S$2,670.81 | S$311,493.00 |
If rates change
| Rate | Monthly instalment |
|---|---|
| 2% | S$2,402.53 |
| 2.5% | S$2,568.29 |
| 3% | S$2,740.43 |
| 3.5% | S$2,918.79 |
| 4% | S$3,103.20 |
| 4.5% | S$3,293.45 |
Income needed
Under the 30% Mortgage Servicing Ratio for HDB flats, an instalment of S$2,670.81 needs a gross household income of at least S$8,902.71 a month. Under the 55% TDSR, it needs at least S$4,856.03 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 must be paid within 14 days of signing, so have the cash ready before you exercise the option.
- HDB loans are capped at 25 years and must be fully repaid by age 65.
- Using CPF for housing reduces what is left for retirement, and you must refund the amount used plus accrued interest when you sell.
- Stamp duty is based on the purchase price or market value, whichever is higher.
Background
Beyond the price, buyers should budget for legal fees, valuation, home insurance, renovation and furnishing. Running the figures in advance helps you decide how much cash to hold back and whether a smaller loan or longer tenure makes more sense.
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.
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stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.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
- Property Affordability Calculator: Estimates the biggest loan and property price your income supports under TDSR, using the stress-test rate banks apply.
- Rental Yield Calculator: Measures the return from rent before and after costs such as property tax, maintenance fees and agent fees.
- Home Loan Refinancing Calculator: Compares your current mortgage with a new rate to show the monthly saving and how long switching costs take to recover.
- Property Downpayment Calculator: Splits the downpayment into cash and CPF and shows the remaining loan.
Model your own loan in the S$650,000 Home Loan Repayment Calculator.
Run your own numbers: S$650,000 Home Loan Repayment Calculator