S$950,000 Home Loan: Monthly Repayment and Total Interest
A S$950,000 home loan at 2.8% over 30 years costs S$3,903.50 a month. Over the full term you repay S$1,405,259.00, of which S$455,259.00 is interest.
Repayment by tenure
| Tenure | Monthly | Total interest |
|---|---|---|
| 20 years | S$5,174.07 | S$291,777.30 |
| 25 years | S$4,406.81 | S$372,042.32 |
| 30 years | S$3,903.50 | S$455,259.00 |
If rates change
| Rate | Monthly instalment |
|---|---|
| 2% | S$3,511.38 |
| 2.5% | S$3,753.65 |
| 3% | S$4,005.24 |
| 3.5% | S$4,265.92 |
| 4% | S$4,535.45 |
| 4.5% | S$4,813.51 |
Income needed
Under the 30% Mortgage Servicing Ratio for HDB flats, an instalment of S$3,903.50 needs a gross household income of at least S$13,011.66 a month. Under the 55% TDSR, it needs at least S$7,097.27 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
- Budget for legal fees, valuation, renovation and moving costs on top of the downpayment and stamp duties.
- Stamp duty is based on the purchase price or market value, whichever is higher.
- Banks test your TDSR at a stress-test rate, not the advertised rate, so your borrowing limit is lower than you might expect.
- Using CPF for housing reduces what is left for retirement, and you must refund the amount used plus accrued interest when you sell.
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.
The Total Debt Servicing Ratio limits monthly debt repayments to 55% of gross monthly income for any property loan, and the Mortgage Servicing Ratio limits the housing instalment to 30% of income for HDB flats and new executive condominiums. Banks apply a medium-term interest rate in these tests rather than the rate you will actually pay.
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stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.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 Downpayment Calculator: Splits the downpayment into cash and CPF and shows the remaining loan.
- Buyer's Stamp Duty (BSD) Calculator: Calculates Buyer's Stamp Duty on a Singapore residential property using the tiered rates from 1% to 6%.
- Additional Buyer's Stamp Duty (ABSD) Calculator: Calculates ABSD by buyer profile and the number of residential properties owned, using the rates in force since 27 April 2023.
- Total Property Stamp Duty Calculator: Adds BSD and ABSD together so you know the full stamp duty bill before you sign an option to purchase.
Model your own loan in the S$950,000 Home Loan Repayment Calculator.
Run your own numbers: S$950,000 Home Loan Repayment Calculator