Home Loan (Mortgage) in Singapore: 5 Mistakes to Avoid
Estimates monthly repayments on a bank home loan for private property or HDB flats. The maths is not complicated, but a handful of errors come up again and again in this and related property & hdb calculations. Here is what to watch for.
Singapore's property market is shaped by cooling measures introduced since 2009, including Additional Buyer's Stamp Duty, loan-to-value limits and debt servicing ratios. These rules are adjusted when the market runs hot, so the numbers you see today may differ from what friends paid a few years ago.
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.
1. Forgetting the cash portion
Part of the downpayment must be in cash, and CPF cannot be used for it.
2. Assuming the bank will lend 75%
LTV falls to 45% for a second loan and is reduced further for long tenures or older borrowers.
3. Forgetting ABSD on a second property
Citizens pay 20% ABSD on a second residential property, which can be hundreds of thousands of dollars.
4. Ignoring SSD when selling early
Selling within four years of buying (for purchases from 4 July 2025) attracts Seller's Stamp Duty.
5. Using the price instead of the higher valuation
Stamp duty is charged on the higher of price or market value.
The correct method
Monthly instalment = P × r ÷ (1 − (1 + r)^−n).
For example, with these inputs:
- Loan amount (S$): 800,000
- Interest rate (% a year): 2.8
- Loan tenure (years): 30
the calculator returns:
- Monthly instalment: S$3,287.16
- Total interest: S$383,376.00
- Total repaid: S$1,183,376.00
Related calculations
- 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.
- Buyer's Stamp Duty (BSD) Calculator: Calculates Buyer's Stamp Duty on a Singapore residential property using the tiered rates from 1% to 6%.
The Home Loan (Mortgage) Calculator applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: Home Loan (Mortgage) Calculator