Property Affordability in Singapore: Your Questions Answered
These are the questions people ask most often about property affordability. Each answer is short; follow the links for the full detail.
What does a property affordability calculation tell me?
Estimates the biggest loan and property price your income supports under TDSR, using the stress-test rate banks apply.
What is the formula?
Max loan = present value of (55% × income − debts) over the tenure at the stress-test rate.
What do I need to enter?
Gross monthly income (S$), Existing monthly debts (S$), Stress-test interest rate (%), Loan tenure (years).
Should I rely on this before signing?
Use it to plan, then confirm the figures with your banker, lawyer or the IRAS stamp duty calculator before you exercise an option to purchase.
Can you show an example?
For example, with these inputs:
- Gross monthly income (S$): 12,000
- Existing monthly debts (S$): 500
- Stress-test interest rate (%): 4
- Loan tenure (years): 30
the calculator returns:
- Maximum monthly instalment: S$6,100.00
- Maximum loan (TDSR): S$1,277,713.57
- Price supported at 75% LTV: S$1,703,618.09
Any tips?
- Budget for legal fees, valuation, renovation and moving costs on top of the downpayment and stamp duties.
- Stamp duty must be paid within 14 days of signing, so have the cash ready before you exercise the option.
- Using CPF for housing reduces what is left for retirement, and you must refund the amount used plus accrued interest when you sell.
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.
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.
Related calculations
- 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.
- Seller's Stamp Duty (SSD) Calculator: Calculates SSD for residential property bought on or after 4 July 2025 and sold within four years.
- 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).
Try it yourself with the Property Affordability Calculator.
Run your own numbers: Property Affordability Calculator