DBS Home Loan Payment Formula:
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The DBS Home Loan Calculator helps estimate monthly mortgage payments for properties in Singapore. It uses the standard loan amortization formula with DBS's current interest rates starting at 2.75% p.a.
The calculator uses the standard PMT formula:
Where:
Explanation: The formula calculates the fixed monthly payment required to fully amortize a loan over its term, including both principal and interest components.
Details: Accurate payment estimation helps borrowers assess affordability, compare loan options, and plan their finances when purchasing property in Singapore.
Tips: Enter the loan amount in SGD, annual interest rate (DBS rates start from 2.75%), and loan tenure in years (maximum 35 years). All values must be positive numbers.
Q1: What are current DBS home loan rates?
A: Rates start from 2.75% p.a. for fixed-rate packages, with floating rates typically higher. Actual rates depend on loan package and market conditions.
Q2: Does this include other fees?
A: No, this calculates only principal and interest. Additional costs like property tax, insurance, and legal fees are not included.
Q3: What's the maximum loan tenure in Singapore?
A: For private properties, maximum is typically 35 years or until age 65-70, whichever comes first.
Q4: How does interest rate affect payments?
A: Higher rates increase monthly payments significantly. A 1% rate increase on a SGD 500,000 loan can add SGD 200-300 to monthly payments.
Q5: Can I calculate for different payment frequencies?
A: This calculator assumes monthly payments. For bi-weekly or other frequencies, the formula needs adjustment.