1. What is Home Loan Eligibility?

The Home Loan Eligibility Calculator estimates the maximum loan amount you can qualify for based on your affordable monthly payments, interest rate, and loan tenure. It considers Singapore's HDB loan schemes with rates starting at 2.6% p.a.

2. How Does the Calculator Work?

The calculator uses the loan eligibility formula:

Where:

• \( P \) — Principal loan amount (SGD)
• \( PMT \) — Affordable monthly payment (SGD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of monthly payments

Explanation: The formula calculates the present value of a series of future payments at a given interest rate.

3. Importance of Loan Eligibility

Details: Understanding your maximum loan eligibility helps in property budgeting and ensures you don't overcommit financially. HDB loans have specific eligibility criteria including citizenship, income ceiling, and property type.

4. Using the Calculator

Tips: Enter your comfortable monthly payment, select interest rate (2.6% for HDB loans), loan tenure (up to 25 years for HDB), and choose the loan scheme. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between HDB and bank loans?
A: HDB loans have fixed 2.6% rates and more flexible eligibility, while bank loans may have lower rates but stricter requirements and variable rates.

Q2: What is the maximum loan tenure in Singapore?
A: Up to 25 years for HDB flats, and up to 30 years for private properties (subject to age limits).

Q3: What is the minimum downpayment for HDB?
A: 10% for HDB loans (can use CPF), 25% for bank loans (5% cash minimum).

Q4: Are there additional costs besides the loan?
A: Yes, include stamp duty, legal fees, valuation fees, and insurance in your budget.

Q5: How does TDSR affect my eligibility?
A: Total Debt Servicing Ratio (TDSR) limits your monthly debt obligations to 55% of gross income, which may reduce eligible loan amounts.