1. What is the Private Property Loan Calculator?

The Private Property Loan Calculator estimates monthly mortgage payments for private residential properties in Singapore using the standard amortization formula. It helps prospective buyers plan their finances.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment required to fully amortize a loan over its term, including both principal and interest components.

3. Importance of Loan Calculation

Details: Accurate payment estimation is crucial for financial planning, determining affordability, and comparing different loan options in Singapore's private property market.

4. Using the Calculator

Tips: Enter loan amount in SGD, annual interest rate in percentage, and loan tenure in years (up to 35 years for private property loans in Singapore).

5. Frequently Asked Questions (FAQ)

Q1: What's the maximum loan tenure in Singapore?
A: For private properties, maximum tenure is typically 35 years or until age 65-75, whichever comes first.

Q2: Are there additional costs not included?
A: Yes, this calculator doesn't include property taxes, insurance, maintenance fees, or stamp duties.

Q3: How does TDSR affect my loan?
A: Singapore's Total Debt Servicing Ratio (TDSR) limits your monthly debt obligations to 55% of gross monthly income.

Q4: Fixed vs floating rate loans?
A: Fixed rates offer stability while floating rates may change with market conditions. Consider your risk tolerance.

Q5: What's the typical downpayment?
A: For private properties, minimum downpayment is 25% (5% cash, 20% CPF/cash) for first loan, higher for subsequent loans.