Loan Eligibility Calculator Singapore

What Is a Loan Eligibility Calculator Singapore?

A Loan Eligibility Calculator Singapore estimates how much property-loan repayment your monthly income may support.

The calculator uses your property or loan type, gross monthly income, existing debts, assessment interest rate and loan tenure. It then shows an estimated maximum mortgage instalment, maximum loan amount and servicing rule applied.

This is a regulatory affordability screen. It does not approve a loan or provide an offer from a bank.

The Bank Loan Calculator Singapore serves a different purpose by estimating repayments and borrowing costs for an entered loan amount.

How to Use the Calculator

Complete each field using realistic and complete financial information.

Property or Loan Type

Choose the option that matches the property or loan being considered.

The calculator uses this selection to decide whether to apply a Total Debt Servicing Ratio screen or an applicable Mortgage Servicing Ratio limit as well.

Selecting a property type does not confirm that you are eligible to purchase that property or obtain a particular loan.

Gross Monthly Income

Enter your gross monthly income before CPF contributions, tax and personal expenses.

A lender may not recognise every part of the amount at its full value. Variable, rental or other uncertain income may be reduced through an income haircut during an actual assessment.

Income tax is not deducted by this calculator. Use the Singapore Tax Calculator for a separate tax-related estimate.

Existing Monthly Debt Payments

Enter all monthly debt obligations that may count towards TDSR.

These can include:

• Existing housing-loan payments
• Car-loan instalments
• Personal-loan payments
• Relevant credit-card debt
• Other recognised debt commitments

Do not enter only the debt you consider important. Leaving out an existing repayment can overstate the available mortgage capacity.

Assessment Interest Rate

Enter the annual assessment or stress-test rate required by the lender, or the rate you want to test.

This rate may be higher than the advertised package rate. A higher assessment rate generally produces a lower estimated maximum loan for the same affordable instalment.

Loan Tenure

Enter the proposed repayment period in years.

A longer tenure can support a larger loan because repayments are spread over more months. However, it normally increases total interest and may not be permitted because of age, property type, lease or lender restrictions.

Press Calculate Loan Estimate after entering all the details.

TDSR and MSR Rules Used

The Total Debt Servicing Ratio limits the share of gross monthly income used for all monthly debt repayments.

The current TDSR threshold is generally 55%.

Maximum total monthly debt = Gross monthly income × 55%

The estimated amount available for a new mortgage is:

Available mortgage instalment = TDSR limit − existing monthly debts

The Mortgage Servicing Ratio applies to specified property purchases, including applicable HDB flats and Executive Condominiums.

The current MSR limit is generally 30% of gross monthly income.

MSR mortgage limit = Gross monthly income × 30%

When both rules apply, the calculator should use the lower amount allowed by the two screens. MAS provides the regulatory overview of TDSR and MSR limits.

How the Maximum Loan Is Calculated

After finding the estimated affordable monthly mortgage instalment, the calculator converts it into a loan amount using a monthly reducing-balance formula.

Loan amount = M × [1 − (1 + i)^−N] ÷ i

Where:

• M is the maximum monthly mortgage instalment
• i is the annual assessment rate divided by 12
• N is the loan tenure in months

This is a mathematical estimate. The lender may apply a different assessment rate, permitted tenure or income figure.

Loan Eligibility Calculation Example

Suppose you select a private residential property using a TDSR screen and enter:

• Gross monthly income: S$8,000
• Existing monthly debts: S$1,000
• Assessment interest rate: 4% per year
• Loan tenure: 25 years

First, calculate the TDSR limit:

S$8,000 × 55% = S$4,400

Subtract existing monthly debts:

S$4,400 − S$1,000 = S$3,400

The estimated maximum mortgage instalment is S$3,400 per month.

Using a 4% annual assessment rate and a 25-year tenure, the corresponding estimated maximum loan is approximately:

S$644,138

This does not mean a lender will approve S$644,138. LTV limits, property value, downpayment, borrower age, income assessment and credit checks may reduce the actual loan.

What the Calculator Does Not Determine

The calculator does not evaluate:

• Loan-To-Value limits
• Minimum cash downpayment
• CPF usage limits
• Borrower age restrictions
• Maximum permitted tenure
• Remaining property lease
• HDB or property eligibility
• Credit score and repayment history
• Income haircuts
• Employment stability
• Bank-specific affordability rules

It also does not calculate business financing. The Singapore Corporate Business Loan Calculator should be used separately for a business-loan estimate based on its own inputs.

A lender can apply stricter standards than the regulatory maximum. Treat the result as an early planning figure only.

Why the Assessment Rate Matters

The assessment rate tests whether the loan may remain affordable at a higher interest rate.

For the same monthly repayment and tenure:

• A higher assessment rate produces a lower loan amount.
• A lower assessment rate produces a higher loan amount.
• A longer tenure produces a higher loan amount but more total interest.
• Higher existing debts leave less room for a mortgage.

Test more than one rate instead of relying only on the current advertised package.

Common Mistakes

Avoid these common mistakes:

• Entering take-home pay instead of gross income
• Leaving out existing debt repayments
• Using an advertised rate when the lender applies a higher assessment rate
• Assuming the longest entered tenure will be permitted
• Treating TDSR as the only lending condition
• Ignoring LTV and downpayment requirements
• Treating the result as guaranteed approval

Personal assets do not automatically increase TDSR servicing capacity. The Gold Price Calculator Singapore estimates entered gold value but does not decide property-loan eligibility.

Everyday charges are also unrelated to mortgage capacity. Use the Singapore Service Charge and GST Calculator separately when checking additions to a bill.

Other Singapore-focused planning tools are available through the Calculator Singapores homepage.

Frequently Asked Questions

Q1: Does this calculator approve my loan?

A: No. It provides an affordability estimate. Only a lender can assess and approve an application.

Q2: What is the current TDSR limit?

A: Total monthly debt commitments should generally not exceed 55% of gross monthly income.

Q3: What is the current MSR limit?

A: Where MSR applies, the monthly mortgage instalment is generally capped at 30% of gross monthly income.

Q4: Should I include my existing car loan?

A: Yes. Include existing monthly debts that count towards the lender’s TDSR assessment.

Q5: Why is the assessment rate different from the advertised rate?

A: Lenders may use a stress-test rate to assess whether repayments remain affordable if interest rates change.

Q6: Does the estimate include the LTV limit?

A: No. LTV and property value can separately restrict the amount that may be borrowed.

Q7: Can the actual approved loan be lower?

A: Yes. Income haircuts, age, tenure, credit history, property rules and lender policies can reduce the approved amount.