In Singapore, one of the beautiful parts of buying residential property, including new launch projects is home buyers can apply for home loans to finance their purchase from local banks. The overall assessment fo borrower’s financial capacity is subject to the Total Debt Servicing Ratio (TDSR) framework and Loan-To-Value(LTV) limits. TDSR calculation will take into account borrowers’ monthly debt obligations and gross monthly income. The LTV limits determine the maximum amount an individual can borrow from a financial institution for a housing loan based on the applicant’s existing home loan situation and loan tenure to be applied.
Those regulations will ensure that home buyers and borrowers are not over-leveraged for property purchases and encourage financial prudence among home buyers. In the end, TDSR and LTV limits will promote long-term sustainability in the property market. Thanks to those structured policies, financial stability of local residential market have been significantly improved.
Our Maximum Home Loan Calculator is here to help you make a straightforward estimation on your private home loan based on your input financial status. The accuracy of such home loan assessment is subject to the truthful level of financial information you can share. Local bankers will quality the applicants by a package of their criteria. The calculation is just a quick estimation and for reference only.