What is the Total Debt Servicing Ratio (TDSR) for an HDB Loan?
For HDB loans, your total monthly debt obligations should not exceed 30% of your monthly income. This covers your HDB loan, credit card debts, personal loans, auto loans etc. Do verify with banks on their specific TDSR thresholds.
Is There a Cap on HDB Loan Amount?
You can borrow up to 90% of the HDB property purchase price with a HDB Concessionary Loan. The maximum quantum also depends on whether grants like CPF Housing grant are applicable. Loan caps vary based on citizenship status as well.
How to Estimate HDB Monthly Loan Repayments?
Use the HDB loan calculator to estimate repayments. Enter your expected loan amount, the current HDB interest rate, and preferred loan tenure in years. The calculator will estimate your monthly principal and interest amounts.
What is the Maximum HDB Loan Tenure?
The maximum tenure for HDB loans is 30 years. Maximum loan amounts are provided based on a tenure of 25 years though. So borrowing the full 90% of property value requires keeping tenure between 25-30 years.
How do HDB Interest Rates Work?
HDB interest rates are pegged to CPF rates but offered at a concession of 0.1% below CPF rates. They are reset monthly based on CPF rates so they float accordingly. Banks offer fixed rates for certain years before resetting them based on HDB rates monthly.
What is HPS Mortgage Insurance on HDB Loans?
The Home Protection Scheme (HPS) provides mortgage insurance designed to pay down your HDB loan in case of death or permanent disability. It is compulsory when utilizing CPF funds for the purchase. Premiums are paid out of your Ordinary HPS account.
Update Interest Rates
Rates change monthly, so enter the latest HDB interest rate to get an accurate estimate. Check HDB's website for the current rate.
Max Out Loan Length to 30 Years
Use the full 30 year tenure even if you plan to pay earlier. This shows the most conservative estimate.
Decrease Payment Amount
Take 5-10% off your actual down payment amount entered to account for other upfront costs.
Calculate Monthly Repayments
Use the repayment estimate as a guide for regular monthly budgets. Useful for planning!
Test Different Loan Amounts
Adjust the loan amount to see the impact on monthly obligations. Helps assess your affordability limit.