Singapore Mortgage Calculator

MAS sets maximum Loan-to-Value (LTV) limits that apply to all housing loans (HDB and bank), updated August 2024:

First property, no outstanding loans:

• 75% LTV — tenure ≤30yr (private) or ≤25yr (HDB) AND loan ends before age 65
• 55% LTV — longer tenure or loan extends past age 65

Second property (one outstanding loan):

• 45% LTV (standard) or 25% (longer tenure / post-65)

Third+ property (two or more outstanding loans):

• 35% LTV (standard) or 15% (longer tenure / post-65)

The August 2024 update reduced the HDB loan LTV from 80% to 75%, aligning it with bank loans.

The Total Debt Servicing Ratio (TDSR) is a MAS framework that caps total monthly debt repayments (mortgage + car loan + personal loans + credit card minimums + student loans) at 55% of gross monthly income.

For example, if your gross income is SGD 12,000/month, your total monthly debt repayments must not exceed SGD 6,600.

Key rules:

• Banks apply a minimum 4.0% stress test floor when computing TDSR for residential property loans (5.0% for non-residential) — even if your actual rate is lower
• Variable income (commissions, bonuses, rental) is subject to a 30% haircut — only 70% counts
• Pledged assets can be added back at face value, amortised over 48 months

Existing debts (such as car loans) count toward the 55% TDSR limit. A lower level of existing debt allows a higher maximum mortgage under TDSR.

The Mortgage Servicing Ratio (MSR) caps the monthly mortgage repayment at 30% of gross monthly income. Unlike TDSR, MSR applies only to:

• HDB flats (BTO, resale, DBSS)
• Executive Condominiums (EC) purchased directly from developers

MSR does not apply to private property (condo, landed) or EC resale on the open market.

For example, if your gross income is SGD 10,000/month, your HDB mortgage repayment cannot exceed SGD 3,000/month — even if your TDSR allows for more. Both TDSR (55%) and MSR (30%) must be passed simultaneously for HDB and EC purchases. MSR is usually the binding constraint for HDB upgraders.

Banks use the same 4.0% stress test floor when computing MSR.

When you apply for a home loan, banks do not use your actual interest rate to assess affordability. They use a minimum stress test floor rate of 4.0% p.a. set by MAS (residential), or 5.0% (non-residential).

This means even if your actual rate is 1.65%, the bank computes TDSR/MSR as if you were paying 4.0%. The result: your maximum approvable loan is lower than the calculator at your actual rate would suggest.

Why this matters in 2026: with bank rates at ~1.55–1.80%, the gap between actual and stress rate is the widest in years. Borrowers who could "afford" repayments at current rates may still fail TDSR at the stress rate. This buffer protects against future rate rises — if rates climb back to 4%+, you can still afford the repayments.

HDB loans use a separate 3.0% stress floor for HDB loan eligibility.

As of July 2026:

• HDB concessionary loan: 2.60% p.a. (fixed, pegged at CPF OA + 0.10%; confirmed for Q3 2026) — stable for 20+ years
• Bank fixed-rate packages: ~1.55–1.80% p.a. (2–3yr lock-in, DBS/OCBC/UOB/Maybank — as published March 2026)
• Bank SORA-linked floating: ~1.55–1.80% p.a. (3M Compounded SORA + bank spread of 0.50–0.75%)
• 3M Compounded SORA: 1.20% p.a. (7 September 2026; 3-year low of ~1.02% in April 2026)

This is a major reversal from 2023 levels. SORA peaked at ~3.6% in late 2023 and fell to ~1.02% by April 2026 (1.20% as at 7 September 2026), dragging bank fixed and floating rates well below the static HDB rate.

Note: fixed-rate packages revert to floating after the lock-in period. Three-year average rates give a more accurate comparison than Year 1 rates, which often increase after the promotional period.

SORA (Singapore Overnight Rate Average) is Singapore's key interest rate benchmark, published daily by MAS. It is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market.

SORA replaced SIBOR as the sole floating-rate benchmark in Singapore at the end of 2024. Most floating-rate home loans are now priced as 3-month Compounded SORA + bank spread (typically 0.50–1.00%).

The 3M Compounded SORA is calculated by compounding the daily SORA rate over the prior 3-month period — making it less volatile than 1-month SORA. As at 7 September 2026, 3M SORA is 1.20% — near the 3-year low of ~1.02% reached in April 2026 (down from a 2023 peak of 3.6%).

When SORA rises, your monthly repayment on a floating-rate loan increases. When SORA falls, your repayment decreases. Fixed-rate packages lock in your rate for 2–3 years, after which they revert to floating.

The choice depends on your risk tolerance and rate outlook.

Fixed rate (bank, 2–3yr lock-in): repayments are predictable for the lock-in period. Useful if you value certainty or expect rates to rise. After lock-in, the rate reverts to floating — you can refinance at that point. Currently ~1.55–1.80% p.a.

Floating rate (SORA-linked): repayments change with SORA. Benefits from rate decreases, exposes you to rate increases. Currently also ~1.55–1.80% as published March 2026 (3M SORA at 1.20% as at 7 September 2026, plus 0.5–0.75% spread).

HDB concessionary (2.60%): effectively acts like a stable fixed rate, with no lock-in and no early repayment penalty.

In March 2026, fixed and floating bank rates are very close (both ~1.55–1.80%); the difference between them is largely certainty versus flexibility. Total three-year cost — not the Year 1 rate alone — determines the cheaper package.

For owner-occupied properties (your primary residence), mortgage interest is not tax-deductible in Singapore.

For investment properties that generate rental income, only the interest portion of your monthly repayment is deductible against rental income — not the principal repayment component. Other deductible expenses include:

• Property tax (at non-owner-occupier rates)
• Fire / property insurance premiums
• Maintenance and repairs (not renovation/improvement)
• Agent commission for securing tenants

Net rental profit (after deductions) is added to your assessable income and taxed at your personal income tax rate. Singapore has no capital gains tax — profits from selling property are generally not taxable unless IRAS deems you a property trader.

Buyer's Stamp Duty (BSD) is payable by all property buyers in Singapore, calculated on the higher of purchase price or market value. Per IRAS, residential rates (effective 15 February 2023):

• 1% on first SGD 180,000
• 2% on next SGD 180,000
• 3% on next SGD 640,000 (up to SGD 1M)
• 4% on next SGD 500,000 (SGD 1M–1.5M)
• 5% on next SGD 1.5M (SGD 1.5M–3M)
• 6% above SGD 3M

Worked example (SGD 1.2M property): SGD 1,800 + 3,600 + 19,200 + 8,000 = SGD 32,600 BSD.

BSD must be paid within 14 days of OTP exercise. CPF OA savings can be used to pay BSD.

Additional Buyer's Stamp Duty (ABSD) is a cooling measure on top of BSD. Rates effective 27 April 2023:

• Singapore Citizen (SC): 1st = 0% · 2nd = 20% · 3rd+ = 30%
• Singapore PR (SPR): 1st = 5% · 2nd = 30% · 3rd+ = 35%
• Foreigner: 60% on any property (was 30% before 27 Apr 2023)
• Entity (company): 65% on any property

ABSD is calculated on the higher of purchase price or market value, payable within 14 days of OTP. SC married couples buying jointly may apply for ABSD remission if they sell their first property within 6 months of purchasing the second.

Bank loan (first property, standard conditions) — example SGD 1.2M property:

• Minimum 5% cash down payment = SGD 60,000
• Remaining 20% (SGD 240,000) — cash or CPF OA
• BSD ≈ SGD 32,600 — payable from CPF OA or cash
• Legal/conveyancing fees ≈ SGD 2,500–4,000 — CPF OA or cash
• Minimum cash required ≈ SGD 60,000–65,000

HDB loan (first HDB flat):

• No minimum cash for down payment — full 25% can be paid from CPF OA or cash
• BSD still payable (CPF OA can pay)
• Note: HDB LTV reduced from 80% to 75% effective 20 August 2024

For second property, expect substantially more upfront cost: ABSD of 20% (SC) on top of BSD, and LTV drops to 45% — meaning a much larger down payment.

From 4 July 2025, properties purchased on or after this date are subject to a new SSD framework with a 4-year holding period (was 3 years):

• Up to 1 year: 16%
• 1–2 years: 12%
• 2–3 years: 8%
• 3–4 years: 4%
• Beyond 4 years: 0%

Properties bought before 4 July 2025 use the old 3-year framework (12% / 8% / 4% / 0%). SSD is calculated on the higher of selling price or market value.

HDB flats are exempt from SSD if sold after the 5-year Minimum Occupation Period.

As of March 2026, the comparison has shifted because bank rates are well below the HDB rate.

HDB concessionary loan features rate stability (2.60% for 20+ years), no minimum cash down payment requirement, and maximum flexibility (no lock-in, no early repayment fees). It suits borrowers who prioritise rate certainty or expect bank rates to rise above 2.60% in future cycles.

Bank loan currently offers lower rates (~1.55–1.80% vs HDB 2.60%) — a difference of approximately SGD 4,100/year on a SGD 500,000 loan — but requires the minimum 5% cash down payment and carries rate uncertainty after the lock-in period.

Critical caveat: switching from an HDB loan to a bank loan is permanent and irreversible. If bank rates rise above 2.60% in future, a borrower cannot return to the HDB rate.

When a bank loan's lock-in period (typically 2–3 years) ends, your rate usually converts to the bank's prevailing floating rate — often SORA + a higher spread than your initial promotional rate. You have two options:

Repricing — ask your existing bank to move you to a new package. Typically a small fee (SGD 500–800). Faster and easier, but rates may not be the most competitive.

Refinancing — switch to another bank for a new loan. Involves legal fees (often partially subsidised by the new bank as cashback) but usually offers better "new customer" rates.

MoneySense notes that borrowers commonly begin comparing packages around six months before the lock-in period ends. Refinancing often offers lower rates than internal repricing because banks provide new-customer incentives.

An HDB loan can be refinanced to a bank at any time with no penalty; this switch from HDB to a bank loan is permanent.

HDB loans: partial capital repayments allowed at any time with no penalty. This directly reduces outstanding principal and saves interest.

Bank loans: most packages allow partial prepayments, but a partial prepayment fee (typically 1–1.5% of amount prepaid) applies during the lock-in period. After lock-in, partial repayments are usually free.

Impact on a reducing-balance loan: on a SGD 900,000 loan at 1.80% over 25 years, an extra SGD 500/month reduces total interest by approximately SGD 50,000 and cuts ~4 years off the tenure. Even small extra amounts in early years have a strong compounding effect because interest is charged on the outstanding principal.

Lump-sum prepayments are typically made after the lock-in period expires. Prepayment terms vary by bank and should be confirmed with the lender.

Buying a second property has multiple compounding financial implications:

• LTV drops to 45% (one outstanding loan) — meaning a much larger down payment
• ABSD applies: 20% for SC second property; 30% for SPR second; 60% for foreigner — on a SGD 1.2M property, that's SGD 240,000 to SGD 720,000 additional tax
• CPF refund required: any CPF OA used for your first property must be refunded with accrued interest before CPF can be used again
• Combined TDSR: mortgage payments from both properties must fit within the 55% TDSR limit
• SSD applies: if sold within 4 years (purchased from 4 July 2025), SSD of 16% / 12% / 8% / 4% / 0% applies

For SC married couples, the ABSD on a second property can be remitted if you sell your first within 6 months.

Beyond the down payment and BSD/ABSD, budget for:

• Legal/conveyancing fees: ~SGD 2,500–4,000 for a SGD 1M+ property — payable from CPF OA
• Bank valuation fee: ~SGD 300–700
• Mortgage insurance: HDB requires CPF Home Protection Scheme (HPS) if CPF is used; bank loans may require Mortgage Reducing Term Assurance (MRTA)
• Fire / home insurance: typically required by the bank — ~SGD 200–400/year
• Agent commission: typically 1% of purchase price (resale HDB) or waived for private property where seller pays
• Renovation: for BTO flats, typically SGD 30,000–80,000+
• Moving costs and furniture

For investment properties, also budget for property tax at non-owner-occupier rates (10–20% of annual value), management fees, and a vacancy reserve.