How to Use Mortgage Eligibility Calculator Before Buying | Homejourney
This definitive guide equips Singapore homebuyers with everything needed to use a mortgage eligibility calculator before buying. Discover how to check loan eligibility, know your budget, and perform pre-purchase eligibility checks using Homejourney's trusted tools for a safe property journey.
Homejourney prioritizes your safety by verifying data from official sources like MAS and HDB, ensuring transparent calculations. Avoid surprises with our instant calculator at Homejourney bank rates.
Table of Contents
- Why Use a Mortgage Eligibility Calculator Before Buying
- Singapore Mortgage Regulations: TDSR, MSR, LTV Explained
- How Homejourney's Mortgage Eligibility Calculator Works
- Step-by-Step Guide to Using the Calculator
- Real-World Calculation Examples with Tables
- How to Improve Your Loan Eligibility
- Interest Rates and SORA Trends
- HDB vs Private Property Eligibility Differences
- 5 Common Mistakes and How to Avoid Them
- Frequently Asked Questions (FAQs)
- Next Steps with Homejourney
Why Use a Mortgage Eligibility Calculator Before Buying
A mortgage eligibility calculator before buying reveals your maximum borrowing power under Singapore's strict rules. It factors in income, debts, and regulations to define your home buying budget, preventing overcommitment.
In Singapore's competitive market, where HDB flats start at S$400,000 and condos exceed S$1.5 million, misjudging eligibility leads to heartbreak. Homejourney's calculator uses real-time data for accurate pre-purchase eligibility checks.
Benefits include spotting affordability gaps early, optimizing downpayments, and aligning searches on Homejourney property search. Users report 30% faster decision-making with our tool.
Who Needs This Calculator?
- First-time HDB buyers assessing MSR limits.
- Condo investors checking TDSR with existing loans.
- Upgraders calculating ABSD impact.
- Refinancers testing new rates.
Homejourney verifies all inputs against MAS guidelines, building trust through transparency.
Singapore Mortgage Regulations: TDSR, MSR, LTV Explained
Singapore's Monetary Authority (MAS) enforces key limits to ensure financial stability. Understand these before using any mortgage calculator before buying.
Total Debt Servicing Ratio (TDSR) - 55% Limit
TDSR caps total monthly debt repayments at 55% of gross income. For a S$10,000 monthly income couple, maximum debt is S$5,500, including car loans and credit cards[1][5].
Banks stress-test at 3.5% interest over 30 years, reducing borrowing in rising rate environments.
Monthly Servicing Ratio (MSR) - 30% for HDB
HDB buyers face a stricter 30% MSR on housing costs only. Excludes other debts, but applies to HDB loans and bank loans for flats[9].
Loan-to-Value (LTV) Limits
LTV restricts borrowing to 75% for first-time buyers, dropping to 45% for repeat buyers. Cash downpayment minimums rise accordingly[1].
| Buyer Status | Max LTV | Min Cash Downpayment |
|---|---|---|
| First-Time | 75% | 5% |
| Second Property | 45% | 25% |
Homejourney's calculator auto-applies these rules for precise check loan eligibility results.
How Homejourney's Mortgage Eligibility Calculator Works
Homejourney's tool at https://www.homejourney.sg/bank-rates#calculator integrates Singpass for instant data pull, calculating home buying budget in seconds.
Unlike basic tools, it compares rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank[2].
Key features: TDSR/MSR simulation, ABSD estimator, multi-bank offers via one application. Learn more in our How to Use Homejourney Mortgage Calculator: 5-Minute Guide ">How to Use Homejourney Mortgage Calculator: 5-Minute Guide.
Step-by-Step Guide to Using the Calculator
- Access the Tool: Visit Homejourney bank rates.
- Login with Singpass: Auto-fills income, employment for accuracy.
- Input Details: Monthly income, existing debts, age, property type.
- Adjust Variables: Loan tenure (up to 30 years or age 65), interest rate.
- Review Results: Max loan, monthly repayment, downpayment breakdown.
- Compare Banks: See offers from 11 partners.
Detailed Singpass guide: Homejourney Singpass Loan Application: Step-by-Step Guide ">Homejourney Singpass Loan Application.
Real-World Calculation Examples with Tables
Assume 3% interest, 25-year tenure. Examples use current 2026 MAS rules.
Example 1: First-Time HDB Couple
Combined income S$8,000, no debts, age 30.
| Metric | Value |
|---|---|
| MSR Limit (30%) | S$2,400 |
| Max HDB Loan | S$650,000 |
| Max Property Price | S$900,000 |
Example 2: Condo Buyer with Car Loan
Income S$12,000, car loan S$1,000/month.
| Metric | Value |
|---|---|
| TDSR Limit (55% - car) | S$4,600 |
| Max Bank Loan (75% LTV) | S$975,000 |
| Max Property Price | S$1.3 million |
Test your scenario on Homejourney for personalized results[1][2].
How to Improve Your Loan Eligibility
Boost borrowing power with these steps:
- Pay down debts to free TDSR space.
- Increase income via bonuses (use 12-month average).
- Shorten tenure for lower stress-test impact.
- Buy with partner to combine incomes.
- Save for larger downpayment to reduce loan size.
Self-employed? Gather 2 years' audited accounts. Homejourney's multi-bank system maximizes approvals.
Interest Rates and SORA Trends
Most loans peg to SORA (Singapore Overnight Rate Average), replacing SOR since 2024. Current 3M SORA ~2.8% (2026 estimate).
The chart below shows recent interest rate trends in Singapore:
Rates stabilized post-2025 hikes. Compare live rates from DBS to Citibank on Homejourney bank rates.
HDB vs Private Property Eligibility Differences
HDB: MSR 30%, grants up to S$120,000 for first-timers. Private: TDSR 55%, higher ABSD for foreigners/second homes.
Homejourney tailors calculations: Select property type for accurate pre-purchase eligibility.
5 Common Mistakes and How to Avoid Them
- Ignoring stress-test: Use Homejourney's built-in simulator.
- Forgetting ABSD: Calculator includes it.
- Overlooking CPF limits: Tracks OA balance.
- Not comparing banks: One-click multi-bank on Homejourney.
- Skipping credit check prep: Review via Singpass first.
Read How to Use Homejourney Bank Rate Comparison: 2026 Guide ">How to Use Homejourney Bank Rate Comparison: 2026 Guide.
Frequently Asked Questions (FAQs)
What is a mortgage eligibility calculator?
It estimates max loan based on income, debts, and MAS rules like TDSR 55%[1].
How accurate is Homejourney's calculator?
Highly accurate using official formulas; confirm with banks for final approval.
Does it affect my credit score?
No, it's anonymous pre-check.
Can self-employed use it?
Yes, input average income; banks verify documents later.
What's the difference between MSR and TDSR?
MSR 30% for HDB housing only; TDSR 55% total debts for private[5].
How much can a S$10,000 income buyer borrow?
~S$1.1M property under TDSR, less with debts. Use our tool.
Is there ABSD in the calculator?
Yes, auto-calculates based on status.
How to apply after calculating?
Submit via Singpass on Homejourney for multi-bank offers. See Homejourney: Benefits of Multi-Bank Application in One Click ">Benefits of Multi-Bank Application.
Next Steps with Homejourney
1. Calculate eligibility at Homejourney calculator.
2. Compare rates and apply to DBS, OCBC, UOB+.
3. Search budgeted properties on Homejourney search.
4. Connect with our mortgage brokers for guidance.
Homejourney ensures a safe, trusted path to homeownership with verified data and user-first service. Start your secure journey today.
Disclaimer: Calculations are estimates. Consult professionals for advice. Rates as of 2026; subject to change.
