Understanding Mortgage Amortization Schedule: The Complete Guide for Singapore Home Buyers

An amortization schedule is a detailed table showing how your home loan will be repaid over time, breaking down each monthly payment into principal and interest components. For Singapore property buyers, understanding this schedule is essential to making informed financing decisions, comparing bank offers, and planning your long-term financial commitments.

This comprehensive guide explains everything you need to know about mortgage amortization schedules, including how they work, why they matter, and how to use them to optimize your home loan strategy. Whether you're a first-time buyer exploring your options or an existing homeowner considering refinancing, Homejourney's definitive resource will help you navigate Singapore's mortgage landscape with confidence.

Table of Contents

• What is a Mortgage Amortization Schedule?
• How Amortization Schedules Work in Singapore
• Key Components: Principal, Interest, and Balance
• Calculating Your Monthly Payment Amount
• How to Read Your Amortization Schedule
• SORA Rates and Variable Rate Schedules
• HDB Loans vs Bank Mortgages: Schedule Differences
• Early Repayment and Penalty Implications
• Using Amortization Data for Refinancing Decisions
• Frequently Asked Questions

What is a Mortgage Amortization Schedule?

An amortization schedule is a comprehensive breakdown of your home loan repayment plan. It displays every payment you'll make over the life of your mortgage, showing exactly how much of each payment goes toward principal (the amount you borrowed) and how much goes toward interest (the cost of borrowing).

For example, on a $500,000 mortgage at 1.8% interest over 25 years, your first payment might be approximately $2,150. Of this amount, roughly $750 goes toward interest and $1,400 toward principal. As you progress through the schedule, the interest portion decreases while the principal portion increases—this is the fundamental principle of amortization.

In Singapore's context, amortization schedules are critical because they help you understand the true cost of your home loan. With current SORA-linked rates ranging from 1.09% to 2.178% depending on the bank and lock-in period, the difference between a 20-year and 25-year mortgage can mean tens of thousands of dollars in total interest paid.

Homejourney's commitment to user safety and trust means we emphasize the importance of reviewing your amortization schedule before committing to any loan. This transparency helps you make informed decisions about your property investment and long-term financial planning.

How Amortization Schedules Work in Singapore

Singapore's mortgage system relies on standard amortization principles, but with specific regulatory frameworks managed by the Monetary Authority of Singapore (MAS) and the Housing and Development Board (HDB). Understanding how these schedules function in the local context is essential for all property buyers.

The Amortization Process

When you take out a home loan in Singapore, your lender calculates a fixed monthly payment amount based on three factors: the loan amount, the interest rate, and the loan tenure. This payment remains constant throughout the amortization period (for fixed-rate loans) or adjusts according to interest rate changes (for floating-rate loans).

Each month, your payment is divided into two components. The interest portion is calculated on your remaining loan balance, while the principal portion reduces your outstanding debt. Early in the loan term, interest dominates your payments. By the final years, principal payments dominate.

The chart below shows recent SORA trends to help you understand how interest rate movements affect your amortization schedule:

As you can see from the chart above, Singapore's SORA rates have fluctuated between 1.18% and higher levels, directly impacting variable-rate mortgage payments. This volatility makes understanding your amortization schedule even more critical for budget planning.

Regulatory Framework

The MAS regulates home loan practices in Singapore, including requirements for transparent disclosure of interest rates, fees, and repayment terms. Banks must provide you with a complete amortization schedule before you sign your mortgage agreement. Additionally, MAS enforces the Total Debt Servicing Ratio (TDSR) limit of 60%, which directly impacts how much you can borrow and therefore the size of your amortization schedule.

For HDB loans, the Housing and Development Board provides its own amortization schedules based on fixed interest rates (currently 2.6% p.a. for new loans) and tenure options ranging from 5 to 30 years. HDB's system is simpler than bank mortgages because rates don't fluctuate, making the amortization schedule predictable throughout the loan term.

Key Components: Principal, Interest, and Balance

To effectively use an amortization schedule, you need to understand its core components. Each row in the schedule represents one payment period and contains critical information about your loan status.

Principal Payment

Principal is the portion of your monthly payment that reduces your actual loan balance. If you borrowed $500,000, the principal payments gradually reduce this amount until it reaches zero at the end of your loan term. In early payments, principal amounts are relatively small—perhaps $1,400 on a $2,150 payment. By the final payments, principal dominates—perhaps $2,100 of your $2,150 payment.

Understanding principal reduction is crucial because it represents your actual equity building in the property. This is why many Singapore property owners accelerate principal payments when possible—every extra dollar toward principal reduces your total interest cost and shortens your loan term.

Interest Payment

Interest is the cost of borrowing money from your lender. It's calculated as a percentage of your remaining loan balance. On a $500,000 loan at 1.8% annual interest, your first month's interest is approximately $750 (calculated as $500,000 × 1.8% ÷ 12 months).

The interest payment decreases each month as your principal balance decreases. This is why your total payment remains constant, but its composition changes. Over a 25-year mortgage, interest typically accounts for 40-50% of your total payments, depending on the interest rate and loan tenure.

For Singapore borrowers, interest rates vary significantly between banks. Comparing rates across DBS, OCBC, UOB, HSBC, Standard Chartered, and other major lenders can save you substantial amounts. On a $500,000 loan, a 0.5% rate difference over 25 years equals approximately $65,000 in total interest savings.

Outstanding Balance

Outstanding balance (or remaining balance) shows how much you still owe after each payment. It starts at your original loan amount and decreases with each principal payment. This figure is essential for understanding your equity position and is critical when considering refinancing.

The outstanding balance also determines your future interest payments. If you're in year 10 of a 25-year loan and your balance is $350,000, your next month's interest is calculated on $350,000, not the original $500,000. This is why the schedule shows declining interest payments over time.

Comparison Table: Payment Composition Over Time

This table illustrates the fundamental principle of amortization: while your payment amount stays constant, the composition shifts dramatically. In year 1, you're paying mostly interest. By year 25, you're paying almost entirely principal. This is why accelerating principal payments early in your mortgage provides substantial long-term savings.

Calculating Your Monthly Payment Amount

Understanding how your monthly payment is calculated helps you evaluate different loan scenarios and compare offers from different banks. The calculation uses a standard formula that accounts for your loan amount, interest rate, and tenure.

The Payment Formula

Banks use this formula to calculate your fixed monthly payment:

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]

Where:

• P = Principal loan amount (e.g., $500,000)
• r = Monthly interest rate (annual rate ÷ 12, e.g., 1.8% ÷ 12 = 0.15%)
• n = Total number of payments (loan tenure in years × 12, e.g., 25 years × 12 = 300 months)

Practical Example: Singapore Home Loan Calculation

Let's calculate the monthly payment for a typical Singapore home purchase:

• Property Price: $750,000 (e.g., a 4-room HDB flat in Bishan or a private apartment in Tiong Bahru)
• Down Payment: $150,000 (20%)
• Loan Amount: $600,000
• Interest Rate: 1.8% p.a. (typical DBS or OCBC rate for 2026)
• Tenure: 25 years (300 months)

Using the formula:

• Monthly rate (r) = 1.8% ÷ 12 = 0.15% = 0.0015
• Number of payments (n) = 25 × 12 = 300
• Monthly Payment = $600,000 × [0.0015(1.0015)^300] / [(1.0015)^300 - 1]
• Monthly Payment = Approximately $2,580

This means over 25 years, you'll make 300 payments of $2,580 each, totaling $774,000. The difference between $774,000 and your original $600,000 loan is $174,000 in interest costs.

How Tenure Affects Your Payment

Choosing a different loan tenure dramatically changes your monthly payment and total interest cost. Here's how the same $600,000 loan compares across different tenures at 1.8% interest:

• 20-year tenure: Monthly payment ≈ $2,970 | Total interest ≈ $110,800
• 25-year tenure: Monthly payment ≈ $2,580 | Total interest ≈ $174,000
• 30-year tenure: Monthly payment ≈ $2,310 | Total interest ≈ $228,600

A longer tenure reduces your monthly burden but increases total interest paid. This is why understanding your amortization schedule helps you balance affordability with long-term cost. For more information on how tenure impacts your loan approval odds and affordability, see our guide on Home Loan Tenure: Benefits of Applying via Homejourney .

Using Homejourney's Mortgage Calculator

Rather than manually calculating, you can instantly generate your amortization schedule using Homejourney's integrated mortgage calculator. Visit our bank rates page to access the calculator and instantly see:

• Your monthly payment amount across different interest rates
• Total interest costs for different loan tenures
• Your borrowing capacity based on TDSR limits
• Real-time rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and other major banks

This transparency is central to Homejourney's mission: helping you make informed decisions with verified, current data.

How to Read Your Amortization Schedule

Once you have your amortization schedule—whether from your bank, HDB, or generated through Homejourney's tools—you need to know how to interpret it effectively. A typical schedule contains the following columns:

Standard Schedule Columns

• Payment Number/Date: Which payment this is (1, 2, 3... or specific dates like "Feb 2026, Mar 2026")
• Payment Amount: The total amount due (principal + interest)
• Principal Payment: How much reduces your loan balance
• Interest Payment: How much goes to the lender as interest
• Outstanding Balance: Your remaining loan amount after this payment

What to Look For

Early Payments: Check your first few payments to see the interest-to-principal ratio. If you're paying $2,580 monthly and $750 is interest, that tells you interest is dominating early payments. This is normal and expected.

Mid-Loan Status: Look at payments around year 12-13 (halfway through a 25-year loan). You'll notice the principal portion is now significantly larger than the interest portion. However, you've typically paid off only 30-35% of the original principal at this point—the power of compound interest works against you early on.

Total Interest Cost: Sum all the interest payments in your schedule. On a $600,000 loan at 1.8% over 25 years, this totals approximately $174,000. This is the true cost of borrowing and should factor into your decision-making.

Rounding Adjustments: Most schedules include a small adjustment in the final payment to account for rounding. Banks round payments to the nearest cent, so your last payment might be $2,581.43 instead of exactly $2,580.00. This is normal and expected.

Special Considerations for Singapore Mortgages

Odd-Day Interest: If your loan closes on a date that doesn't align with your first payment date, you may have "odd-day interest"—interest charged for the period between closing and your first payment. Your amortization schedule should clearly show this adjustment.

Lock-In Periods: Singapore bank mortgages typically include 2-3 year lock-in periods. Your amortization schedule shows the fixed rate during this period, but note that rates will adjust when the lock-in period ends (for floating-rate mortgages). Your schedule will need to be recalculated at that point.

Early Repayment Penalties: Your schedule should note any early repayment penalties (typically 0.75%-1.50% of the loan amount). If you plan to refinance or sell during the lock-in period, these penalties affect your true cost of borrowing.

SORA Rates and Variable Rate Schedules

Most Singapore home loans today use SORA (Singapore Overnight Rate Average) as the benchmark rate. Understanding how SORA impacts your amortization schedule is critical for budgeting and financial planning.

What is SORA?

SORA is Singapore's benchmark interest rate, replacing the old SIBOR (Singapore Interbank Offered Rate) system. It represents the average rate at which banks lend to each other overnight. Banks add a spread (typically 0.40-0.50%) to SORA to determine your mortgage rate.

As of February 2026, the 3-month Compounded SORA rate is approximately 1.18570%, meaning a typical mortgage rate would be around 1.58-1.68% (SORA + spread). However, many banks offer 2-year lock-in rates as low as 1.64% p.a., providing rate certainty during the initial period.

Fixed vs. Floating Rate Schedules

Fixed-Rate Schedules: If you lock in a fixed rate (e.g., 1.8% for 2 years), your amortization schedule remains unchanged during that period. Your monthly payment stays constant, making budgeting straightforward.

Floating-Rate Schedules: With floating rates, your payment amount changes as SORA moves. Your initial schedule shows the current rate, but when SORA increases, your lender recalculates your payment amount and provides a new schedule. This is why floating-rate mortgages carry more budget uncertainty.

Impact on Your Amortization

When interest rates rise, your monthly payment increases, and more of each payment goes toward interest rather than principal. Conversely, when rates fall, your payment decreases and more goes toward principal. This directly affects how quickly you build equity in your property.

For example, if SORA increases from 1.18% to 1.68% (a 0.5% increase), a $600,000 loan's monthly payment increases from approximately $2,580 to $2,650—an extra $70 per month or $840 annually. Over the remaining loan term, this could add $20,000-40,000 to your total interest cost.

This is why many Singapore borrowers choose fixed-rate locks during uncertain rate environments. You can compare current fixed and floating rates from all major banks on Homejourney's bank rates page, which updates daily with real-time rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and other lenders.

Rate Review Dates

Your amortization schedule should clearly indicate when your rate review dates occur. Typically, this happens every 6 months or 1 year. Mark these dates in your calendar—3 months before a rate review is the ideal time to consider refinancing if rates are favorable. You'll avoid penalties and can lock in better rates before they increase further.

HDB Loans vs Bank Mortgages: Schedule Differences

Singapore offers two primary paths for home financing: HDB loans (for Housing and Development Board flats) and bank mortgages (for HDB flats, private properties, and executive condominiums). Their amortization schedules differ significantly.

HDB Loan Schedules

Fixed Interest Rate: HDB loans carry a fixed interest rate of 2.6% p.a. (as of 2026), which never changes. Your amortization schedule is therefore completely predictable from day one to the final payment.

Tenure Options: HDB allows loan tenures from 5 to 30 years. Most first-time buyers choose 25-30 years to minimize monthly payments, while upgraders often choose shorter tenures (15-20 years) to align with their retirement timeline.

Simpler Calculation: With a fixed rate and no adjustments, HDB schedules are straightforward. The monthly payment never changes, and you always know exactly how much interest you'll pay over the loan term.

Example HDB Schedule: A $300,000 HDB loan at 2.6% over 25 years results in monthly payments of approximately $1,420. Total interest over 25 years: approximately $126,000.

Bank Mortgage Schedules

Variable Interest Rates: Most bank mortgages use SORA-linked floating rates, meaning your schedule changes as interest rates move. Some banks offer fixed-rate locks (typically 2-3 years), after which rates adjust to floating.

Greater Flexibility: Banks typically allow tenures from 5 to 35 years, giving you more flexibility than HDB. Additionally, banks often waive early repayment penalties for sales (though not for refinancing), making them better for investors planning to sell.

Competitive Rates: Bank rates are typically lower than HDB rates. At 1.8% (compared to HDB's 2.6%), a $300,000 bank loan over 25 years costs approximately $1,280 monthly—$140 less than HDB—and saves approximately $42,000 in total interest.

Additional Features: Banks often offer features like interest offset accounts (where savings reduce your interest charges), cashback promotions, and flexible payment schedules. These features affect your effective amortization.

Comparison: HDB vs Bank Mortgage

For HDB flat buyers, you have the option to use either HDB financing or bank financing. Most financial advisors recommend comparing both options using amortization schedules. The lower bank rates often save tens of thousands of dollars despite the rate uncertainty.