IN PRINCIPLE APPROVAL
Buy New Home
Understand Home loan in Singapore
Getting a approval in principle.
Principle amount that you wanna borrow. Bank in Singapore can leand up to 75% for private resident.
Mortgage interest, also known as a “finance charge,” is the amount you pay a lender to obtain financing for a property. The interest is expressed as both a percentage — the “interest rate” or “mortgage rate” — and a total dollar amount. As you repay your mortgage, you’ll make monthly payments that cover both the loan principal (the amount you borrowed) and interest based on your loan’s amortization schedule.
In Singapore, your LTV will be reduced if, due to your preferred loan tenure, the loan is only repaid after age 65. For bank loans, you would normally be allowed to borrow up to 75% LTV, but this is reduced to a maximum of 55% if your mortgage loan tenure is too long for your age.
For example, if you are age 40 and ask for a 30-year loan (i.e. your loan would be repaid at age 70), banks would only be allowed to offer you at most 55% of the loan amount, which may directly affect your ability to afford the property you were planning to get. On the other hand, asking for a 20-year loan would (assuming all other conditions are met) leave you eligible to borrow 75% of the property price.
The solution to this would, of course, be to ask for a shorter loan tenure, but there are limitations to this as well. Your mortgage loan tenure will also affect your Total Debt Servicing Ratio (TDSR) (as well as your Mortgage Servicing Ratio (MSR) if you are buying an HDB flat), which affects your eligibility for any home loan.
The lock-in period refers to a contractual timeframe—typically 2 to 3 years—during which you are committed to staying with your mortgage provider. If you attempt to fully or partially repay your loan, refinance with another bank, or sell your property during this period, you may face early repayment penalties.
Most mortgage packages in Singapore, especially those with promotional interest rates, come with a lock-in period to ensure the lender recovers the cost of offering you a low rate and providing any legal fee subsidies.
Monthly mortgage payment breakdown is one of the most important numbers in your life. Yet many homeowners only focus on the monthly amount, without understanding how much goes to principal vs interest, how CPF is involved, or how changes in SORA or loan tenure will affect long-term costs.
Repayment schedule help home buyers, HDB upgraders and investors who want a clear, practical understanding of how their home loan EMI (monthly instalment) is calculated, how an amortization schedule works, and how to make safer, smarter decisions using transparent data and verified tools.
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Understand every component of your monthly mortgage payment
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See exactly how much of your payment goes to principal vs interest over time
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Use CPF, cash and loan structures safely under MAS/HDB rules
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Stress-test your affordability against TDSR/MSR limits
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Compare HDB loans vs bank loans with real numbers
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We will help you to compare bank rates, calculate eligibility and apply securely