How To Calculate Housing Loan Monthly Installment In Singapore


When shopping for an ideal bank to get your housing loan, you must consider critical factors that’ll allow you to repay the loan promptly. The first point worth knowing is how much housing loan monthly installment you’ll pay,  and thus know how to calculate housing loan monthly installment. Choosing a mortgage with favorable monthly installments allows you  service your loan easily and peacefully.

Here’s a guide on how to calculate housing loan monthly installment in Singapore.

How Much Loan Can You Borrow For Your New Home?

The amount of money you can borrow for your new home is determined by factors such as the loan-to-value limit, loan tenure, the mortgage servicing ratio, and the total debt servicing ratio.

Loan To Value Limit (LTV) 

The loan-to-value limit or ratio determines the maximum amount of loan you can get based on the value of the property you’re buying. For a HDB housing loan, you can get up to 80% of your home value or price financed, repayable for 30 years. Banks can finance up to 75% of your home’s value as a mortgage. For refinancing, the LTV limit decreases.

The Loan Tenure Or Loan Term

How long you repay the loan determines how much you can borrow for your new home. The loan tenure is determined based on factors such as the applicant’s age, the number of housing loans owed, and the limit loan tenure on the type of loan the applicant is applying for.

Total Debt Servicing Ratio (TDSR)

The total debt servicing ratio dictates the maximum percentage of income an applicant can use towards loan repayment. Generally, the TDSR should not exceed 60 percent of the applicant’s income.

Mortgage Servicing Ratio (MSR)

The mortgage serving ratio dictates the total percentage of income you can use to make monthly installments for your housing loan. For HDB flats and executive condominiums within the minimum occupation period, the MSR is 30 percent.

What Is A Mortgage Repayment?

Mortgage repayment is the monthly amount you’ll pay your bank or lender towards the mortgage loan. The mortgage repayment amount varies between applicants, depending on several factors, including the interest rates, loan tenure, and the amount awarded.

The type of interest rate offered – fixed and floating interest rates – also affects your monthly installments or mortgage repayments. As the name suggests, fixed interest rates are non-changing rates over a specific period. This means that the interest rate on your mortgage loan remains constant over that period, even if market conditions change. On the other hand, floating interest rates change daily depending on the market conditions. You’ll make varying housing loan monthly installments based on the changing rates.

How Much Mortgage Payment Can You Afford?

The mortgage payment you can afford is usually up to 2.5 times your gross annual salary. Further check with your potential bank on the same.

How To Calculate Housing Loan Monthly Installment

Housing loan monthly installment is calculated using mortgage calculators. When shopping around for a mortgage, you’ll come across many terms worth understanding before applying for the loan. Below is a roundup list of the common terms.

Loan Tenure

A loan tenure, or loan term, is the total time, usually in months, that you’ll repay the loan fully. Loan tenure for mortgages varies from bank to bank and differs from HDB loans. Banks have mortgage tenures of up to 35 years, while HDB housing loans have a tenure of up to 30 years.

Interest Rate

The interest rate, usually in percentage, is the cumulative extra cost the loan attracts during the loan tenure. An interest rate adds to the total amount owed and can be paid for with the principal in monthly installments or separately, depending on the interest type.

Housing Loan Balance

The housing loan balance also called the principal amount, varies depending on the type of mortgage you take from the bank.

If you’re taking a mortgage for the first time, the housing loan balance is the total amount you owe the bank or the amount your bank disburses to your account. The housing loan balance includes the amount disbursed plus interest charged for the entire loan tenure.

If you’re refinancing, the housing loan balance is the total amount you owe the bank from your mortgage loans.


This is summarised information about your loan, usually represented in a table. The table shows the outstanding amount over the entire loan tenure, the interests accrued, and the oncoming payment information.

Monthly Installments

Monthly installments can also be called mortgage repayment. This is the amount of money you’ll pay towards your loan. Monthly installments can change over the loan repayment period when interest rates change. Your bank will notify you of the same, or you can get this information from the amortization table. Your housing loan balance will be adjusted accordingly by your bank.

Principal And Interest Paid

When you make your monthly payments, the loan calculator shows how much of the money has been used to pay the interest and the principal. You’ll also see the outstanding loan details.

Insurance, Taxes, And Fees

When you take out a mortgage for the first time or refinance, you’ll incur extra costs, such as taxes and insurance, which are calculated in your loan.

The banks or HDB housing loans require one to take housing insurance during application. If something happens to the applicant, the insurance company will give their family money to repay the mortgage. These are normally included in the mortgage loan and can be computed using mortgage loan calculators.

Here’s a step-by-step process on how to calculate housing loan monthly installment in Singapore using a mortgage calculator.

1. Research For A Calculator Online

Various banks, money lenders, and the CPF government websites have mortgage repayment calculators to determine monthly installments. You can easily get such calculators by performing a simple google or binge search, then using one from a reputable website.

At BST Credit, we have an online calculator that is simple to use and generates numbers in seconds. You can try it out here. If you’re taking an HDB housing loan or refinancing using your CPF savings, you can use the CPF loan calculator or the bank website where you’re getting your mortgage.

2. Gather The Essential Information

Calculating your monthly installments using a loan repayment calculator requires you to input figures. The most common figures these installment calculators ask for are the loan amount, the interest rate, and tenure. This is where you can use the essential information or terms we defined above, so you know you’re inputting the exact figures needed.

3. Input The Essential Information And Get Your Calculated Monthly Installments.

On the repayment calculator website of your choice, fill in the loan amount, the interest rate, and the loan tenure. The calculator will do the math and display the calculated monthly installments based on the figures.

Compare Monthly Installments From Different Banks To Choose The Most Suitable

While on the home loan calculator website, try to input different figures offered by various banks and note the monthly installments displayed. Compare the different mortgage repayments and choose one that fits your monthly income and expenditure budget. Choosing the best monthly installment will enable you to repay your mortgage promptly.

How To Use A Mortgage Calculator 

You can calculate monthly installments on your housing loan using online mortgage calculators. Regardless of the bank or provider, repayment calculators are straightforward and ask for similar details, such as the loan amount, the interest rate, and tenure.

Here’s how to calculate housing loan monthly installment using our calculator.

  1. Visit our website. From the homepage, click the loans page at the top. Under the dropdown menu, click loan calculator. Alternatively, use this direct link to the loan calculator page.
  2. Fill in the loan amount, tenure, and interest rate and click calculate. These figures should be from the bank you want your mortgage loan from.
  3.  In seconds, you’ll see the monthly payment, total interest, and total repayment displayed just below the space you entered your details from.

Wrapping Up 

A mortgage is a great way to own a home. However, you must consider the housing loan monthly installments you’ll make. Before taking a loan, use the mortgage loan calculators online to calculate the housing loan monthly installment. Contact us or apply if you need urgent cash or a personal loan.

Ready to try BST Credit?

Apply Now