Housing Affordability
One of the most important step in any housing planning is to ensure affordability. As much as most of us are optimistic that the property we purchase will appreciate and profit over time, it is extremely critical that one does not overstretch and get caught in the down cycle or high interest period.
Affordability Table for Resale HDB (Using Bank Loan)
| Income | Max Price (25Y Loan) | Max Price (20Y Loan) | Max Price (15Y Loan) | Max Price (10Y Loan) |
|---|---|---|---|---|
| $3,000 | $239,000 | $206,000 | $167,000 | $121,000 |
| $4,000 | $319,000 | $275,000 | $223,000 | $161,000 |
| $5,000 | $399,000 | $344,000 | $279,000 | $202,000 |
| $6,000 | $479,000 | $413,000 | $335,000 | $242,000 |
| $7,000 | $559,000 | $482,000 | $391,000 | $283,000 |
| $8,000 | $639,000 | $551,000 | $447,000 | $323,000 |
| $9,000 | $719,000 | $620,000 | $503,000 | $364,000 |
| $10,000 | $799,000 | $689,000 | $559,000 | $404,000 |
| $11,000 | $878,000 | $758,000 | $615,000 | $444,000 |
| $12,000 | $958,000 | $827,000 | $671,000 | $485,000 |
| $13,000 | $1,038,000 | $896,000 | $727,000 | $525,000 |
| $14,000 | $1,118,000 | $965,000 | $783,000 | $566,000 |
| $15,000 | $1,198,000 | $1,034,000 | $839,000 | $606,000 |
| $16,000 | $1,278,000 | $1,103,000 | $895,000 | $647,000 |
To purchase a resale HDB flat, you could loan up to 75% from a financial institution and repayment period of up to max 25 years or age 65. For example, if borrower’s age is 45, you could only loan up to 20 years (till age 65) instead of the max 25 years. The Max Price refers to the maximum property price one could purchase according to the respective income bracket. The other financing alternative is to take a housing loan from HDB. To check your eligibility for a HDB loan, click here.
Affordability Table for Executive Condominium
| Income | Max Price (30Y Loan) | Max Price (25Y Loan) | Max Price (20Y Loan) | Max Price (15Y Loan) | Max Price (10Y Loan) |
|---|---|---|---|---|---|
| $3,000 | $267,000 | $239,000 | $206,000 | $167,000 | $121,000 |
| $4,000 | $356,000 | $319,000 | $275,000 | $223,000 | $161,000 |
| $5,000 | $445,000 | $399,000 | $344,000 | $279,000 | $202,000 |
| $6,000 | $534,000 | $479,000 | $413,000 | $335,000 | $242,000 |
| $7,000 | $623,000 | $559,000 | $482,000 | $391,000 | $283,000 |
| $8,000 | $712,000 | $639,000 | $551,000 | $447,000 | $323,000 |
| $9,000 | $801,000 | $719,000 | $620,000 | $503,000 | $364,000 |
| $10,000 | $890,000 | $799,000 | $689,000 | $559,000 | $404,000 |
| $11,000 | $979,000 | $878,000 | $758,000 | $615,000 | $444,000 |
| $12,000 | $1,068,000 | $958,000 | $827,000 | $671,000 | $485,000 |
| $13,000 | $1,158,000 | $1,038,000 | $896,000 | $727,000 | $525,000 |
| $14,000 | $1,247,000 | $1,118,000 | $965,000 | $783,000 | $566,000 |
| $15,000 | $1,336,000 | $1,198,000 | $1,034,000 | $839,000 | $606,000 |
| $16,000 | $1,425,000 | $1,278,000 | $1,103,000 | $895,000 | $647,000 |
To purchase an EC, you could loan up to 75% from a financial institution and repayment period of up to max 30 years or age 65. For example, if borrower’s age is 45, you can only loan up to 20 years (till age 65) instead of the max 30 years. The Max Price refers to the maximum property price one could purchase according to the respective income bracket by utilising no more than 30% of the income to service the instalment (commonly known as MSR or Mortgage Servicing Ratio).
Affordability Table for Private Residential Property
| Income | Max Price (30Y Loan) | Max Price (25Y Loan) | Max Price (20Y Loan) | Max Price (15Y Loan) | Max Price (10Y Loan) |
|---|---|---|---|---|---|
| $4,000 | $712,000 | $639,000 | $551,000 | $447,000 | $323,000 |
| $5,000 | $890,000 | $799,000 | $689,000 | $559,000 | $404,000 |
| $6,000 | $1,068,000 | $958,000 | $827,000 | $671,000 | $485,000 |
| $7,000 | $1,247,000 | $1,118,000 | $965,000 | $783,000 | $566,000 |
| $8,000 | $1,425,000 | $1,278,000 | $1,103,000 | $895,000 | $647,000 |
| $9,000 | $1,603,000 | $1,438,000 | $1,241,000 | $1,007,000 | $728,000 |
| $10,000 | $1,781,000 | $1,598,000 | $1,379,000 | $1,119,000 | $809,000 |
| $11,000 | $1,959,000 | $1,757,000 | $1,517,000 | $1,230,000 | $889,000 |
| $12,000 | $2,137,000 | $1,917,000 | $1,655,000 | $1,342,000 | $970,000 |
| $13,000 | $2,316,000 | $2,077,000 | $1,793,000 | $1,454,000 | $1,051,000 |
| $14,000 | $2,494,000 | $2,237,000 | $1,931,000 | $1,566,000 | $1,132,000 |
| $15,000 | $2,672,000 | $2,397,000 | $2,069,000 | $1,678,000 | $1,213,000 |
| $16,000 | $2,850,000 | $2,556,000 | $2,207,000 | $1,790,000 | $1,294,000 |
| $17,000 | $3,028,000 | $2,716,000 | $2,344,000 | $1,902,000 | $1,375,000 |
| $18,000 | $3,206,000 | $2,876,000 | $2,482,000 | $2,014,000 | $1,456,000 |
| $19,000 | $3,384,000 | $3,036,000 | $2,620,000 | $2,126,000 | $1,537,000 |
| $20,000 | $3,563,000 | $3,196,000 | $2,758,000 | $2,238,000 | $1,618,000 |
| $25,000 | $4,453,000 | $3,995,000 | $3,448,000 | $2,797,000 | $2,022,000 |
| $30,000 | $5,344,000 | $4,794,000 | $4,138,000 | $3,357,000 | $2,427,000 |
| $35,000 | $6,235,000 | $5,593,000 | $4,827,000 | $3,916,000 | $2,831,000 |
| $40,000 | $7,126,000 | $6,392,000 | $5,517,000 | $4,476,000 | $3,236,000 |
| $45,000 | $8,017,000 | $7,191,000 | $6,207,000 | $5,035,000 | $3,640,000 |
| $50,000 | $8,907,000 | $7,990,000 | $6,897,000 | $5,595,000 | $4,045,000 |
To purchase a private residential property, you could loan up to 75% from a financial institution and repayment period of up to max 30 years or age 65. For example, if borrower’s age is 45, you can only loan up to 20 years (till age 65) instead of the max 30 years. The Max Price refers to the maximum property price one could purchase according to the respective income bracket by utilising no more than 60% of the income to service the instalment (commonly known as TDSR or Total Debt Servicing Ratio). The difference between TDSR and MSR is that TDSR takes into consideration other loan obligations such as credit card debt, car loan etc. The amount shown in the table is based on the assumption that there is no other loan obligations so final loan amount may differ.
If you find these affordability tables useful, please feel free to share among your friends. If you have any specific property related questions or research you would like me to cover, simply drop me a text by clicking on the WhatsApp button at the bottom of the screen.