Can you calculate the loans for purchasing a $1 million 3-bedder condominium?

Question

can do a calculation on how much the loans if to purchase a million 3bedder condominium

Accepted Answer

To calculate the loan amount for a $3 million 3-bedroom condominium in Singapore, you need to consider the following:

Loan-to-Value (LTV) Ratio

The maximum LTV ratio for a property loan in Singapore is typically 75% of the purchase price for individuals who do not have any outstanding home loans. If you have one or more outstanding home loans, the LTV ratio may be lower.

Calculation

Loan amount: 75% of $3,000,000 = $2,250,000

Down Payment

You would need to pay the remaining 25% as a down payment.

Down payment: 25% of $3,000,000 = $750,000

Additional Costs

You should also consider other costs such as Buyer’s Stamp Duty (BSD), which for a $3 million property would be:

1% of the first $180,000 = $1,800
2% of the next $180,000 = $3,600
3% of the next $180,000 = $5,400
4% of the remaining $2,460,000 = $98,400
Total BSD = $1,800 + $3,600 + $5,400 + $98,400 = $109,200

Additionally, there may be other costs like legal fees, which can range from 0.3% to 0.5% of the purchase price.

Total Outlay

Loan amount: $2,250,000
Down payment: $750,000
Buyer’s Stamp Duty: $109,200
Legal fees (assuming 0.4%): $12,000

So, to purchase a $3 million condominium, you would need to secure a loan of $2,250,000 and have approximately $871,200 available for the down payment, BSD, and legal fees.

You can use EdgeProp's mortgage calculator to get a more detailed and personalized calculation, including considerations for Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR).

Thank you for reaching out to EdgeProp Buddy. Please note that I'm still in Beta mode. For detailed insights, it's always a good idea to consult with a real estate professional on topics like this.

New Launches