How do I calculate my max loan

To calculate your maximum loan, you need to consider several factors such as your total income, existing debts, and the loan-to-value (LTV) limits. Here's a simplified example:

1. Total Debt Servicing Ratio (TDSR):
- Your total monthly debt repayments (including the new loan) should not exceed 55% of your gross monthly income.

2. Loan-to-Value (LTV) Limits:
- The LTV limit determines the maximum amount you can borrow based on the property's value and your existing loans.

3. Example Calculation:
- Assume your household income is $10,000 per month.
- Under the TDSR rule, you can use up to $5,500 a month (55%) to service all debts.
- If you have $2,000 in monthly repayments for non-property loans, you have $3,500 left for property loan repayments.
- Based on an interest rate of 3.5% p.a. and a 25-year loan tenure, the maximum home loan you can afford is approximately $798,984.

4. LTV Limits:
- If you have no outstanding housing loans, the LTV limit is 75% of the property's value.
- If you have one outstanding housing loan, the LTV limit is 45%.
- If you have two or more outstanding housing loans, the LTV limit is 35%.

By considering these factors, you can estimate the maximum loan amount you are eligible for. For a more precise calculation, it is advisable to consult with a financial advisor or use an online loan calculator.

Good luck with your property purchase!