If I earn $100,000 a year, how much loan can I borrow for a private property in Singapore?

To determine how much you can borrow for a private property in Singapore, several factors need to be considered, including your income, other debt obligations, and the Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) guidelines.

Total Debt Servicing Ratio (TDSR)

The TDSR is set at 55%, meaning that your total debt obligations, including the proposed mortgage, should not exceed 55% of your monthly gross income.

Calculation

If you earn $100,000 per year, your monthly gross income would be approximately $8,333.

- TDSR Limit: 55% of $8,333 = $4,583 per month

Other Debt Obligations

You need to subtract any other monthly debt obligations (such as car loans, credit card debt, etc.) from this amount to find out how much you can allocate towards your mortgage.

Loan Amount

Assuming you have no other significant debt obligations, here is a simplified example:

- Monthly Mortgage Repayment: This would depend on the loan tenure, interest rate, and loan amount. However, as a rough estimate, if you aim for a 25-year loan tenure with an average interest rate, you might be able to secure a loan where the monthly repayment does not exceed the TDSR limit.

Loan-to-Value (LTV) Ratio

The LTV ratio for private properties in Singapore is typically up to 75% of the property's purchase price, with the remaining 25% to be paid as a down payment.

Example

If you are looking at a property priced at $1 million, the maximum loan amount would be 75% of $1 million, which is $750,000.

Affordability Check

Using EdgeProp Singapore's resources or similar calculators, you can input your income, other debt obligations, and the desired loan tenure to get a more accurate estimate of how much you can borrow.

In general, with an annual income of $100,000 and assuming no significant other debt, you could potentially qualify for a substantial loan amount, but it will be capped by the TDSR and LTV limits. For precise calculations, it is advisable to use a mortgage calculator or consult with a financial advisor.