Is a 54-year-old with a monthly income of $4700 eligible for a bank loan, and if so, how much can they get?

To estimate how much bank loan you can get, several factors need to be considered, including your monthly income, age, and the Total Debt Servicing Ratio (TDSR) set by the Monetary Authority of Singapore.

Given your monthly income of $4,700 and age of 54, here are some key points:

Total Debt Servicing Ratio (TDSR)

Your total debt obligations, including the proposed housing loan, cannot exceed 60% of your monthly gross income. For you, this would be $2,820 (60% of $4,700).

Loan Tenure

Since you are 54, the maximum loan tenure would be capped at 65 years minus your age, which is 11 years. However, banks may offer shorter tenures.

Loan Amount

Using the EdgeProp Mortgage Calculator, you can input your income, desired loan tenure, and interest rate to get an estimate of the loan amount you can qualify for. Generally, with a shorter loan tenure due to your age, the loan amount will be lower.

Example Calculation

Assuming an interest rate of around 3% per annum and a loan tenure of 11 years, here is a rough estimate:

• Your monthly repayment should not exceed $2,820 (TDSR limit).
• Using the mortgage calculator, you might find that the maximum loan amount could be around $400,000 to $500,000, depending on the exact interest rate and other factors.

Bank Approval

The actual loan amount approved by the bank can vary based on other factors such as your credit score, other debt obligations, and the bank's lending policies.

For a more accurate estimate, it is advisable to use the EdgeProp Mortgage Calculator or consult with a financial advisor or a bank directly.