How much can I afford?

Banks don't judge your loan at the rate you will actually pay. MAS requires them to check you could still afford the instalment if interest rose to at least 4% a year, or the bank's own package rate if that is higher. At that rate, all your monthly debts must stay within 55% of your income (TDSR). For HDB flats and new ECs, the home loan alone must also stay within 30% (MSR). This is why your loan limit can be lower than expected when rates are low. Your actual monthly payment is shown separately, using the rate you really pay.

The standard loan limit of 75% of the price only applies if the loan ends by age 65, and within 25 years for HDB flats or 30 years for other homes. You can take a longer loan, up to 30 years for HDB flats and 35 years for other homes, but the limit drops to 55% of the price and at least 10% must be paid in cash. Many banks let the loan run to age 75 on these terms. Some stop earlier, so check with the bank.

HDB checks your HDB loan at a 3% interest rate, even though the HDB loan rate you pay is 2.6%. At 3%, the monthly instalment must stay within 30% of your household's gross monthly income (MSR). This keeps a buffer in case your finances change.