CPF Board - Our First Home Calculator - Assumptions
Content
4/29/2016
CPF Board Our First Home Calculator Assumptions
Our First Home Calculator
Assumptions
The program adopts the following assumptions. Those
marked with an asterisk * can be changed after the initial
results are computed.
1. If there are two users, the average age is adopted for the
loan period computation.
2. The debt servicing ratio (or percentage of gross monthly
income that can be afforded to be spent on housing) is 25%.
This is based on the average DSR for new flats in non
mature estates *.
3. The loan interest rate is 2.60% per annum. This is the
current HDB housing loan concessionary interest rate *.
4. The maximum loan repayment period is 30 years *. The
maximum loan repayment period for HDB loans is 65 years
minus buyer’s age or 30 years, whichever is shorter. The
maximum loan repayment period for loans taken through
financial institutions is 35 years.
5. The maximum age at which the loan must be repaid is 65
years old *.
6. For users aged 2154, the program assumes the loan is
repaid by 55. For users aged 5564, the loan is assumed to
be repaid by 65 *.
https://www.cpf.gov.sg/eSvc/Web/Schemes/FirstHome/Assumptions
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4/29/2016
CPF Board Our First Home Calculator Assumptions
7. Program assumes that the property price is equal to 100/80
or 100/90 of the computed maximum housing loan, for 80%
and 90% housing loan respectively; and that there is no
cash over valuation.
8. For HDB flat financed with HDB loan, the downpayment is
10% and maximum loan is 90%. For any property financed
with bank loan, the downpayment is 20% (the first 5% must
be cash) and maximum loan is 80%. Where a loan tenure
exceeds 30 years or loan repayment period crosses 65
years of age, the downpayment is 40% and the maximum
loan is 60%.
9. For HDB concessionary loan, the entire CPF Ordinary
Account savings balance will be used to reduce the loan
required. For bank loan, the program attempts to reserve
CPF savings equivalent to about 6 months of monthly
instalments as contingency funds, and use the rest to
reduce the loan required.
10.The Valuation Limit is the lower of the purchase price or the
value of the property at the time of purchase. This program
assumes that the Valuation Limit is equal to the purchase
price and market valuation, and there is no cash over
valuation. The CPF Withdrawal Limit is 120% of the
purchase price.
11.Stamp duty is assessed at 1% of property price for first
$180,000; 2% on the next $180,000; and 3% therafter.
Program assumes that CPF will be used to pay the stamp
fees wherever possible.
https://www.cpf.gov.sg/eSvc/Web/Schemes/FirstHome/Assumptions
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4/29/2016
CPF Board Our First Home Calculator Assumptions
12.Legal fees is assumed to be 1.5% of property price.
Program assumes that CPF will be used to pay the legal
fees wherever possible.
13.CPF housing grant, agents commission and Home
Protection Scheme premium are not included in the
program.
14.If user has insufficient CPF Ordinary Account savings, the
program assumes that cash is used to cover the difference.
15.User’s current cash balances are not factored into the
calculation. If user has excess cash balances, it can be used
to increase the possible purchase price.
This calculator is intended to provide general guidance on
housing affordability. Due to the assumptions and
computational approach adopted, the results may not
necessarily be similar to those provided by HDB/banks.
https://www.cpf.gov.sg/eSvc/Web/Schemes/FirstHome/Assumptions
3/3
CPF Board Our First Home Calculator Assumptions
Our First Home Calculator
Assumptions
The program adopts the following assumptions. Those
marked with an asterisk * can be changed after the initial
results are computed.
1. If there are two users, the average age is adopted for the
loan period computation.
2. The debt servicing ratio (or percentage of gross monthly
income that can be afforded to be spent on housing) is 25%.
This is based on the average DSR for new flats in non
mature estates *.
3. The loan interest rate is 2.60% per annum. This is the
current HDB housing loan concessionary interest rate *.
4. The maximum loan repayment period is 30 years *. The
maximum loan repayment period for HDB loans is 65 years
minus buyer’s age or 30 years, whichever is shorter. The
maximum loan repayment period for loans taken through
financial institutions is 35 years.
5. The maximum age at which the loan must be repaid is 65
years old *.
6. For users aged 2154, the program assumes the loan is
repaid by 55. For users aged 5564, the loan is assumed to
be repaid by 65 *.
https://www.cpf.gov.sg/eSvc/Web/Schemes/FirstHome/Assumptions
1/3
4/29/2016
CPF Board Our First Home Calculator Assumptions
7. Program assumes that the property price is equal to 100/80
or 100/90 of the computed maximum housing loan, for 80%
and 90% housing loan respectively; and that there is no
cash over valuation.
8. For HDB flat financed with HDB loan, the downpayment is
10% and maximum loan is 90%. For any property financed
with bank loan, the downpayment is 20% (the first 5% must
be cash) and maximum loan is 80%. Where a loan tenure
exceeds 30 years or loan repayment period crosses 65
years of age, the downpayment is 40% and the maximum
loan is 60%.
9. For HDB concessionary loan, the entire CPF Ordinary
Account savings balance will be used to reduce the loan
required. For bank loan, the program attempts to reserve
CPF savings equivalent to about 6 months of monthly
instalments as contingency funds, and use the rest to
reduce the loan required.
10.The Valuation Limit is the lower of the purchase price or the
value of the property at the time of purchase. This program
assumes that the Valuation Limit is equal to the purchase
price and market valuation, and there is no cash over
valuation. The CPF Withdrawal Limit is 120% of the
purchase price.
11.Stamp duty is assessed at 1% of property price for first
$180,000; 2% on the next $180,000; and 3% therafter.
Program assumes that CPF will be used to pay the stamp
fees wherever possible.
https://www.cpf.gov.sg/eSvc/Web/Schemes/FirstHome/Assumptions
2/3
4/29/2016
CPF Board Our First Home Calculator Assumptions
12.Legal fees is assumed to be 1.5% of property price.
Program assumes that CPF will be used to pay the legal
fees wherever possible.
13.CPF housing grant, agents commission and Home
Protection Scheme premium are not included in the
program.
14.If user has insufficient CPF Ordinary Account savings, the
program assumes that cash is used to cover the difference.
15.User’s current cash balances are not factored into the
calculation. If user has excess cash balances, it can be used
to increase the possible purchase price.
This calculator is intended to provide general guidance on
housing affordability. Due to the assumptions and
computational approach adopted, the results may not
necessarily be similar to those provided by HDB/banks.
https://www.cpf.gov.sg/eSvc/Web/Schemes/FirstHome/Assumptions
3/3
