Enter your gross monthly income, existing debts, and down payment. The 28/36 rule gives a conservative maximum purchase price — with context on the TDSR 55% cap, ABSD rates, LTV limits, and HDB vs private property rules.
A Singapore citizen household earning S$12,000/month gross with S$500/month in existing debts and S$412,500 saved (25% of S$1,650,000 target): the 28% housing cap is S$3,360/month and the TDSR cross-check allows up to 55% of income (S$6,600) minus existing debts (S$500), leaving S$6,100 for the mortgage. The 28% cap is the binding constraint at S$3,360/month.
At 3.2% over 25 years, S$3,360/month services a loan of ~S$718,000. Add the S$412,500 down payment: maximum affordable price roughly S$1,130,500. The S$1,650,000 target exceeds the 28/36 maximum significantly — a higher income, larger down payment, or lower target price would be needed.
The 28/36 rule provides a conservative baseline. In Singapore, MAS’s TDSR framework caps total monthly debt at 55% of gross income — more lenient than 36%, but stricter ABSD, LTV, and cash down payment rules make Singapore’s property market one of the most regulated in the world.
Singapore specifics: For a first private property with a bank loan, the LTV is capped at 75% (25% minimum down payment, of which at least 5% must be cash; the rest can come from CPF OA). ABSD of 20% applies to Singapore citizens buying a second residential property and 60% applies to foreign purchasers — budget for this on top of the purchase price. HDB flats are subject to separate MSR (30% of gross income) and eligibility rules.
MAS’s TDSR cap is 55% of gross monthly income for total monthly debt payments. The 28/36 rule caps housing at 28% and total debts at 36%. The 28/36 rule is more conservative; the TDSR allows more debt but Singapore’s LTV and cash requirements add other constraints.
ABSD is a stamp duty surcharge: Singapore citizens pay 0% on first property, 20% on second, 30% on third+. PRs pay 5% on first, 30% on second+. Foreigners pay 60% on any property. Rates as of April 2023 — verify with IRAS before transacting.
First private property loan: 75% LTV (25% down payment, minimum 5% cash; rest from CPF OA). Second outstanding loan: 45% LTV. Third+: 35% LTV. HDB concessionary loans allow 80% LTV for eligible flat buyers with stricter income ceilings.
Yes. CPF OA can cover up to 20% of the purchase price (subject to Valuation Limit and Withdrawal Limit). At least 5% of the purchase price must be paid in cash for private bank loans. Consult the CPF Board for your specific limits.
An international affordability benchmark: housing costs should not exceed 28% of gross monthly income and all monthly debts should not exceed 36%. In Singapore the TDSR cap is 55% — the 28/36 rule is the more conservative planning tool and recommended for stress-testing your affordability.
ProFinanceCast connects your mortgage to your full financial forecast — income growth, savings targets, and retirement timeline. Free forever for the core forecast.