An HDB affordability calculator helps buyers estimate how much HDB flat they may be able to afford based on income, existing debts, loan tenure, interest rate, down payment and borrowing limits. It is useful for early planning before applying for an HDB Flat Eligibility letter or approaching a financial institution.

The Mortgage Servicing Ratio, or MSR, limits the monthly housing loan repayment for an HDB flat to a percentage of the buyer's gross monthly income. For HDB flats financed by a financial institution, the MSR is currently capped at 30% of monthly income.

MSR looks only at the monthly housing loan repayment for the HDB flat. TDSR looks at all monthly debt obligations, including the proposed housing loan, car loan, credit card debt, personal loan, education loan and other property loans. For financial institution loans, HDB states that the MSR is up to 30% of monthly income and the TDSR is not more than 55% of monthly income.

Yes. MSR applies when assessing HDB housing affordability. It is especially important because it can reduce the maximum loan amount even when the buyer appears to pass the broader TDSR test.

TDSR may apply depending on the financing route. For HDB flats financed by financial institutions, the TDSR limit is not more than 55% of monthly income. For HDB housing loans, HDB states that MSR applies while TDSR is not applicable.

The AsianPrime HDB Affordability and MSR Calculator estimates a buyer's indicative HDB budget by using income, existing monthly debt, loan tenure, interest rate and affordability limits. It helps show the estimated maximum monthly repayment, maximum loan amount, possible purchase price and down payment requirement.

Existing debt reduces the income available for a new housing loan. Car loans, personal loans, credit card debt and other recurring debts may lower the amount a buyer can borrow, especially when the loan is assessed under TDSR.

Loan tenure affects the monthly repayment. A shorter loan tenure usually increases the monthly instalment for the same loan amount, which may reduce the maximum HDB flat price that fits within MSR or TDSR limits.

For early planning, buyers should use a prudent interest rate rather than relying only on the lowest advertised mortgage rate. HDB states that the HDB concessionary housing loan interest rate is pegged at 0.10% above the prevailing CPF Ordinary Account interest rate and may be adjusted quarterly.

For HDB housing loans, HDB uses the higher of the interest rate floor, currently 3.0% per annum, and the prevailing HDB housing loan interest rate to compute the eligible housing loan amount. This is separate from the actual HDB concessionary interest rate charged.

No. The calculator gives an indicative estimate only. The HDB Flat Eligibility letter gives buyers a more formal view of their eligibility to buy a new or resale flat, CPF housing grants and HDB housing loan amount, where applicable. HDB advises buyers to apply for the HFE letter before starting their home buying journey.

Yes. HDB states that buyers should apply for an HDB Flat Eligibility letter for a holistic understanding of their housing and financing options before starting their home buying journey. The HFE letter informs buyers upfront of flat purchase eligibility, CPF housing grants and HDB housing loan eligibility.

Yes. The calculator may be used for early affordability planning for both BTO and resale HDB flats. However, the actual loan amount, grant eligibility, cash requirement and CPF usage should still be verified through the HFE letter, bank assessment or professional advice before committing to a purchase.

CPF Ordinary Account savings may generally be used for eligible HDB flat purchases, subject to CPF rules, property lease conditions and individual CPF balances. Buyers should also plan for cash needs, stamp duties, legal fees, renovation costs and an emergency reserve.

The actual loan amount may be lower if the lender applies a shorter tenure, different income assessment, variable income haircut, higher interest rate assumption, existing debt obligations, credit assessment criteria or lower property valuation. The calculator should be used as a planning guide, not as a confirmed loan offer.

After using the calculator, compare the estimated budget with your preferred flat type, location, CPF balance, available cash, grants, stamp duty, renovation budget and emergency savings. Buyers should then apply for an HFE letter or obtain a bank in-principle approval before committing to a flat purchase.